A bird’s-eye view of activity at the Sihanoukville Autonomous Port (PAS). The port is the busiest in the Kingdom. Supplied
The balance of trade between Cambodia and South Korea during the first three quarters of the year reached approximately $630 million, an increase of over 10% compared to the same period in 2023.
South Korea ranked as Cambodia’s 13th largest trading partner, according to the General Department of Customs and Excise of Cambodia (GDCE).
GDCE data shows that from January to September, total trade between the two nations totalled $627.74 million, a 12.9% increase over the $555.95 million recorded in the same period last year. Cambodian exports to South Korea amounted to $242.16 million, a 16.4% increase, while Koran imports equalled $385.58 million, up by 10.8%.
This resulted in a trade deficit for Cambodia of about $143.42 million, compared to $139.91 million during the same period last year.
The GDCE reported that in September alone, the trade exchange between the two countries amounted to $71.48 million a 36.94% jump on last September’s figures. The Kingdom’s exports were valued at $23.57 million, an increase of 26.5%, while Korean imports amounted to $47.91 million, up by 42.8%
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on October 21 that the implementation of the Cambodia-Korea Free Trade Agreement (CKFTA), along with the excellent relations between the governments and private sectors of both countries, has led to a continuous increase in trade activity.
He noted that textile and agricultural products are the main exports from Cambodia to South Korea, while goods imported from Korea include electronics, vehicles, pharmaceuticals, cosmetics and food products.
“I believe that the trade value between the two countries will continue to increase, as currently many Korean investors are investing in Cambodia to produce goods for export to South Korea and the international market,” he said.
Heng added that although Cambodia exports fewer goods to Korea than it imports, the country can still generate significant revenue from Korea each year through Cambodians working there.
During his visit to South Korea to attend the 25th World Knowledge Forum in September, Cambodian Senate president Hun Sen urged Woo Won-Shik, speaker of South Korea's National Assembly, to encourage more South Korean investors to inject capital into Cambodia.
Hun Sen assured the speaker that the Cambodian government is committed to protecting South Korean investors and ensuring overall peace and security for all foreign investors. He also explained that an agreement to establish a Special Economic Zone (SEZ) for South Korean companies in Cambodia may soon materialise, which would make it easier for South Korean investors to operate in Cambodia.
The Cambodia-Korea Free Trade Agreement (CKFTA) was signed in October 2021 and entered into force in December 2022. Through the CKFTA, South Korea is committed to eliminating 95.6% of its tariff lines for goods from Cambodia. Most tariffs were eliminated immediately. The CKFTA is expected to boost Cambodia's exports of textiles and garments, footwear, bags and accessories, electronics devices and rubber, as well as aquaculture and agriculture products.
In 2023, bilateral trade between Cambodia and South Korea totalled $751.38 million, a decrease of 3.5% on 2022. Cambodian exports to South Korea amounted to $281.15 million, an increase of 20.3%, while Korean imports were $470.25, a drop of 13.8%, according to the GDCE.
