FTA makes Cambodia attractive destination for S Korean investment

25 Dec '23

1 min read

Pic: Adobe Stock

Insights

The Cambodia-Korea Free Trade Agreement (CKFTA) marked its first year, boosting bilateral trade to $1.05 billion.
Cambodia's ambassador to South Korea highlighted the FTA's role, along with the 2021 New Investment Law, in attracting South Korean investment.
Cambodia is transitioning to a modern, digital economy, encouraging more Korean investments.

The Cambodia-Korea Free Trade Agreement (CKFTA) completed one year of entering into force this month. The FTA has resulted in increased bilateral trade between the two countries, reaching an all-time high of $1.05 billion, according to Chring Botum Rangsay, Cambodian ambassador to South Korea.

The FTA, along with the introduction of the New Investment Law in 2021, has created a more conducive environment making Cambodia an attractive destination for South Korean investment, Rangsay said while addressing the 2nd Cambodia-Korea Business and Investment Forum in Seoul recently.

Cambodian economy has traditionally relied primarily on agriculture, but it is now transitioning to a modern economy with growing number of industries and services, along with moving forward towards a digital economy, she said.

The two countries have mechanisms in place to promote economic, trade and investment relations, including the CKFTA, the double taxation agreement (DTA) and the Joint Economic Committee meeting. Further, both nations are members of the Regional Comprehensive Economic Partnership [RCEP] and the ASEAN-Korea Free Trade Agreement [AKFTA], which have been instrumental in fostering economic, trade and investment cooperation.

“We are ready to welcome investors and we encourage Korean investors to see the potential directly,” Rangsay added.

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