South Korea, African Countries Sign Agreements On Minerals, Exports

South Korea Forges 50 Deals with African Nations in Landmark Summit

In a historic move to bolster economic and industrial cooperation, South Korea has signed nearly 50 deals and agreements with leaders from 48 African countries during its first-ever summit with the continent’s leaders. The agreements span critical sectors such as mining, energy, and manufacturing, marking a significant step in South Korea’s efforts to strengthen its economic ties with Africa.

The summit, which aimed to capitalize on Africa’s vast resources and burgeoning market potential, witnessed the signing of 47 agreements with 23 African countries. These agreements reflect Asia’s fourth-largest economy’s strategic interest in securing a stable supply of critical minerals essential for industries like battery manufacturing.

Among the prominent deals, Hyosung Corp (004800.KS), a major South Korean conglomerate, inked a $30 million contract to supply electric transformers to Mozambique. This deal highlights the expanding footprint of South Korean companies in Africa’s infrastructure sector.

Additionally, South Korea’s industry ministry announced agreements with Madagascar and Tanzania focused on cooperation in the extraction and supply of critical minerals. These minerals are vital for South Korea’s advanced manufacturing industries, particularly in the production of batteries for electric vehicles and other high-tech applications.

“Despite its enormous potential, Africa still accounts for only 1-2% of South Korea’s trade and investment,” noted South Korean President Yoon Suk Yeol during a business summit attended by approximately 200 political and industry leaders from both regions. “My hope is that mutually beneficial resource cooperation will be expanded.”

In a bid to foster deeper economic ties, President Yoon pledged to increase development aid for Africa to $10 billion over the next six years. He also announced $14 billion in export financing to promote trade and investment by South Korean companies in African markets.

The summit marks a pivotal moment in South Korea’s foreign policy, underscoring a proactive approach to engaging with Africa’s resource-rich and rapidly growing economies. The agreements are expected to pave the way for increased South Korean investment in African infrastructure, energy, and technology sectors, driving mutual growth and development.

As South Korea seeks to diversify its economic partnerships and secure vital resources for its industries, this landmark summit and the ensuing agreements signify a robust foundation for future collaboration and economic prosperity between South Korea and Africa.