Treading the path of progress

South Korea, a major export-driven global economy, shares a strong bilateral relationship with the UAE.

The UAE is South Korea's biggest export destination in the Middle East and the second-largest oil supplier to the Pacific Rim nation, with trade between the two countries continuing to soar.

Trade relations

After posting record trade figures of $25 billion (about Dh90 billion) in 2008, the trade volume between the two countries dropped in 2009 owing to the debilitating effects of the global economic crisis. However, in 2010 trade picked up again and is expected to reach the 2008 level this year.

"The bilateral ties between South Korea and the UAE have seen steady growth since the establishment of formal diplomatic ties in 1980. Since 2009, when the two countries became strategic partners, the cooperative relations of the two countries are being expanded in all directions to include investment, military, culture, education, health care and renewable energy," says Kwon Tae-Kyun, the South Korean ambassador to the UAE. South Korea imports crude oil, naphtha and liquefied petroleum gas from the UAE, whereas the UAE imports manufactured goods including automobiles, electronic appliances and ships from South Korea.

In recent years, nuclear energy has assumed a pivotal role in relations between the two nations. Emirates Nuclear Energy Corporation (ENEC), the body which is in charge of implementing the UAE's civilian nuclear programme, has awarded a contract worth $20 billion to a consortium led by Korea Electric Power Corporation (KEPCO) to design, build and help operate the four new nuclear power plants the UAE is planning to establish by 2020.

"During the visit of Lee Myung-bak, President of the Republic of Korea, in March this year, the UAE government hailed South Korean companies for their role in the development of oil fields in the UAE. Both the governments also agreed on cooperationin the new growth areas such as semiconductors, media contents and finance," he says.

"One specific example of our cooperative projects would be Masdar City, which is ambitiously and strategically pursued by the Abu Dhabi government as the showcase of future energy. South Korea's clean technology cluster will be fostered therein, and the two countries are currently establishing its master plan," says the ambassador.

Discussions are also taking place on initiatives such as the tripartite cooperation between the Global Green Growth Institute of Korea, Masdar City and the International Renewable Energy Agency (Irena) in the UAE; joint investments in agriculture to enhance food security; and close coordination to combat Somali pirates. "South Korea and the UAE can also utilise their respective sovereign wealth fund to make joint investments in promising new ventures in third countries," the ambassador adds.

As of April this year, the total number of South Korean expats in the UAE was estimated at more than 6,000; this is projected to grow to 15,000 by the end of 2014 with the implementation of several bilateral economic projects. Besides, with Etihad Airways' launch of a direct air route connecting the capitals of these two countries last December, in addition to the existing flights between Dubai and Seoul by Emirates, the exchange of people between the UAE and South Korea will swell even further.

"The South Korean government is also making serious efforts to enable its experienced professionals, who have accumulated ample experiences over the country's half-century-long national development, to foray into the UAEjob market," says the ambassador.

Business centre

About 160 Korean firms are currently running businesses in the UAE and the figure is forecasted to rise steadily as the importance of the UAE as a business hub in the Middle East gains traction. Each year, about 40,000 to 50,000 South Koreans either stop over or enter the UAE. Though the number of UAE citizens visiting South Korea is relatively small at around 3,000, it is growing dramatically in recent years.

The demand for tourism in South Korea — both family holidays and medical tours — is burgeoning. Boasting a state-of-the-art medical infrastructure, South Korea can satisfactorily cater to high-level medical requirements of foreign patients. "MoUs for cooperation in the field of medical services have been signed recently between the health authorities of South Korea and the UAE to lay a foundation for regular transportation of patients from the UAE to Korea," the ambassador points out.

The South Korean Embassy in the UAE spares no effort to broaden the areas of cooperation between the two countries. It organises cultural events such as exhibitions of Korean modern art, performances of traditional and contemporary music, and film festivals to provide people insights into Korean culture and heritage. The embassy is also fostering ties among universities through exchanges of students and faculty to help the younger generationof the two countries develop long-term cooperative relations.

"Although South Korea and the UAE are geographically far apart, the two share a lot in common such as their zeal for economic development and education, respect for family values, and open and embracing culture among the people.

"I hope more UAE citizens will visit South Korea, which will result in better understanding among the people of the two countries," says the ambassador.
 

Korea in the UAE

Both South Korea and the UAE have taken various initiatives to promote bilateral ties and understanding between the nations.

The action kicks off in Abu Dhabi next week, with more than 150 children’s books from South Korea being displayed at the Al Ain Reads Book Show, to be held in the oasis city until October 8.

The end of the month sees Korean Cultural Week take place from October 24 to 27 at the Sultan Al Owais Cultural Foundation in Deira. The event will open with an art exhibition by the Arisoo Artists’ Association, where paintings and sculptures by modern Korean artists will be displayed throughout the week.

The cultural programmes will continue for a few days and will include performances by a team from Busan, as well as a traditional Korean Samulnori music performance, dance and percussion art performances, a display of Korean ceramic works, a lecture by the cultural attaché of the Korean Embassy in Cairo, and screenings of Korean movies. Also, booklets with Korean short novels and poems will be distributed.

Meanwhile, last month, His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, UAE Supreme Council Member and Ruler of Sharjah, opened the two-month long Sharjah Cultural Days in Suwon city in South Korea’s GyeongGi province. Organised by the Sharjah Department of Culture and Information, the event will last until November 16.
The annual event is part of the emirate’s attempts to extend bridges of culture between nations with the ultimate goal of enhancing bonds of peace. The festival offers several events reflecting the UAE’s vibrant culture and heritage.

— WAM and Gulf News Report

PARTNERSHIPS

South Korean companies in the UAE

Brandon Yea  — President, Kia Motors Middle East and Africa

 Operations in the UAE: "Our regional headquarters is located in Dubai. Mobis MEFZ, a company belonging to the same group, has established a massive spare parts and accessories distribution facility in Jebel Ali to ensure prompt availability of critical components at the shortest notice. Our distributor in the UAE, Al Majid Motors Co., has excellent after-sales service facilities that perfectly meet Kia Motors' guidelines."

Demand in the UAE: "Since the launch of new Kia models, the perception of customers towards KIA has changed drastically. The demand for models such as Sportage, Optima, Soul, Sorento, Cerato and the new Picanto has soared beyond our expectation."

Sales in the UAE: "A sound share of our sales is generated from the UAE. Being a window to the Middle East, Dubai acts as a crossroad which facilitates our regional business activities."

Future plans for the UAE: "With great cars and superior designs, we're confident about the acceptance of KIA cars in the UAE market. To boost this trend, Kia Motors will be emphasising more on the brand awareness campaigns."
 

Khaldon Abdul-Hafez — Communication and Marketing Manager, Hyundai Motors

 Operations in the UAE: "The brand was first introduced in the UAE in 1983. Following the appointment of our distributor Juma Al Majid, Hyundai's operations have grown to include ten branches across the UAE that continue to flourish with the help of over 200 employees, who share a combined passion for the brand and a determination to make it the leading choice for customers looking for a luxury car without the hefty price tag."

Sales in the UAE: "While sales figures continue to change each year, the UAE has proven to be a key player in driving the sales up for Hyundai globally."

Future plans for the UAE: "We have plans to upgrade our facilities and services to ensure customers are satisfied. We plan to open outlets in various major cities in the UAE."
 

H.S Paik — President, LG Gulf

 Operations in the UAE: "LG has a very strong presence in the UAE and Dubai is the regional headquarters of our Middle East and Africa operations. As the president of LG Gulf, as well as our regional operations, I also look after the activities of Caspian states and Afghanistan from Dubai. We have set up a warehousing facility at Jebel Ali Free Zone to support our rapidly growing activities in the Middle East. The quick turnaround at Jebel Ali port helps us meet our complex supply chain requirements easily."

Sales in the UAE: "The UAE is a strategic market for us and contributes significantly to our global performance. Currently about 20 per cent of our total GCC sales is derived from the UAE."

Future plans for the UAE: "My aim is to strengthen LG's market-leading position by rolling out several technologically-advanced products to cater to the demands of this market. The UAE has always been an early adopter of technologies in the region, so whenever we launch a new product or a marketing initiative we always bring them first to the UAE and introduce them later in other Gulf countries. In line with the UAE's commitment to create a sustainable future, we are increasingly coming up with energy saving and environmentally-compliant products and solutions in this market."

— C.S.