According to the Korea International Trade Association, bilateral trade rose 22.7 percent at $195.2 million in the first two months of 2022.
From January to February, the Kingdom spent $130 million for importing products from the East Asia nation, surging by 39.1 percent compared to the same period last year.
The Cambodia-Korea Free Trade Agreement (CKFTA), the Kingdom’s second bilateral FTA after its deal with China, signed by the two countries last year, will materialise soon.
”The CKFTA will provide more than 10,000 Cambodian goods duty-free access to South Korea, according to the Ministry of Commerce.
MINISTRY OF COMMERCEwww.moc.gov.kh
The agreement will boost exports, increase gross domestic product, raise employment opportunities and help speed up the recovery of the two economies affected by Covid-19. The countries can expand trade liberalisation markets in addition to the ASEAN-Korea Free Trade Agreement (AKFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP).
Vice President of the Cambodia Chamber of Commerce Lim Heng said on Wednesday that the close relationship of two governments and economic ties had built confidence in investors from South Korea to Cambodia, which helped increase the bilateral trade.
The CKFTA will be another factor to attract more Korean investors to the Kingdom, Heng said.
“Korea and Cambodia just signed the bilateral FTA, reflecting the positive progress of mutual trade between the two countries,” Heng said.
“Presently, the pact has not yet been put into force, but we have seen the growth of bilateral trade. So, once it is in force, it will attract more investment to Cambodia from South Korea,” Heng said.
Cambodia mainly exported footwear and other apparel, travel products, beverages, electrical and electronic components, rubber, pharmaceuticals and agricultural products to South Korea.
Bilateral trade between Cambodia and South Korea reached $965.132 million last year, a nine per cent surge from $885.3 million in 2020.
In 2021, Cambodian exports to South Korea amounted to $341.503 million, up by 7.353 per cent year-on-year from $318.112 million, while imports clocked in at $623.628 million, rising by 9.947 per cent from $567.210 million in 2020.