(MENAFN- The Peninsula) South Korea, one of Qatar's largest trading partners, is planning to make huge investments in Qatar, especially in the energy-intensive downstream industries, aiming to reduce its huge trade deficit with the Gulf state, according to a senior official of the Korean Embassy in Qatar.
The trade volume between Qatar and the Republic of Korea stood at $26.63bn (QR96.97bn) in 2014, marginally (about 1.4 percent) down compared to $27bn (about QR98.32bn) in 2013.
Qatari exports to South Korea in 2014 were $25.73bn, while imports totalled $905m with the trade balance highly lopsided in favour of Qatar, largely due to the huge imports of Qatari gas by South Korea.
"Our main concern is to reduce the trade balance with Qatar. For that we are trying to bring Korean companies to set up factories in Qatar," said Kwang II Lee (pictured), Director, Kotra-Commercial Section of the Korean Embassy, adding, "we have identified some promising sectors in Qatar's downstream industries, such as aluminum, petrochemicals among other sectors."
Lee said: "Korea is planning to manufacture 'after-market auto parts', such as high brand wheels (rims) and other aluminium products used in the automotive industry."
He said Korean companies are also exploring investment opportunities in the pharmaceuticals, waste and recycling business.
"In addition, we are also looking forward to manufacturing eco-friendly materials by using household waste and papers which may also find use in Qatar's booming construction sector," Lee told The Peninsula on the sidelines of an event here recently.
He noted that the areas of bilateral cooperation between the two countries have further deepened and widened over the last few years resulting in a steady trade growth of an average six percent (year-on-year), with the exception of 2014.
The areas of mutual economic cooperation between Qatar and South Korea, according to Lee, have widened further to include several new sectors, such as healthcare, electronics, and other consumer goods items, and this trend is expected to continue in the future.
Commenting on the challenges faced by Korean investors in Qatar, he said that although the institutions are well-established by the government, but there are difficulties in "finding trust-worthy partners" with good business orientation. He also said that in this regard some seven Korean companies, including two from the aluminium industry, are participating in the 'Invest in Qatar', forum, which is concluding here.
The two-day forum, organised by the Doha-based Gulf Organisation for Industrial Consulting (GOIC), provided unique opportunity to meet investors, entrepreneurs, technology suppliers, decision-makers and officials working in the industrial sector. He said there are 40 Korean companies operating in Qatar (including 25 big and 15 mid-sized companies), with a combined capital exceeding $1bn. Joint Qatari-Korean companies numbered 115, with a capital of $2bn.
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