South Korea-South Africa Relations
1. Political relations
o South Korea had fairly friendly relations with South Africa as South Africa had dispatched troops to South Korea during the Korean War (one Air Force squadron of 826 soldiers dispatched with 24 of them killed in action), but formal ties were severed after 1978 when South Korea joined the UN sanctions against the African nation for its racial discrimination policies.
o As the white-ruled South African government abolished its policies of racial segregation in 1990, both nations began to seek ways to improve their ties, eventually signing an agreement to establish diplomatic relations in December 1992.
o Since that time, mutual visits have been made at the head-of-state level. South Africa elected a black majority government in May 1994 through its first all-race democratic election. Its first black president, Nelson Mandela, made an official visit to South Korea in July 1995.
South African President Jacob Zuma visited South Korea twice during his tenure, first for the G20 Seoul Summit in November 2010 and then for the Nuclear Security Summit in March 2012. South Korean President Lee Myung-Bak visited the African nation for the IOC General Assembly in Durban in July 2011.
o From the establishment of formal diplomatic ties through 2014, eight rounds of political consultations were held at the level of deputy foreign minister. At the 8th political consultation held in Seoul in October 2014, the two nations agreed to enhance their relations into a strategic partnership and to hold a foreign-minister level joint committee meeting in 2015.
2. Economic and trade relations
A. Overview
ㅇ With the diplomatic ties established between the two nations in December 1992, the volume of trade between them increased each year. It reached 3 billion dollars in 2006, hit the record high of 5.35 billion dollars in 2011, and has remained significant at the level of 3 billion dollars since then.
- South Korea had traditionally operated a deficit in its trade with South Africa due to mineral imports from the African nation.
However, the situation has improved thanks to the strong performance of Korean manufacturers (including automakers and mobile phone makers), and it saw its deficit turn into a surplus in 2012.
ㅇ Given that the two nations have economic structures which are supplementary, efforts should be made to strengthen South Korea's economic ties with South Africa through encouraging South Korean companies to invest in the nation.
- South Africa has rich underground resources and is the largest industrial nation in Africa. From a mid- to long-term perspective, there is great potential for further economic and trade cooperation.
B. Trade status
(Unit: USD 100 mn)
Classification 2010 2011 2012 2013 2014
Total trade volume 39.4 53.62 43.17 44.27 31
Export 16.68 22.56 21.88 26.98 14.76
Import 22.72 31.06 21.29 17.29 16.24
Balance -6.04 -8.5 0.59 9.69 -1.48
* Source: WTO
ㅇ South Africa: South Korea's largest trading partner in Africa
- Key export items: automobiles, mobile phones, synthetic resin, heavy construction equipment, diesel fuel, and lubricant
ㅇSouth Korea imports natural resources including mineral resources.
- Key import items: platinum, alloy iron, iron ore, aluminum ingot, bronze ingot, and bituminous coal
C. South Korea's investment in South Africa
ㅇ Annual direct investment by South Korean companies
(Unit: USD 1,000)
Year 2009 2010 2011 2012 2013 2014 Total
Investment
reported 825 16,673 32,203 75,365 5,753 4,912 304,851 Investment made 94 16,896 31,504 32,806 3,365 1,983 355,496 * Source: The Export-Import Bank of Korea
ㅇ South Korean companies in South Africa
- About 20 South Korean companies are running branch offices in South Africa, including Korea Trade Promotion Corporation (KOTRA), Korea Resources Corporation (KRC), Korea Electric Power Corporation, Daewoo International, Samsung Electronics, LG Electronics, Samsung C&T, M-TEK, Hyundai Motor, CHEIL, POSCHROME, Daewoo E&C, and Hyundai E&C.
3. Agreements and treaties reached between the two nations
ㅇ Double Taxation Treaty: signed in July 1995 and entered into force on January 7, 1996
ㅇ Aviation Treaty: signed in July 1995 and entered into force on July 7, 1995
ㅇ Investment Promotion and Protection Agreement: signed in July 1995
and entered into force on June 6, 1997
ㅇ Science and Technology Cooperation Agreement: signed in February 2004 and entered into force on August 31, 2004
ㅇ Nuclear Cooperation Agreement: signed in October 2010 and entered into force on February 24, 2011
ㅇ Extradition Treaty: signed in May 2007 and entered into force on June 20, 2014
ㅇ Treaty on Mutual Assistance in Criminal Matters: signed in May 2007 and entered into force on June 20, 2014
ㅇ Cultural Cooperation Agreement: formal draft agreed on in June 2013 ㅇ Customs Mutual Assistance Agreement: formal draft agreed on in
August 2013
