Korea, Cambodia expand cooperation

The Korea Herald
http://www.koreaherald.co.kr

2009.06.05

Korea and Cambodia yesterday celebrated their fast-expanding ties and agreed to further cooperation in resources, construction, finance and other diverse fields.

Seoul also pledged to assist Cambodia in improving agriculture, medical service and energy development while agreeing to offer $60 million in loans to finance the building of roads and renovation of sewers.

The agreements were made during a summit between President Lee Myung-bak and Prime Minister Hun Sen at Cheong Wa Dae.

Hun Sen arrived here Saturday to attend a summit between Korea and the Association of Southeast Asian Nations, which took place on Monday and Tuesday on Jeju Island to mark 20 years of official dialogue between the two sides.

Lee and Hun Sen agreed to support a plan to build an exclusive industrial complex for Korean companies in Sihanoukville, a port city in southern Cambodia.

Korea Land Corp. proposed the 20 billion won-project in 2008 to host the increasing number of Korean businesses in the nation.

The location will be finalized within the year and the first stage of construction will be complete by 2012, according to Seoul officials.

The industrial estate would help firms save costs and spur Korea's investment, they said.

Korea is the largest foreign investor in Cambodia with $830 million poured in as of 2007.

The two leaders also agreed to cooperate on the establishment of a bourse for equities and bonds in Cambodia.

In March, Korea Exchange signed an agreement with the Cambodian government to set up the exchange this year, each owning 45 percent and 55 percent, respectively.

The Korean bourse operator will offer information technology systems and Phnom Penh will provide the facility and site.

After the summit, they observed the signing of six memorandums of understanding, involving cooperation for the development of residential and industrial towns, the exploration of energy and mineral resources in Cambodia, among other things.

Korea will offer its know-how in transport management and set up a research center for agricultural technology in the nation.

The state-run Export-Import Bank of Korea also agreed to extend loans worth $30 million for the development of the Siem Reap River and the renovation of wastewater treatment system around the river.

Another $30 million credit will be offered for construction and maintenance for roads in Cambodia.

The premier is making his fifth visit to Korea, with which he has maintained close relations.

Korea is Cambodia's closest partner in investment, tourism, cultural exchanges, job training, information technology, construction, finance and aviation industries.

Two-way trade was $310 million in 2008 with Korea's exports and imports standing at $290 million and 14 million.

The two nations reestablished diplomatic ties in 1997, which Hun Sen regards as one of his proudest foreign policy achievements.

The leaders are also known to be close. Lee served as an economic adviser to Hun Sen for eight years from 2000, and the Cambodian leader attended Lee's inauguration in February 2008.

Hun Sen also deeply impressed citizens here when he personally headed rescue efforts after a passenger flight carrying many Koreans crashed in his country in 2007.

He recently told the Korean media that kimchi, Korea's signature side dish, is one of his favorite foods and that he can make it.

By Hwang Jang-jin