Economic Cooperation between South Korea and Kazakhstan
Economic Cooperation between South Korea and Kazakhstan
Economic Cooperation between South Korea and Kazakhstan
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
U.S.‐<strong>Korea</strong> Institute Working Paper Series<strong>Economic</strong> <strong>Cooperation</strong> <strong>between</strong> <strong>South</strong> <strong>Korea</strong> <strong>and</strong> <strong>Kazakhstan</strong>world), but ranked 20th in 2008 (0.95 percent of the total <strong>Korea</strong>n FDI to the world). Although the amount of <strong>South</strong> <strong>Korea</strong>ninvestment to <strong>Kazakhstan</strong> is still relatively low, <strong>Kazakhstan</strong>’s importance to <strong>South</strong> <strong>Korea</strong> is steadily rising.Table 6: <strong>South</strong> <strong>Korea</strong> <strong>and</strong> <strong>Kazakhstan</strong> Investment Trend (USD 1,000 per Case)Year 2003 2004 2005 2006 2007 2008 AccumulationNo. of Reported6 25 32 62 127 65 370CasesNo. of NewCorp.InvestedAmount4 9 19 26 42 27 15913,820 22,527 29,570 264,379 321,078 206,654 976,549Note: The number of reported cases includes the number of common investment cases <strong>and</strong> the number of increased amount cases.Source: The Export-Import Bank of <strong>Korea</strong>.Initially, <strong>South</strong> <strong>Korea</strong>’s investment in <strong>Kazakhstan</strong> was concentrated on low-wage manufacturing industries to promote exports.Now, investment is focused on construction, real estate <strong>and</strong> leasing services, as well as resource development <strong>and</strong> mining.Most recently, the scope of investment has been exp<strong>and</strong>ing into finance <strong>and</strong> insurance, technology, leisure-related services,<strong>and</strong> more. The increase in the amount of investment <strong>and</strong> cases after 2006 resulted from <strong>South</strong> <strong>Korea</strong>’s active investmentin real estate <strong>and</strong> leasing services <strong>and</strong> construction of large-scale housing complex.Figure 2: Comparison <strong>between</strong> <strong>South</strong> <strong>Korea</strong>’s investment in <strong>Kazakhstan</strong> in 2001 <strong>and</strong> 2008 by Category of Business2001 2008Note: The relative importance of invested category of business is based on the invested amount.Source: The Export-Import Bank of <strong>Korea</strong>.<strong>South</strong> <strong>Korea</strong>’s investment in <strong>Kazakhstan</strong> is mostly by small <strong>and</strong> medium enterprises (SMEs) rather than by large corporations.As of the end of 2008, the investment rate of SMEs made up 73.7 percent of the total accumulated investment. FDI from<strong>South</strong> <strong>Korea</strong>n SMEs in <strong>Kazakhstan</strong> was USD 104.2 million, whereas the amount of investment by large corporations recordedUSD 91.59 million. However, in 2008, <strong>Kazakhstan</strong>’s credit crunch <strong>and</strong> economic slowdown reduced 60 percent ofthe investment by SMEs, compared to the previous year.Lee Jae‐young 9
Change language