What spheres of industry Kazakhstan and South Korea are to cooperate on?

Business Materials 6 May 2019 18:46 (UTC +04:00)

Baku, Azerbaijan, May 6


The realization of some 58 projects in 10 various spheres is foreseen within the framework of the new joint program of Kazakhstan and South Korea called “Fresh Wind”, Trend reports citing finprom.kz.

"During 2018, the total volume of gross inflow of direct foreign investments from South Korea to Kazakhstan equaled to $478.9 billion, which is 3.4 percent less than in the previous year. In 2017, the total volume of investments amounted to $495.5 million with an annual increase of 36.2 percent," reads the message.

"Since year 2005 when the sum of investments amounted to $58 million, an annual gross inflow of South Korean investments increased 8.3 times," the report says.

"In 2018, direct foreign investments became the main tool of South Korean investors; they equaled to $1.3 billion (annual decrease by 6.3 percent). Thus, some 78.8 percent of Kazakhstan’s liabilities before South Korean investors account for direct foreign investments. Portfolio investments account for $1.5 billion or 0.1 percent (annual decrease by 12.4 percent). The percentage of other investments equal to $360.9 billion or 21.2 percent (annual increase of 93.1 percent)," the statement said.

"In 2019, Kazakhstan and South Korea have signed new economic cooperation program for 2019-22 entitled "Fresh wind". It aims at mutual cooperation and realization of 58 projects in various sectors including transport and logistics, construction, infrastructural development, mining and metallurgy, trade, energy, innovation and ICT, agriculture, finance, health care, culture, tourism and education," reads the message.

Last year, the percentage of Kazakhstan’s liabilities before Korean investors increased in the professional, scientific and technical spheres and amounted to 43.3 percent of the total volume ($739.2 million). It is followed by construction industry which stood at 14.2 percent ($241.4 million) and spheres such as education, health care, social services, art, entertainment and recreation, which amounted to 1.8 percent ($30.1 million).

Out of all 40 projects in the portfolio of Kazakhstan-Korea Innovative Industrial projects, 19 projects worth $1.9 billion were already implemented, six projects worth $2.1 billion are in the process of realization. Another 15 promising projects worth $3.2 billion wll be implemented as a part of the "Fresh wind" program.