Korea and Cambodia Discuss Expanding Trade and Investment

Korea and Cambodia are set to enhance economic and trade cooperation based on their free trade agreement (FTA) and strengthen collaboration in future industrial sectors.

The Ministry of Trade, Industry and Energy announced that Yeo Han-goo, head of the Trade Negotiation Headquarters, met with Sun Chanthol, Cambodia's Deputy Prime Minister and First Vice Chairman of the Cambodian Development Council (CDC), on June 15 at the Korea Chamber of Commerce and Industry in Seoul to discuss ways to expand economic cooperation between the two countries.

The meeting was held at the request of Deputy Prime Minister Sun Chanthol, who was in South Korea to attend the '2026 Incheon-Cambodia Investment Roadshow.'

Both sides reviewed the implementation status of the Korea-Cambodia FTA and exchanged views on expanding investment, official development assistance (ODA), and international greenhouse gas reduction projects, among other economic cooperation initiatives.

Economic cooperation between Korea and Cambodia has been on the rise recently. The trade volume between the two countries increased from $966 million in 2021 to $1.163 billion last year, and the growth trend is continuing this year.

Cambodia is emerging as a new manufacturing hub in ASEAN, with steady investments from domestic companies in the manufacturing sector.

Yeo introduced the current status of the Korean government's ODA projects in Cambodia, particularly highlighting the 'TASK Center Development Project' aimed at enhancing the competitiveness of the food processing industry, as well as the ASEAN trade officials training program scheduled for the second half of this year.

In response, Deputy Prime Minister Sun Chanthol praised Korea's ODA projects for providing substantial support to Cambodia's industrial development and workforce training, expressing hopes for expanded cooperation.

The two countries also agreed to strengthen collaboration in the field of carbon neutrality. They shared the results of Korea's first international greenhouse gas reduction project in the industrial sector, which was approved by the Cambodian government last year, and agreed to expand cooperation in eco-friendly future industries such as green technology.

The Ministry plans to continue expanding economic cooperation between the two countries based on a strategic partnership and actively support local entry and investment activities by Korean companies.