According to Ambassador Choe, bilateral relations have developed significantly in the political, economic, cultural and consular fields over these three decades. “In the field of economic cooperation, the greatest development is that in 2019, the Republic of Korea overtook Germany as the top source country of foreign direct investments in Hungary. Minister Szijjártó mentioned this as a ‘miracle’ in bilateral relations. Another indication of the fast growth in economic ties is the fact when you interviewed me for the previous Korea Focus in Diplomacy&Trade two years ago, I mentioned that the volume of bilateral trade in 2017 was USD 1.
Hungary not only borders on seven countries but it is also situated along the roads connecting Western Europe with the countries of the Western Balkans and with the Commonwealth of Independent States (CIS) formed after the dissolution of the Soviet Union. As examples, let me mention Celltrion Healthcare Hungary Kft., which has its headquarters in Hungary responsible for its operations in 16 countries, including those of the CIS and the markets of East Central Europe while the LG Electronics office in Budapest supervises the company’s activities in ten countries of the Western Balkans and East Central Europe.
9 billion (according to Korean statistics), while now, I can proudly say that this figure for 2019 was already USD three billion! While in 2017, there were 90 Korean companies in Hungary, their number in 2020 is 190. I would also like to emphasize the importance of launching a direct flight between the Republic of Korea and Hungary in 2019.
There is already a temporary place of commemoration there with a lot of candles as a sign of solidarity with the victims. The necessary permissions are being arranged and if all goes well, the memorial will be inaugurated later this year, I hope, ” Ambassador Choe says. He mentions that the court hearing in the case of the boat tragedy, first postponed due to the COVID-19 situation, has now resumed. Accused is the Ukrainian captain of the ship that collided with the Hableány. The second hearing has taken place this September.
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Last year, Korean companies accounted for 48% of all foreign direct investments in Hungary, which demonstrates the weight of Korean firms among foreign investors well. This was also appreciated by the Hungarian side that gave Samsung SDI the title of the largest foreign investor of 2019. At the same time, the company creating the most jobs in Hungary was given to SK Innovation. ”He adds that “currently, we are facing a turning point as car manufacturing is being shifted from the production of traditional cars to electric vehicles. Many Korean companies using this new technology have come to Hungary, which means – with the global automotive supply chain already available in this country – that these new electric vehicles investments will help the Hungarian economy in its transformation to the use and further improvement of new technologies.
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The reason must have been that the Hungarian government appreciated the Korean efforts introduced to combat the COVID-19 epidemic, while the importance of Korean investments was also a major factor in this decision, ” according to the Ambassador. Korean corporate presence in HungaryBasically, all globally important Korean companies are present on the Hungarian market: Samsung Electronics, Samsung SDI, Hankook Tire, SK Innovation, KDB Bank, LG Electronics, Lotte, Doosan and others. Ambassador Choe says that “of course, it is not only them who are here but also a wide circle of Korean suppliers that they cooperate with.
”Another factor is the investment incentives policy of the Hungarian government. The rate of corporate tax is low, there is a wide range of business incentive programs and some important companies are given VIP status, which allows them to process administrative issues much more simply. “This business-friendly policy can many times be a decisive factor when finalizing an investment project. All this makes it possible for Korean companies to operate in a safe and stable manner in Hungary, ” he points out. Coping with COVID-19 in businessThe pandemic situation has caused a lot of problems globally.
Ambassador Choe points out that when travel restrictions were introduced in Hungary, Korean companies were given exceptional treatment. As a result, many Korean companies were able to minimize negative effects of the travel restrictions. Later, the Republic of Korea was listed as a ‘green’ country. “After Hungary lifted travel restrictions for those from the countries of the Schengen zone at the end of June, the Republic of Korea was the first outside this group of countries that was granted similar treatment.
This can easily make Hungary one of the global centers of electric vehicle production. ” Aftermath of a boat tragedyThe sinking into the River Danube in the summer of 2019 of the Hableány tourist boat took the life of 25 Koreans in Budapest. The Korean Embassy works together with the Ministry of Foreign Affairs and Trade and the Budapest Municipality to cherish the memory of the victims of this very unfortunate incident. “As a result of trilateral dialog among these parties, a memorial will be set up to honor the victims. The venue of the memorial has been designated: it will be at the Pest side bridgehead of Margaret Bridge.
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