South Korea aims to increase bilateral trade flows with South Africa from about $4-billion a year at present, to $10-billion a year within five years, said Korea Trade- Investment Promotion Agency (Kotra) regional director-general for Africa Byung-Sam Kim on Monday.

“There is much room for improved economic ties and business relationships,” Kim told Engineering News Online.

According to 2010 South African Revenue Service trade data, South Korea was South Africa’s 14th largest trading partner, with imports increasing by 32% on the prior year, and totalling some R12.7-billion (about $2-billion). These imports consisted largely of vehicles, electrical machinery, plastic, iron and steel products and chemical products.

Trade flows between the two countries were fairly balanced, with South Africa also ranking 14th on South Korea’s list of trading partners. Exports from South Africa into South Korea totalled about R12.5-billion, and consisted largely of commodities, such as iron and steel, aluminium, copper, and mineral fuel.

This was an increase of about 65% when compared with 2009 figures, when exports from South Africa to South Korea stood at about R7.5-billion.

Kim explained that the South Korean economy was heavily dependent on international trade. It is the world’s sixth-largest exporter and the tenth-largest importer and Kotra wants these figures reflected in trade with South Africa.

One of the ways in which the investment promotion agency was boosting trade relations was by hosting the first ever Korean Expo in Africa, at the Sandton Convention Centre from July 4 to July 6.

Korean Expo 2011 Africa would showcase technologies and products, and bring South Korean companies in the electricity, information technology, renewable energy, machinery, architecture, consumer goods and health care products sectors, to engage with South African businesses.

More than 80 of Korea’s companies would exhibit during the expo, and would be seeking opportunities for business meetings and potential for building business partnerships and joint ventures with African firms.

Kim noted that perceptions of Africa were changing positively, thus increasing interest from Korean companies in boosting business relations with Africa. South Africa was also seen as a gateway to doing business in Africa, he added.

Kim said that in terms of finance and technology foreign direct investment, South Korea was the most suitable partner for South Africa, and could transfer skills and knowledge on economic development and diversification.

He added that the two countries shared similar colonial histories. However, within about 60 years, South Korea displayed a complete turnaround, and moved from Japanese occupation and a devastating war in the 1950s, to one of the top-ten economies in the world.

In fact, South Korea is the only country in the world that has moved from being a recipient of aid from developed nations, to being an aid donor.

South Korea learnt industrial skills from developed nations and now boasts the number-one ship-building industry in the world, the fourth-largest automotive industry, as well as a very successful electronics sector, with giants such as Samsung and LG taking top positions globally.

At present, only one Korean company, optic fibre product manufacturer M-Tec, has manufacturing facilities in South Africa, while about 10 companies have regional office headquarters in Johannesburg. These include Samsung, which employs about 300 people, and LG Electronics, which also has about 300 South Africans employed there.

Kim stated that with the Korean government promoting Africa as an investment destination that is experiencing significant economic growth, companies are keen to set up offices in South Africa. He expected that about 20 South Korean companies would have an office based in South Africa by the end of 2011.

Kim added that Korean Expo Africa 2011 being held in Africa is indicative of Korea’s commitment to expand trade and investment with Africa.