Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 11 Trade and Economic Relations between the Czech Republic and the Republic of Korea

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 2 History of the mutual relations 1990 – Diplomatic relations between Czechoslovakia and the Republic of Korea – European Union - Framework Agreement for Trade and Cooperation between the European Community and its Member States, on the one hand, and the Republic of Korea, on the other hand – The Agreement on Economic Cooperation between the Government and the Government of the Republic of Korea. Establishes the Joint Commission for Economic Cooperation. Chaired by the Czech Deputy Ministry of Industry and Trade and the Korean Ministry of Foreign Affairs – The EU and South Korea have upgraded their relationship to a Strategic Partnership, ensuring a high level of commitment from both sides. A Framework Agreement was signed on 10 May 2010 and entered into force on 1 June 2014.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 3 Czech-Korean Economic Cooperation "Korean-Czech seminar on creative economy in Chemistry", which was opened by the Minister of Industry and Trade Jan Mládek. Memorandum of Understanding between Technology Parks Ulsan Institute of Chemical Process Fundamentals and The Institute of Chemical Process Fundamentals (Czech Academy of Sciences) – First “Czech-Korean Nuclear Forum” attended by representatives of the Ministry of Trade, Industry and Energy of Korea, and Ministry of Industry and Trade. Memorandum of Understanding Memorandum of Understanding between the Export Guarantee and Insurance Corporation (EGAP) and K-Sure Memorandum of Understanding between The Technology Agency (TACR) and KITECH and KOTRA. Lastly, the mutual economic relations are enhanced by the Free Trade Agreement between EU and the Republic of Korea.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 4 Czech – Korean economic relations Republic of Korea is becoming a major business partner of the Czech Republic in Asia both, in the terms of investment activities as well as in the volume of mutual trade exchange. Czech Republic appreciates the conclusion of the ambitious EU – Korea Free Trade Agreement. The Republic of Korea ranks among the biggest foreign investors in the Czech Republic. Total investments of Korean companies have amounted to almost 3 billion USD and created 12 thousand jobs. Korea ranks among the three most important non-European trade partners of the Czech Republic (along with China and the USA) the turnover in 2014 amounted to nearly 3.6 billion value. USD.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 5 Export from the Czech Republic to Korea The main items of Czech exports to Korea: Energy machinery; Pumps and valves; Optical equipment; Vehicles and parts; Gear shafts; Machine tools; Glassware;

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 6 Import to the Czech Republic from Korea The main import items of Czech import from Korea: Cars and components for automobiles; Parts of electronic devices (TV and computer). The imports consists mainly of components that are subsequently finalized in the Czech Republic and then re-exported. The issue of balance of trade is yet to be adressed.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 7 Tourism In 2013 Korean Air acquired 44% share in Czech national airlines ČSA for 3,5 mil. USD. This acquisition and promotion of the direct link between Seoul and Prague will help to promote both destinations for tourism. Travel destination : Growing interests for Koreans to visit Czech Republic In 2014 – Korea placed on the 3 rd place in the number of tourists in the Czech Republic after USA and Japan. (not counting European countries) Korea takes 14 th place overall in number of tourist in the Czech Republic In 2014 – almost Koreans visited Czech Republic.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 8 Investments 2006 – Hyundai Motors signed a contract to build a build a construction factory in Nosovice. Yearly output is cars 2009 – Doosan Heavy Industries - acquisition of Skoda Power 2013 – Korean Air – bought 44% share of Czech Airlines 2014 – Hyundai Mobis – factory for headlights for automobile industry 2014 – Nexen Tire Corporation – production of tires for automobile industry Currently there are around 20 Korean companies in the Czech Republic. Their investments in the Czech Republic reached 2,5 billion USD. Korea is among the largest foreign investors in the Czech Republic - currently takes the fourth place with a share of 7% (after Germany with 24%, Japan with 14% and USA with 8%).

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 9 Foreign Trade Czech Republic and Republic of Korea ExportImportTurnoverBalance USD In thousands of USD. Source: Ministry of Industry and Trade

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 10 Future cooperation According to the Czech and Korean economies, the potential for strengthening the cooperation is in these fields: automobile industry; shipbuilding industry; environmental technology; modern bio- and nanotechnology; supply of food products (beer, dairy products, meat products); glassware products; nuclear energy; further development of tourism.

Ing. Petr Kulovaný Head of the Unit of Africa, Asia and Australia Trade and Economic Relations Between the Czech Republic and the Republic of Korea 11 Thank you for your attention