As the Comprehensive Economic Partnership Agreement (CEPA) between South Korea and Thailand approaches completion, Thailand is looking to expand its collaboration with South Korea beyond tourism and trade into advanced industries, healthcare, defense, and supply chains. The goal is to elevate cooperation in future industries such as investment, digital technology, and defense.
In an interview on June 24 at the Thai Embassy in Yongsan, Seoul, Thai Ambassador Tanee Sangrat expressed his hope that South Korea would view Thailand not just as a tourist destination but as a strategic partner in innovation and advanced manufacturing. He stated, "Our cooperation must evolve beyond tourism and trade to focus on future industries."
Ambassador Sangrat emphasized that Thailand is accelerating the development of advanced manufacturing and digital industries to overcome its current low growth phase, with South Korea's technology, capital, and industrial experience playing a crucial role.
He noted, "South Korea is not only an important market for Thailand but also possesses global competitiveness in various fields, including semiconductors and advanced manufacturing. There is significant potential for collaboration in producing products aimed at the global market with Thai companies."
The ambassador highlighted the long-standing historical trust between the two nations, recalling that Thailand contributed 11,786 troops as part of the United Nations forces during the Korean War. He believes this shared history forms a solid foundation for current cooperation.
In light of the ongoing global supply chain restructuring due to U.S.-China tensions and instability in the Middle East, he stressed that Thailand could serve as a new production and investment hub for South Korean companies.
He pointed out, "There are substantial opportunities for collaboration in industries that require stable supply chains, such as automotive, computer parts, data centers, robotics, and defense." He identified the CEPA as a key task for economic cooperation and expressed optimism about finalizing the agreement within the year. "While there are a few issues remaining, both leaders share the same goal of concluding the agreement this year," he said.
Currently, trade between the two countries stands at approximately $15 billion. The ambassador projected that the CEPA could increase trade by $2 billion to $3 billion, with a long-term goal of expanding it to $30 billion. South Korea ranks as Thailand's 13th largest trading partner, while Thailand is South Korea's 16th largest.
He anticipates that the agreement will facilitate cooperation beyond trade into investment, digital industries, and supply chains. Additionally, he expects enhanced collaboration in logistics, industrial policy, and infrastructure based on memoranda of understanding (MOUs) for the development of smart industrial complexes and transportation.
Thailand is pursuing a transformation of its industrial structure centered on advanced manufacturing and digital innovation, guided by its national strategy, Thailand 4.0. From 2022 to 2027, the country is also implementing a national AI strategy and action plan to accelerate the development of the digital economy and future industries such as artificial intelligence (AI).
Ambassador Sangrat identified promising areas for cooperation, including the digital economy, semiconductors, AI, defense, biohealth, medical technology, wellness, and future foods. He stated, "South Korea's advanced manufacturing competitiveness will significantly aid Thailand's industrial advancement."
He also highlighted defense cooperation as a new avenue for collaboration, mentioning that the Defense Technology Institute of Thailand is developing a defense industrial complex in Kanchanaburi. He encouraged South Korean defense companies to consider investment opportunities in this area.
The Thai government is strengthening its defense manufacturing capabilities based on this industrial foundation. The ambassador expressed hope for participation from South Korean defense firms in the developing defense industrial complex in Thailand and indicated a commitment to actively attract investment in the Thai defense industry.
In addition to defense, he identified cybersecurity, disaster response, and humanitarian assistance as new fields for collaboration between the two nations. He remarked, "Cybersecurity is one of the most critical issues we face, and we must collaborate with South Korea and ASEAN countries to address it."
The silver economy was also highlighted as a promising area for cooperation. The ambassador noted, "Aging can present new opportunities, providing investment prospects for South Korean companies, Thai businesses, and foreign investors alike."
He pointed out that Thailand has already established itself as a medical hub attracting patients from the Middle East, Europe, Africa, and Asia. He anticipates that this will lead to expanded collaboration with South Korea across the entire senior-friendly industry, including medical devices, hospital infrastructure, senior housing, and elder care services.
Cooperation centered on startups is also on the rise. The Thai Embassy recently launched the Seoul-Thailand Startup Innovation Space (STSiS). Ambassador Sangrat explained, "This will support Thai startups entering the Korean market while also serving as a platform for Korean companies to expand into Thailand and the ASEAN market."
According to the Thai Ministry of Tourism and Sports, 1.55 million South Koreans visited Thailand last year, a 16.8% decrease from the record 1.87 million in the previous year. From January to May this year, the number was 539,848, down 7.6% from the same period last year. Despite this trend, Ambassador Sangrat expressed his hope that "Korean friends will not view Thailand solely as a tourist destination," adding, "Thailand is also a country of innovation and technology."
He further emphasized, "Thailand is not just a labor-supplying country but a modern economy equipped with innovation and technology," positioning it as a strategic partner for deeper cooperation with South Korea.
* This article has been translated by AI.
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