Transcript Fighting against 3d’s: deficiency, DISORDER and DETACHMENT

Presentation by
H.E. Amb. CHOI Jong-hyun
14 August 2012
NIAA Symposium on the Occasion of
The 67th Independence Day of the Republic of Korea
KOREA: NEW INFLOW OF FOREIGN
DIRECT INVESTMENT (FDI)
Contents
 Korea in a Nutshell
 Korean Economy 101
 Korea-Nigeria Relations
 Korean-Nigeria Economic & Trade Relations
 Korean Businesses in Nigeria
 Korean Investment in Nigeria
 Suggestions for Closer Economic Partnership
 Summary: Korea is
Korea In a Nutshell
 Population: 50 million
 Landmass: 96,920 km²
 1/8 of Nigeria’s land territory
 From a war-torn, post-colony situation…
 Japanese colonial rule: 1910~1945
 Korean War: 1950~53
 Became a G-20 Member and a Donor country
 Hosted G-20(2010)/Nuclear Security Summit (2012)
 Produced UN Secretary-General
Korean Economy 101
 GDP: USD 1.11 trillion (15th in the world)
 Per capita: USD 23,749
 7th largest trading nation in the world
 Trade volume: USD 1.07 trillion(2011)
 Global leader in various industries
 Automobile, cell phone, semi-conductor, ship
building, IT, steel, petro-chemical, construction, …
Korea-Nigeria Relations
 Diplomatic ties established in 1980
 The only Korean Cultural Centre in Africa
 VIP visits increased since 2000
 President Chun (1982)
 President Obasanjo (00, 06)  Pre. Roh (06)
 President Jonathan: Mar. 2012 (NSS)
 Countless Ministerial visits since 2011~
 Defense, Environment, Culture, Power, Trade and
Investment, Youth, …
KOR-NIG Economic & Trade Relations
 Nig: Korea’s No.1 or 2 export destination in Africa
 Compete with South Africa for that status
 Trade balance: change in favor of Nigeria this year
(unit: $m)
2009
2010
2011
1,046
1,377
3,291
1,297
-40%
Exports
816
805
2,486
450
-77%
Imports
229
572
804
846
336%
Balance
586
233
1,682
-395
Trade
2012 (1~6)
 Korean exports: petrochemical products ,
automobiles, AV equip., cell phones
 Nigerian exports: Natural gas (95%), copper, lead
Korean Businesses in Nigeria
 Construction: Daewoo, Hyundai, Samsung, …
 Active partnerships with IOCs
 Energy sector: KNOC, KEPCO
 KNOC (Korea National Oil Company)
 KEPCO (Korea Electric and Power Company)
 Electronics: Samsung, LG
 Trade: Hyundai, Daewoo, STX, …
 Other areas: furniture, plastics, cosmetics (wig)
Korean Investment in Nigeria (1)
 Korean FDI in Nigeria is less than USD 200 million in total
 Total FDI in Africa minimal, compared with that in Asia or South
America
 2.8 bn(1.5%) vs 36 bn(China, 19%), 20.7 bn(SE Asia, 11%) or 15.2
bn(S America, 8%)
 Recent big investment in a few cases (e.g. Madagascar No.1 FDI
destination in Africa-one bn)
 Nigeria : Relative increase in 2007-08, due to package deal on
OPL 321/323 in 2006
 Reduced to 3-6 million per year, following dispute over the deal
 Possible Explanation
 Africa in general not high on agenda of Korean businesses?
 Political transition / security challenges?
 Dispute over OPL 321/323?(negative spill-over effect)
Korean Investment in Nigeria (2)
(unit: $m)
Region
2009
2010
2011
Total
North America
5,998
30%
4,599
19%
7,195
28%
45,249
24%
USA
3,563
17.5%
3,368
13.9%
5,874
23%
38,764
20%
Asia
6,678
33%
9,924
41%
10,441
41%
84,796
45%
China
2,168
11%
3,619
15%
3,572
14%
35,998
19%
South East Asia
1,550
7.6%
3,771
16%
3,585
14%
20,678
11%
Europe
5,327
26%
6,127
25%
3,516
14%
33,612
18%
U.K
1,710
8%
3,280
14%
1,243
5%
8,834
5%
Africa
373
2%
291
1.2%
372
1.5%
2,759
1.5%
Nigeria
6
0.03%
6
0.03%
3
0.01%
191
0.1%
South Africa
0.09
0.01%
17
0.07%
32
0.12%
222
0.1%
Madagaskar
285
1.4%
166
0.7%
296
1.2%
1,023
0.5%
Middle East
360
1.8%
399
1.7%
353
1.4%
3,209
1.7%
South America
1,041
9%
2,138
9%
2,257
9%
15,163
8%
SUM
32,450
100%
36,250
100%
37,097
100%
190,385
100%
Suggestions for Closer Economic
Partnership
 Brighter Future
 Hyped-up interests from Korea
 Began to perceive Africa as rising partners
 Continent from ‘Hopeless’ to ‘Hopeful’
 Nigeria: Big potential to tap into
 Biggest market in Africa
 Many promising signs despite security challenges
 Strong commitment to implement Vision 20:2020
 Sound economic management
 Sustained economic growth in recent years
Suggestions for Closer Economic
Partnership
 Suggestions
 Continued & coordinated efforts to improve
business climate
 Confidence-building Measures
 Amicable resolution of dispute over OPL issues
 Speedy ratification of Avoidance of Double
Taxation Treaty (signed 2006; still not in force)
 Businesses thrive on predictability, transparency &
stability
Summary: Korea is…
 Reliable partner for Transformation Agenda
 Can support Nigeria’s endeavour to achieve Vision
20:2020
 We do not avoid challenge
 Unique partner for Development
 Eager to share its economic development experience
& knowhow
 Inter-government cooperation on the rise
 Would like to seek further cooperation among
business communities of Nigeria and Korea