[Square] Greece 2.0, A New Opportunity for Cooperation

[Asia Economy] "Oh! Why does the cityscape look like this?" I expected rows of ancient buildings, but the first impression of Athens was a modern cityscape.

It makes sense because Athens was only actively developed after being designated as the capital of the newly established nation in 1834, following 400 years of Ottoman Turkish rule and the War of Independence in 1821.

Athens, which flourished in the 5th century BC, was buried with the decline of the Roman Empire and reemerged with Greece's independence. When thinking of Greece, the birthplace of democracy and the cradle of Western civilization come to mind first.

However, the image of the Greek people suffering economic hardships while receiving bailout support three times in 2010, 2012, and 2015 from the European Union (EU) and the International Monetary Fund (IMF) is also vivid. Having experienced the 1997 foreign exchange crisis, we can roughly imagine how difficult it must have been for the Greek people to endure three rounds of bailouts and restructuring.

The current Mitsotakis government, inaugurated in 2019 with reform tasks inherited, is making Greece a leading country in economic reform. According to recent data from the multinational accounting firm Ernest & Young, the number of foreign direct investment cases in Greece increased by 77% in 2020 compared to the previous year.

It is noteworthy that investment flowed into Greece even during the period when the global economy was hit by COVID-19. At the Greece Investment Forum held in July, the Greek Finance Minister cited the European Commission's forecast, expecting Greece's economic growth rate next year to exceed the European average of 4.5% to reach 6%, foreign direct investment to Greece to surpass the European average of 5% at 15%, and exports to increase by 8%, exceeding the European average of 0%.

The Greece 2.0 economic recovery plan for the post-COVID era includes future projects worth 30.5 billion euros, including green and digital transition initiatives. Execution of 7.5 billion euros is planned by the end of this year.

Greece shows great interest in cooperation with Korea, which is advancing not only in compressed economic growth but also in future industries such as semiconductors, batteries, and biotechnology. Last month, the president of the Greek Veterans Association who attended the Korean War commemoration expressed regret over the low interest of Korean companies in Greece, a geopolitical gateway to the European market and a link to the Middle East and North Africa. He added that he hopes Korean companies will take note of China's moves, which recognized the strategic value of Piraeus, the largest southern port, and secured its operating rights.

Greece participated in the Korean War, defending our freedom and democracy, and in the early 1970s, believing in Korea's development potential despite limited experience in building large ships, entrusted the construction of two oil tankers to Korea.

The famous anecdote that Chairman Chung Ju-young showed the Turtle Ship on our 500 won bill to emphasize the excellence of Korean shipbuilding technology is well known. A Greek shipping company executive I met last June still remembered that story despite the long time that has passed.

This shipbuilding cooperation, which started this way, has continued to this day and served as a catalyst for the development of our heavy industries. Last year, about 66% (41 ships) of the ships ordered by Greece and all recently ordered liquefied natural gas (LNG) ships were contracted to Korean companies. Of course, through this, our companies support the status of Greece as a world-class maritime nation.

Located on the same 38-degree latitude, Greece shares many similarities with Korea in its social development path, including ideological confrontations between left and right, civil war, military government, and democratization after colonial rule.

Now, as Greece is busy transforming into a more advanced society, I look forward to more interest and participation from our globally competitive companies in Greece's journey.

Lee Jeong-il, Ambassador of the Republic of Korea to Greece