[Interview] Ambassador of Israel to Korea Harpaz: "Investing 4.5% of GDP in R&D is a remarkable figure"

"The economy has actually become stronger through the war"
"A unique system linking the military, industry, and academia is the engine of the economy"

Harpaz Raphael, Ambassador of Israel to Korea, is being interviewed by The Asia Business Daily at the embassy in Jongno-gu, Seoul. Reporter Jo Yongjun

Editor's noteForeign missions in Korea (embassies and consulates) are key diplomatic hubs that are closely linked to the Republic of Korea's international standing. More than 100 countries operate embassies, mainly in Seoul. Beyond the traditional realm of diplomacy, the scope of friendly cooperation has expanded into politics, the economy, culture, national defense, and science. Through interviews with ambassadors to Korea, we examine issues of international concern and diagnose the direction that Korean society needs to pursue.

Raphael Harpaz, Ambassador of Israel to Korea, said, "Israel invests about 4.5% of its gross domestic product (GDP) in research and development (R&D), which is a remarkable figure. Korea and Israel share very strong similarities and synergies at this point."

In an interview with The Asia Business Daily at the Embassy of Israel in Korea on January 28, he explained the background to how Israel's economy is booming even in wartime. Korea and Israel share the common traits of lacking natural resources and facing a challenging geopolitical environment. However, by sparing no effort in nurturing talent and investing in research and development, they are strong in cutting-edge technology industries. Israel has built its current international standing on perseverance and courage that do not fear failure and keep taking on new challenges.

Ambassador Harpaz stressed, "Among Israelis, there is a deeply rooted perception that 'it is okay to fail'." He said, "Nine out of ten startups fail, but we take it for granted that we will try again. Along with this culture, the unique system that links the military, industry, and academia is the engine of the Israeli economy."

The fact that NVIDIA, a global leader in AI, has decided to make a large-scale investment is also closely related to its confidence in Israel's potential. Ambassador Harpaz said, "NVIDIA is pushing ahead with the creation of a large-scale R&D campus near Haifa in northern Israel that can accommodate up to 10,000 people."

In general, during wartime, currency values and economic indicators plummet, but Israel's current economic situation has shown an unusually solid trend. According to the Central Bureau of Statistics (CBS) of Israel, the country's overall annual growth rate in 2023, when it was going through a wartime crisis, remained in positive territory. This trend continued in 2024 and 2025. At the outset of the war, the Bank of Israel immediately activated a plan to sell 30 billion dollars' worth of foreign exchange out of its 200 billion dollars in foreign reserves in order to defend the value of the shekel. As of January this year, Israel's foreign exchange reserves exceeded an all-time high of 233.04 billion dollars, building a powerful liquidity defense wall. Ambassador Harpaz said, "The (economy) has actually become stronger through the war," adding, "The fact that investment continues even during the war is a powerful sign of trust that the global market is sending to Israel."

The following is a Q&A with Ambassador Harpaz.

Raphael Harpaz, Ambassador of Israel to South Korea, is giving an interview to The Asia Business Daily at the embassy in Jongno-gu, Seoul. Photo by Cho Yongjun

-Israel has been at war for more than two years, yet its economy has remained solid.

▲Surprisingly, if you visit Israel now, it is hard to feel any void caused by the war. The Israeli economy is still booming, and our currency remains strong. Investors and tourists are returning, and the stock market is recording very high figures.

-What is the reason that Israel's economy and industries remain solid despite geopolitical instability?

▲First is government support and investment. Second is education, which is crucial for human resources and talent development. Third is globalization. Lastly, the culture of "chutzpa," which reflects the characteristics of Israelis, can be seen as the foundation of industrial success. Chutzpa is a horizontal and outspoken culture in which a young employee can confidently tell a boss, "You are wrong." Both men and women perform mandatory military service, and the advanced technologies and innovation capabilities learned in the military flow directly into the startup scene after discharge.

-NVIDIA has decided to make a large-scale investment in Israel.

▲Israel is a small country with a population of 10 million, yet global giants choose us because we are a giant of innovation. We provide unrivaled solutions in key technology fields such as cybersecurity, artificial intelligence (AI), quantum computing, and semiconductors. We do more than simply manufacture products; we create the core "intelligence" that goes into them.

-Israel is among the world leaders in R&D investment as a share of GDP.

▲Korea and Israel have both been included in "Pax Silica," a new international initiative being pursued by U.S. President Donald Trump. The process in which democratic countries like Korea and Israel cooperate safely will not be a one-off event but a long-term vision. If Israel's innovation is combined with Korea's manufacturing capabilities, it will produce a win-win outcome for both countries.

-How long do you think it will take to rebuild the Gaza Strip?

▲Rebuilding the Gaza Strip is not an issue for Israel alone to shoulder; it is a task that the international community and many countries must contribute to together. Of course, with about 80% of buildings in the Gaza Strip destroyed, reconstruction will not be easy, but if the conditions are met that Hamas is disarmed and the Gaza Strip is no longer controlled by a terrorist organization, we will support reconstruction.

-What does the "Board of Peace," a new international body led by President Trump, mean for Israel?

▲We very much welcome President Trump's plan, and Israel is participating in it. It is time to break away from a United Nations (UN) system that does not change. The UN is actually being used as a tool to criticize Israel by leveraging the power of the majority. Now is the time to transform this kind of multilateral system.

-Do you have any particular diplomatic focus in the Asian region?

▲In the past, when I served as Director of the Asia-Pacific Department at the Ministry of Foreign Affairs, I regarded countries like Korea as very valuable partners for Israel. Israel knows its own limitations and acknowledges that it is not perfect, but it will work with countries like Korea that share similar values to make up for its weaknesses. That is why our two countries can prosper together.

[Interview] Who is Raphael Harpaz, Ambassador of Israel to Korea?

Since the establishment of diplomatic relations on April 10, 1962, Israel has been a Middle Eastern hub of innovation that has maintained close cooperation with Korea in a wide range of fields, including IT, agriculture, and defense. Korea exports automobiles, home appliances, electrical products, synthetic resins, and construction heavy equipment, among others. In particular, Israel's economy, built on its high-tech industry, boasts a world-class scale.

The capital of Israel is Jerusalem. Judaism accounts for more than 74.2% of the population, followed by Islam at 18% and Christianity at 1.8%. As religious exchanges between Korea and Israel continue, mainly through Christianity, many Koreans visit Israel on pilgrimages to the Holy Land. There used to be a direct flight route from Incheon International Airport to Tel Aviv, but it was suspended due to the Hamas-Israel war. As El Al Israel Airlines, Israel's flag carrier, has confirmed a new service starting next year, the route is expected to resume. The time difference is 7 hours behind Korea (6 hours during daylight saving time).

According to "Overview of Israel (2025)" published by the Embassy of the Republic of Korea in Israel, the population will be 10.09 million in 2025. Of these, 7.73 million are Jews, 2.11 million are Arabs, and about 248,000 are foreigners. Hebrew is the official language, and Arabic and English are also used. Excluding the Golan Heights, East Jerusalem, Gaza, and the West Bank, Israel's area is 20,770 square kilometers, about one-tenth the size of the Korean Peninsula. Its terrain consists of plains, mountains, deserts, and coastline. The country is narrow and long, stretching 470 kilometers from north to south and 135 kilometers from east to west.

Raphael Harpaz, Ambassador of Israel to Korea, is a veteran career diplomat who has served for more than 35 years across Europe, Asia, Africa, and the Americas since joining the Ministry of Foreign Affairs in 1989. He majored in international relations at the Hebrew University of Jerusalem and graduated at the top of his class with a master's degree in diplomacy and security studies from Tel Aviv University.

Before joining the Ministry of Foreign Affairs, he had a unique career as a bank credit team leader. Ambassador Harpaz served as Deputy Head of Mission at the embassies in Switzerland and Sweden, Spokesperson at the Embassy in the United States, Ambassador to Azerbaijan, and Ambassador to the Philippines. At headquarters, he held key posts including Director of the Asia-Pacific Department, before taking up his post in Korea in 2024.