South Korea investing big into Panama

I for one am happy that we have South Korea investing heavily in the country. Even though only 1% of their exports come to Central America, 80% of that is to Panama. Of course it is then distributed throughout Latin America. But now they are putting real capital into the country with a number of projects, the largest, a 20% stake in the copper mine.

From La Prensa

ary Triny Zea
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The interest generated by the visit of Korean President Lee Myung-bak has been exploited by a Korean delegation of 60 people between entrepreneurs and officials, who will meet with Panamanian in the Korean Economic Cooperation Forum and the Central American Integration System (SICA .)

Some 15 executives from leading companies in South Korea as Samsung Electronics, Hyundai Motors Company, LS-Nikko Copper, Korean Air, Hanjin Shipping, Korea Federation of Textile Industries and The Export-Import Bank of Korea, will be in the country to "establish new business opportunities, or strengthen existing relationships," said Promotion Agency of Korea Trade and Investment in Panama.

Samsung Electronics has 21 years of operating successfully in Panama, the Hyundai brand is the second most in demand by the Panamanians and LS Nikko Copper keeps the interest of 20% stake Copper Project Panama. 

In addition, Panama is Korea's largest trading partner in the region, according to the Korea Institute for International Economic Policy (Kiep, for its acronym in English), and the fifth largest user of the waterway. 

Kiep figures show that 1% of Korean trade is for the region and 80% of it to Panama, where they receive their vehicles, appliances, flat screens, and in return, Panama will export raw materials such as aluminum.

Juneyoung Choi, international researchers Kiep, noted that the majority of Korean exports will not stay in Panama, but used the country as a hub for Latin America. 

The recent interest in investing in mining, services and the waterway are the aspects that interest the Korean government, and the visit of President Myung-bak is expected to strengthen China's trade relationship, whose rapid growth it due to exports. 

Panama has expressed interest in negotiating a free trade agreement with China, an issue that the forum will discuss Sica.  However, Young Wook Chun, the Office for Latin America and the Caribbean of the Ministry of Foreign Affairs and Trade, said that Korea currently negotiating agreements with eight countries, so it is unlikely that this year they do so with Panama.