Presentation by H.E. Amb. CHOI Jong-hyun 14 August 2012 NIAA Symposium on the Occasion of The 67 th Independence Day of the Republic of Korea

Contents  Korea in a Nutshell  Korean Economy 101  Korea-Nigeria Relations  Korean-Nigeria Economic & Trade Relations  Korean Businesses in Nigeria  Korean Investment in Nigeria  Suggestions for Closer Economic Partnership  Summary: Korea is

Korea In a Nutshell  Population: 50 million  Landmass: 96,920 km²  1/8 of Nigeria’s land territory  From a war-torn, post-colony situation…  Japanese colonial rule: 1910~1945  Korean War: 1950~53  Became a G-20 Member and a Donor country  Hosted G-20(2010)/Nuclear Security Summit (2012)  Produced UN Secretary-General

Korean Economy 101  GDP: USD 1.11 trillion (15 th in the world)  Per capita: USD 23,749  7 th largest trading nation in the world  Trade volume: USD 1.07 trillion(2011)  Global leader in various industries  Automobile, cell phone, semi-conductor, ship building, IT, steel, petro-chemical, construction, …

Korea-Nigeria Relations  Diplomatic ties established in 1980  The only Korean Cultural Centre in Africa  VIP visits increased since 2000  President Chun (1982)  President Obasanjo (00, 06)  Pre. Roh (06)  President Jonathan: Mar (NSS)  Countless Ministerial visits since 2011~  Defense, Environment, Culture, Power, Trade and Investment, Youth, …

KOR-NIG Economic & Trade Relations  Nig: Korea’s No.1 or 2 export destination in Africa  Compete with South Africa for that status  Trade balance: change in favor of Nigeria this year  Korean exports: petrochemical products, automobiles, AV equip., cell phones  Nigerian exports: Natural gas (95%), copper, lead (1~6) Trade1,0461,3773,2911,297-40% Exports , % Imports % Balance , (unit: $m)

Korean Businesses in Nigeria  Construction: Daewoo, Hyundai, Samsung, …  Active partnerships with IOCs  Energy sector: KNOC, KEPCO  KNOC (Korea National Oil Company)  KEPCO (Korea Electric and Power Company)  Electronics: Samsung, LG  Trade: Hyundai, Daewoo, STX, …  Other areas: furniture, plastics, cosmetics (wig)

Korean Investment in Nigeria (1)  Korean FDI in Nigeria is less than USD 200 million in total  Total FDI in Africa minimal, compared with that in Asia or South America  2.8 bn(1.5%) vs 36 bn(China, 19%), 20.7 bn(SE Asia, 11%) or 15.2 bn(S America, 8%)  Recent big investment in a few cases (e.g. Madagascar No.1 FDI destination in Africa-one bn)  Nigeria : Relative increase in , due to package deal on OPL 321/323 in 2006  Reduced to 3-6 million per year, following dispute over the deal  Possible Explanation  Africa in general not high on agenda of Korean businesses?  Political transition / security challenges?  Dispute over OPL 321/323?(negative spill-over effect)

Region Total North America 5,99830%4,59919%7,19528%45,24924% USA 3, %3, %5,87423%38,76420% Asia 6,67833%9,92441%10,44141%84,79645% China 2,16811%3,61915%3,57214%35,99819% South East Asia 1,5507.6%3,77116%3,58514%20,67811% Europe 5,32726%6,12725%3,51614%33,61218% U.K 1,7108%3,28014%1,2435%8,8345% Africa 3732%2911.2%3721.5%2,7591.5% Nigeria 60.03% %1910.1% South Africa %170.07%320.12%2220.1% Madagaskar %1660.7%2961.2%1,0230.5% Middle East %3991.7%3531.4%3,2091.7% South America 1,0419%2,1389%2,2579%15,1638% SUM 32,450100%36,250100%37,097100%190,385100% (unit: $m) Korean Investment in Nigeria (2)

Suggestions for Closer Economic Partnership  Brighter Future  Hyped-up interests from Korea  Began to perceive Africa as rising partners  Continent from ‘Hopeless’ to ‘Hopeful’  Nigeria: Big potential to tap into  Biggest market in Africa  Many promising signs despite security challenges  Strong commitment to implement Vision 20:2020  Sound economic management  Sustained economic growth in recent years

Suggestions for Closer Economic Partnership  Suggestions  Continued & coordinated efforts to improve business climate  Confidence-building Measures  Amicable resolution of dispute over OPL issues  Speedy ratification of Avoidance of Double Taxation Treaty (signed 2006; still not in force)  Businesses thrive on predictability, transparency & stability

Summary: Korea is…  Reliable partner for Transformation Agenda  Can support Nigeria’s endeavour to achieve Vision 20:2020  We do not avoid challenge  Unique partner for Development  Eager to share its economic development experience & knowhow  Inter-government cooperation on the rise  Would like to seek further cooperation among business communities of Nigeria and Korea