Yoon: "Building Core Mineral Partnerships with Africa... Need to Close Economic Distance" (Comprehensive)

'Korea-Africa Business Summit' Attendance
"Expecting Cooperation with Korean Companies for Energy Transition"
"Promoting Customized Development Cooperation to Meet ODA Demand"

President Yoon Suk-yeol is delivering the keynote speech at the opening ceremony of the '2024 Korea-Africa Business Summit' held at Lotte Hotel in Jung-gu, Seoul on the 5th. [Image source=Yonhap News]

President Yoon Suk-yeol stated on the 5th, "We aim to establish a 'Critical Minerals Partnership' with key African countries and expand mutually beneficial resource cooperation through the multilateral consultative body, the 'Critical Minerals Security Partnership' (MSP)." This reflects a proactive approach to mineral sector cooperation, especially as Africa's role gains attention amid growing global supply chain uncertainties caused by recent geopolitical risks.

President Yoon attended the '2024 Korea-Africa Business Summit' held at the Lotte Hotel in Seoul on the morning of the same day, coinciding with the Korea-Africa Summit. He said, "We must dramatically increase trade and investment to narrow the economic distance between Korea and Africa." The event, themed "Creating the Future Together: Shared Growth, Sustainability, and Solidarity," was organized to discuss ways to enhance economic cooperation between Korea and Africa.

In his keynote speech, President Yoon noted, "Korea-Africa cooperation, which began in 1961 with the establishment of diplomatic relations between Korea and six African countries, marks its 63rd year this year." He expressed gratitude to businesspeople, saying, "The entrepreneurial spirit of economic actors has been a valuable foundation for the Korea-Africa partnership."

He particularly emphasized, "Yesterday at the Korea-Africa Summit, I felt the strong determination of African leaders to enrich their nations and people," adding, "We will lay the institutional groundwork by concluding the Economic Partnership Agreement (EPA) and the Trade and Investment Promotion Framework (TIPF) to enable companies to smoothly engage in trade and investment activities."

He also stressed, "Climate change is a challenge faced by all, and transitioning to carbon-free energy (CFE) such as nuclear power, solar energy, and hydrogen is essential to address it," expressing hope for expanded cooperation with Korean companies in energy transition.

Furthermore, President Yoon said, "At the UN General Assembly last September, we pledged to expand South Korea's Official Development Assistance (ODA), and this year, the ODA budget has been increased by more than 30% compared to the previous year." He added, "We will pursue tailored development cooperation that meets the needs of recipient countries." He cited the K-Rice Belt project, which produces and distributes rice seeds with higher yields to African countries struggling with food self-sufficiency, as a representative example. "Last year, we harvested 2,300 tons of rice seeds, and we plan to increase the harvest to 10,000 tons by 2027," he explained.

In conclusion, President Yoon expressed, "I expect that the Korea-Africa Summit, held for the first time this time, will become a turning point for practical cooperation," and added, "I will take the lead in building a future that Korea and Africa create together."

"Korea Can Be an Ideal Strategic Partner for Africa"

President Yoon Suk-yeol attended the opening ceremony of the '2024 Korea-Africa Business Summit' held at Lotte Hotel in Jung-gu, Seoul on the 5th, applauding with Mohamed Ould Ghazouani, President of Mauritania and Chairperson of the African Union (AU). [Image source=Yonhap News]

Mohamed Ould Cheikh El Ghazouani, President of Mauritania and Chairperson of the African Union (AU), who co-chaired the Korea-Africa Summit, said, "The Korea-Africa Business Forum, held just hours after the historic Korea-Africa Summit, symbolically shows the path forward to strengthen economic relations between the two countries," adding, "It will help steadily grow trade and direct investment between Africa and Korea."

He also stated, "Korea can be the most ideal strategic partner for investment and partnerships to leverage Africa's opportunities," and welcomed initiatives aimed at infrastructure development support, trade promotion, investment encouragement, climate change mitigation, and sustainable development in Africa, saying, "Africa hopes to strengthen relations with Korea in key sectors."

He further added, "It is important to enable Korean companies to seize opportunities in the African market, especially in major sectors such as industrialization, agriculture, and the digital economy," expressing confidence that "through this, we will achieve inclusive and sustainable development."

The event was attended by African leaders including Mohamed Ould Cheikh El Ghazouani, Chairperson of the African Union and President of Mauritania, Alassane Ouattara, President of C?te d'Ivoire, as well as economic leaders such as Yoon Jin-sik, Chairman of the Korea International Trade Association, Wemkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), and over 400 government and business figures from Korea and Africa, including Chung Eui-sun, Chairman of Hyundai Motor Group, and Shin Dong-bin, Chairman of Lotte Group. From the government, Minister of Trade, Industry and Energy Ahn Duk-geun attended, along with Jang Ho-jin, Director of the National Security Office, Park Chun-seop, Senior Secretary for Economic Affairs, and Kim Tae-hyo, First Deputy Director for Security at the Presidential Office.

Korea-Africa Summit Establishes Foundation for Strategic Cooperation

President Yoon Suk-yeol is applauding at the opening ceremony of the '2024 Korea-Africa Business Summit' held on the 5th at Lotte Hotel in Jung-gu, Seoul.
[Image source=Yonhap News]

The Korea-Africa Summit, which was attended by 48 African heads of state and representatives and was held with great success, is evaluated as significant in that it established a strategic cooperation foundation between Korea and Africa for the first time in terms of supply chains, economy, and security. The launch of the permanent consultative body between Korea and Africa, the 'Critical Minerals Dialogue,' is a representative example. While Korea lacks mineral resources, Africa possesses many key raw materials for future industries such as nickel, chromium, and manganese. In a situation where the US-China conflict is intensifying and countries are increasingly 'weaponizing' resources, securing a stable mineral supply chain from Africa is expected to greatly benefit Korean companies in electric vehicles, batteries, and more.

Another achievement is the signing of Economic Partnership Agreements (EPA) and Trade and Investment Promotion Frameworks (TIPF) with African countries, which have a massive market of 1.4 billion people. Starting with a state luncheon with the President of Sierra Leone on the 31st of last month, President Yoon held a total of 25 summit meetings in succession, engaging in a relay of talks until this day. Africa, with 60% of its population under the age of 25, is a 'young' continent with a rapidly growing middle class possessing purchasing power. Countries like China and Japan have already recognized Africa's potential and are actively investing. President Yoon's significant increase of ODA to Africa to 10 billion USD is interpreted as a declaration of intent not to lose leadership in the African market. The government plans to encourage Korean companies' entry into Africa through export financing support amounting to 14 billion USD.

Africa, which accounts for more than a quarter of UN member states, is also expected to help increase Korea's diplomatic influence on the international stage. As seen in the failed bid for the Busan Expo, the importance of the 'Global South,' including Africa, is growing. For Korea, which is striving to move beyond diplomacy centered on the four major powers and to leap forward as a global pivotal state, Africa is not a choice but a necessity. In particular, the government views diplomatic cooperation with Africa as also helpful in resolving North Korean issues, including the implementation of UN sanctions on North Korea and achieving denuclearization of the Korean Peninsula.