The Korea Herald
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
(jjhwang@heraldm.com)
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
(jjhwang@heraldm.com)
2 comments:
Dear Hun Sen
Thanks Korean for bringing opportunities to Cambodia. But SomDach Hun Sen should have done a better job for this kind of investment relationship. Law, law, law, anti-corruption law, and law enforcement should be in place, otherwise, no fair businesses at all.
We can look at this question "why some nations are economically strong and weak".
According to the UN, over 30,0000 children worldwide die every day of hunger and malnourishment. These children are located in economically weak countries.
In about 500 years ago all nations of the world were poor, today, however, some are much wealthier than others. World Bank found out that 22 nations have average national incomes per person above $20,000 a year, with the figure in the USA being $41,400. In contrast 21 countries have average per person incomes of a dollar per day or less, under $365 annually. Why??
According to the book, legal environment of business says, there are several factors:
1) Dependency theory: it means that economically strong nations exploit the resources and labor of the weaker nations through trade. As we can see that some nations grow and flourish at the expense of keeping others economically poor (cheap labors, less compensation, no promoting living standards of those people,,,,, etc)
2) Natural resource: the skillful management of natural resources. For example: economically wealthy Japan has relatively few natural resources and little fertile land while economically weak Russia has a abundance of both. Many economically poor regions of South America and Africa posses much fertile land, various minerals, and considerable other natural resources. What's about Cambodia? why we are still poor? because we don't have much natural resources? no way, but skill, management of the resources (even trades with other wealthy nations, are we really benefiting from those trades?)
3) Education and Technology: economically strong nations usually have more schools and implement technology more quickly than economically weak nations.
4) Private market: according to many economists, the present or absence of a modern market is a single most significant reason why some economies are strong and other are weak.
5) Law and legal system: an adequately enforced system of equally applied law is increasingly recognized as a necessary foundation for strong, productive economies. A certain framework of law is necessary for maximum incentive to entrepreneurs, investors, and inventors. The law of property, contract, tort, and various government regulations provide a foundation for institutions such as corporations, banks, and securities exchanges. Law secures the elements of of trust and certainty that are vital to economic transactions among strangers. No nationals with weak economies have adequate legal systems, and all nations that have these systems are economically strong in comparison.
SomDach Hun Sen, please thinks a bit more about fair trade/business and contributions. I don't believe that Korean would invest money for Cambodians, only the presence of law and law enforcement that we, Cambodians can benefit from their presence.
Thanks
Without the role of law, major economic institutions such as corporations, banks, and labor unions would not function, and the government's many investments in the economy-regulatory mechanisms, tax systems, customs structure, monetary policy, and the like - - would be unfair, inefficient, ad opague'
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