Egypt, South Korea mark 30 years of deepening ties in trade, investment and defence

Daily News Egypt

13-04-2025

Egypt and South Korea today commemorate 30 years of diplomatic relations, marking a period of significant growth in trade, investment, and defence cooperation. This anniversary, which falls in April 2025, provides an opportunity to reflect on the evolution of a partnership that has expanded from initial consular ties to a comprehensive cooperative framework.
The relationship, formalised on 13 April 1995, followed the establishment of consular relations in 1961, with the opening of South Korea's consulate general in Cairo in 1962 and Egypt's in Seoul in 1991. The period since 1995 has seen the institutionalisation of cooperation through agreements and joint committees, including the Political Consultations Committee (1996) and the Joint Committee in communications and technology (2004).
Trade Dynamics
Bilateral trade volumes have fluctuated, with recent data indicating $2bn in 2023, down from $3.2bn in 2022. Discrepancies exist between reported figures, with Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS) reporting $3.9bn in 2022. Trade balances have also varied, with Egypt achieving a surplus in 2022, but data from the Observatory of Economic Complexity (OEC) showing a deficit favouring South Korea in 2023.
Egypt's primary exports include fuel and mineral oils, food industry waste, and stone and cement products. South Korea's exports to Egypt consist of plastics, vehicles, machinery, and electrical appliances. Ongoing feasibility studies for a bilateral free trade agreement and a memorandum of understanding on customs cooperation aim to further enhance trade.
Investment Landscape
South Korean investments in Egypt, totalling nearly $800m, focus on manufacturing, transportation, chemicals, and energy. Major investments include Samsung Electronics' manufacturing facility and Hyundai Rotem's involvement in the Cairo Metro. South Korea has also increased its soft loan pledge to Egypt from $1bn to $3bn. Egyptian investments in South Korea are comparatively lower.
Bilateral investment treaties and double taxation avoidance agreements, alongside Egyptian incentive packages, facilitate investment flows.
Defence and Security Cooperation
Defence cooperation has become a key pillar of the relationship, with a $1.66bn deal for Egypt's acquisition of K9 Thunder self-propelled howitzers from Hanwha Defense, including technology transfer and local manufacturing. Hanwha Systems is also exporting fire command systems to Egypt. Discussions are ongoing regarding the potential sale of KAI FA-50 light fighter aircraft.
Agreements on defence industry cooperation and logistics support, alongside joint research and development, underscore a deepening strategic alliance. Egypt aims to modernise its military and diversify arms procurement, while South Korea views Egypt as a strategic gateway for defence exports.
Diplomatic Engagements and Cultural Exchange
Official statements and high-level visits, including President Moon Jae-in's visit to Egypt in 2022 and President Abdel Fattah Al-Sisi's visit to South Korea in 2016, have strengthened bilateral ties. Egypt's participation in the Korea-Africa Summit in 2024 further solidified its strategic importance to South Korea.
The growing popularity of Korean culture in Egypt, supported by the Korean Cultural Center in Cairo, fosters people-to-people connections. Egypt's strategic location and alignment with South Korea's expertise in smart infrastructure and digital governance further enhance the partnership.
The 30th anniversary highlights the robust and evolving relationship between Egypt and South Korea, with potential for further growth in key sectors and continued collaboration on regional and global issues.