ISLAMABAD: South Korean Commerce Minister Inkyo Cheong has outlined an ambitious plan to shift Korea’s industrial base from its Northeast Asian neighbors to Pakistan following the signing of the Economic Partnership Agreement (EPA) between the two countries .
The revelation came during a high-level ceremony in Seoul on Thursday, where Commerce Minister Jam Kamal Khan and the Korean minister signed a joint statement to begin formal negotiations to achieve the EPA. The declaration reflects the commitment of the two countries to expand trade, investment and economic partnership.
An official announcement from the Ministry of Commerce said the EPA seeks to build on the long-standing diplomatic relations between the two countries, established in 1983, and promote mutually beneficial trade in goods and services, economic cooperation and supply chain resilience. . The agreement will be aligned with the principles of the World Trade Organization and is expected to be a cornerstone of the future of bilateral relations.
At the ceremony, Cheong highlighted the potential of targeting new markets in East Africa and Central Asia using Pakistan as a strategic manufacturing hub. Furthermore, he expressed a strong desire to bring a business delegation to Pakistan to explore investment opportunities and strengthen ties between the private sectors of both nations.
Seoul interested in moving its industrial base to Pakistan
“With Pakistan’s cost-effective workforce, liberal investment policies and proximity to high-growth regions, we see immense potential to develop a dynamic partnership that benefits both parties,” said Mr Cheong.
The Korean minister reiterated his commitment to advancing the negotiations in the shortest possible time. “The EPA represents not only a trade agreement but a transformative partnership that will elevate ties between Korea and Pakistan to unprecedented levels,” he said.
He highlighted the strategic importance of Pakistan and stated that Pakistan’s geographical location and its vast market of 250 million people make it a critical partner for Korea’s economic growth plans.
Cheong also announced his intention to personally lead the first round of negotiations, which will be held in Pakistan. He invited Pakistan’s Commerce Minister Jam Kamal to co-chair the discussions, signaling Korea’s commitment to fostering a high-level partnership.
Both sides expressed their determination to conclude the negotiations quickly. The Terms of Reference (TOR) provide a comprehensive framework to address key issues such as trade liberalization, investment, digital trade, intellectual property rights and climate resilience.
With the first round of negotiations scheduled for early 2025, both nations are prepared to embark on a new era of economic collaboration, targeting global markets and ensuring shared prosperity.
Kamal highlighted the untapped potential of bilateral trade, which currently stands at $1.3 billion annually, greatly benefiting South Korea. He emphasized the opportunity for Pakistani companies to learn from Korea’s transition from low-tech industries to advanced sectors, underscoring the shared vision for economic advancement.
“Together we can build bridges of cooperation between various sectors such as food, IT, minerals, textiles and logistics,” Kamal said.
He formally invited his Korean counterpart to visit Islamabad for the first round of negotiations. He hoped the visit would deepen ties between the two nations and foster collaboration at the highest level.
Published in Amanecer, January 10, 2025.
