On June 4, President Yoon Suk Yeol promised to create a systematic foundation to boost trade and investment between Korea and Africa. Yoon revealed plans to increase Official Development Assistance (ODA) to Africa to $10 billion and provide companies with $14 billion in export financing.
In his opening speech at the 2024 Korea-Africa Summit, Yoon stated, “In terms of trade, we need to actively push for the Economic Partnership Agreement (EPA) and Trade Investment Promotion Framework (TIPF). Regarding investment, we need to expand the Investment Guarantee Agreement to stimulate the exchange between companies on both sides.” He added, “We will also actively support efforts for economic integration within the region through the African Continental Free Trade Area (AfCFTA) launched in 2019.”
Yoon continued, “We aim to expand the scale of ODA to $10 billion by 2030” and “We plan to provide approximately $14 billion in export financing to promote trade and investment of Korean companies in Africa.”
The scale of ODA this year is about $4.6 billion. The plan is to more than double this by 2030. The Export-Import Bank provides export financing to Korean companies operating in Africa, which stood at $4.3 billion as of 2023. Yoon has also promised to more than double this figure.
Regarding cooperation in African infrastructure, agriculture, and health, Yoon said, “We will continue to expand the green ladder through projects such as the construction of the Olkaria Geothermal Power Plant in Kenya and the Battery Energy Storage System (BESS) construction in the Republic of South Africa to respond to the crisis of climate change.” He added, “We will actively promote the transfer of agricultural technology and the revitalization of rural communities and contribute to increasing the rate of food self-sufficiency through the expansion of the K-Rice Belt project.” He further explained, “We will jointly tackle challenges in the health sector based on our valuable experience of jointly responding to Ebola and COVID-19 in the past.”
Yoon emphasized, “We will seek sustainable cooperation methods for issues related to future generations, such as the stable supply of key minerals and digital transformation.”
During bilateral meetings with the heads of state who visited South Korea to attend the Korea-Africa Summit, Yoon proposed cooperation in the supply network of key minerals several times. The proposal is to stably supply Africa’s abundant key minerals and support Africa’s digital transformation on South Korea’s side.
The South Korean president shared, “Africa is young, dynamic, and rich in resources. South Korea has advanced technology and diverse experiences. We will find sustainable solutions by combining each other’s strengths.”
Yoon also asked for cooperation in responding to North Korea’s nuclear and missile threats. He specifically referred to North Korea’s attempt to launch a reconnaissance satellite, a mass launch of short-range ballistic missiles (SRBMs), and the scattering of propaganda leaflets. He sought cooperation in implementing the UN Security Council’s sanctions resolution against North Korea.
“North Korea has continued to launch various missile tests following the launch of a military reconnaissance satellite four times from May last year to early last week,” Yoon pointed out. “Recently, North Korea has been making extremely unreasonable provocations, such as repeatedly sending balloons carrying waste to our country.”
Yoon stressed, “South Korea will protect the peace of the Korean Peninsula and the international community by thoroughly implementing the UN Security Council resolution with our partners in Africa.”
