Understanding memorandum to boost economic cooperation in energy, fishery resources and human development

Korean companies willing to participate in infrastructure projects in Egypt

Signing cooperation agreements in training, technology and nuclear safety under study            

South Korea and Egypt have signed a memorandum of understanding to activate economic cooperation in the fields of energy, human development, developing fisheries, exports, and infrastructure development. Egyptian Finance Minister, Dr. Youssef Boutros Ghali, signed on behalf of Egypt, and South Korean Minister of Strategy and Finance YOON Jeung-hyun signed on behalf of South Korea following the meeting the two ministers held yesterday in Cairo.

Dr. Ghali says the agreement marks a new stage in relations with South Korea which started its diplomatic relations with Egypt back in 1995. The agreement is supposed to attract more South Korean investments to the Egyptian market, especially in the fields of services and construction where South Korea enjoys long-standing experience, greatly boosting as well mutual economic and trade relations, according to the Egyptian Finance Minister.

The Egyptian and South Korean parties stressed their commitment to sustain growing mutual economic cooperation. As for macroeconomic policies, it was agreed to exchange views on the international economic developments, setting a mutual agenda for financial and economic policies to be followed in emergencies in order to secure stability on the macroeconomic level and to achieve sustainable growth for both world economy and the economies of the two countries.

The Egyptian Finance Minister adds that the Korean side offered financial assistance provided by the Korean private sector to develop the infrastructure in countries around the world. South Korea has requested facilities for its companies to contribute to Egyptian infrastructure projects—an initiative welcomed by the Egyptian government. Thus, it was agreed that the South Korean side would be provided with all the information relevant to infrastructure projects on the Egyptian agenda for the coming period under the new system of partnership with the private sector.

As for cooperation in the field of energy, Dr. Ghlai talked about the South Korean request for mutual cooperation in the field of safe use of nuclear energy and developing human resources of the two countries in this field. The two countries have agreed to hold a workshop of experts and senior officials from both sides to facilitate cooperation in this field. Signing a memorandum of understanding on nuclear energy, science and technology between the two countries is currently under study.

It has also been agreed to benefit from the Korean expertise in economic development through effective cooperation in applying the Knowledge Sharing Program (KSP) which includes exchanging know-how between the Egyptian and South Korean bodies undertaking policy making in 2011 in addition to facilitating cooperation in fields of development and trade and activating the memorandum of understanding on cooperation and information exchange between the export boosting agencies of the two countries.

As for developing fisheries, Dr. Ghali says, the memorandum provides for establishing and activating a governmental mechanism for cooperation in this field. Egypt is currently studying a South Korean suggestion to sign an understanding memorandum for cooperation in this filed.

With respect to world economy, the Egyptian Minister adds, it has been agreed to continue mutual cooperation to restructure the International Monetary Fund (IMF) and to work together to complete the reform and to continue discussing the reform of the International Monetary System (IMS) and the world safety net.

South Korean Minister of Strategy and Finance YOON Jeung-hyun, in his turn, asserted the importance of the achievements of the G-20 Seoul Summit which took several decisions to increase the voting power of the emerging economies in the IMF and other structural reforms in both the IMF and the World Bank. He urged Egypt to continue cooperation on these issues, and said his meetings with Dr. Ghali dealth with the required measures to lay down the foundations of economic development in the North African region through the Korea Africa Economic Cooperation Conference (KOAFEC) and the African Development Bank (AfDB).  

The meetings also discussed the difficulties faced by Korean companies investing in Egypt, such as the restrictions imposed on the heavy equipment and the strict rules governing foreign employment in Egypt and salaries.

The Korean minister added that it had been agreed to hold periodical meetings between the finance ministers of the two countries together with annual meetings on the general managerial level. The second meeting of the finance ministers will be held in 2013 in the South Korean capital, Seoul.

(Source: Ministry of Finance)