APD | South Korea, Russia to set up joint investment fund

By APD writer Alice

South Korea and Russia have agreed to launch a fund for the industrial materials and parts sectors, and to speed up free trade agreement (FTA) negotiations, according to Seoul's finance ministry.

During the recent annual meeting on economic cooperation between South Korea and Russia, held in Moscow, South Korean Finance Minister Hong Nam-ki proposed a US$1-billion joint fund to beef up the supply chain of industrial materials and parts by investing in core technologies.

The first batch of funding will amount to $400 million and gradually be expanded to invest in other areas, such as healthcare, down the road, the ministry added.

The two nations also agreed to speed up FTA negotiations in the service and investment sectors with a goal of striking the deal in 2020, as they seek to broaden partnerships on science, information and communications technology, and medical services, the ministry said.

The trade volume between the two countries has been growing sharply in recent decades to reach $24.8 billion last year, up from $190 million in 1992.

Seoul and Moscow also vowed to continue deeper cooperation in the "nine bridges," which include shipbuilding, natural gas, railways, electricity, agriculture, Arctic shipping routes, and fisheries.

(ASIA PACIFIC DAILY)