Daewoo and Samsung are among the 50 South Korean companies that learnt about investment opportunities in Colombia

The president of ProColombia, María Claudia Lacouture met with Colombian businessmen in South Korea to show trade opportunities between the two countries in the South Korea, Latin America and The Caribbean Business Summit.

ProColombia presented investment opportunities in Colombia to a group of 50 multinational companies from South Korea. These companies are of the same size as Daewoo, Samsung, Korea Expressway and Engine Biz team.

The president of ProColombia, María Claudia Lacouture, during her agenda in South Korea, along with the secretary of Commerce, Industry and Tourism, Cecilia Alvarez Correa, and the secretary of the Internal Revenue Service, Mauricio Cárdenas, as part of the national delegation of governors in the annual assembly of the Banco Interamericano de Desarrollo, BID [Inter-American Bank for Development], held meetings with companies in this country to present them with the offering of Colombian products in sectors such as cocoa by-products, fruit, cosmetics and leather manufacturing, taking advantage of the trade agreement between the two countries.

The investment material opportunities ProColombia identified in Korea are adjusted to the interests of South Korean business owners, such as infrastructure and road development, construction materials, vehicles and auto parts, BPO services, shared services, IT, Apps and food processing. 

According to Lacouture, there are also options in mega infrastructure projects led by the National Government such as 4G highways, where Asian business owners could contribute with their knowhow and experience. 

"Colombia is an interesting investment destination in Latin America for South Korea, not only due to the size of the market and the growth of the middle class, but also due to the possibilities it offers as a platform towards other markets thanks to current trade agreements. Proof of this is the growing number of this Asian country's companies that are investing in Colombia; 14 arrived in 2010, which increased to more than 40 in 2014," affirmed María Claudia Lacouture.

The agenda also included meetings with Fabrizio Opertti, head of the Investment and Business Unit at the Banco Interamericano de Desarrollo (BID), the Korean group CJ Group, conglomerated with businesses in various industries such as food, biotechnology, training, pharmaceuticals and resources and with presence in Europe, Asia and the Americas.

According to the balance of payments of the Banco de la República [Central Bank of Colombia], South Korea is the second largest investor from Asia in Colombia after Japan and had an accumulated total Direct Foreign Investment of US$176.8 million from 1994 to 2014.

Minister of Commerce, Industry and Tourism, Cecilia Alvarez Correa; ProColombia president, María Claudia Lacouture and the Ambassador of Colombia in South Korea, Tito Saul Pinilla, with Colombian businessmen in the South Korea, Latin America and the Caribbean Business Summit, as part of the board of governors of the Inter-American Development Bank – IDB.

The highest points of investment were registered in 2007 and 2012, when the number reached US$36.3 million and US$14.4 million respectively, mainly by the investors concentrated in the sectors of Transport, Commerce and Construction.

On the other hand, and according to FDI Markets data, unit of information analysis by the Financial Times, between 2003 and 2014 automotive assembly and consumer electronics led the list of sectors who received Greenfield projects from South Korea in Colombia, with a participation of 50% (4 projects) and 25% (2 projects) respectively, followed by auto parts and communications, each with a participation of 13%.

Export opportunities in Colombia

The possibilities to strengthen bilateral trade are provided by Colombian sectors with exportation potential. According to an analysis by ProColombia, there are at least 15 sub-sectors with opportunities in the South Korean market.

These opportunities were presented to business owners that assisted the Cumbre de Negocios de Latinoamérica y el Caribe [Latin American and Caribbean Business Summit] that was held in South Korea, parallel to the Asamblea de Gobernadores del BID [Assembly of BID Governors].

In agribusiness, for example, South Koreans demand products that Colombia offers such as oil and fat, sugar and honey, cocoa, cocoa by-products, flowers and foliage, fresh fruits, processed fruits and vegetables, ornamental fish, candy products and animal by-products.

The manufacturing sector demands promotional items, cosmetics, bathroom products, diverse products from chemical industries, pharmaceutical products and leather manufacturers.

Colombian exports to this market are also growing. According to information from the Ministry of Commerce, Industry and Tourism, with the data from DANE, sales excluding mining and coffee from Colombia in South Korea totaled US$64.5 million in 2014, 12% more than in 2013, mainly with exports related to metallurgy, fresh flowers, diverse food preparations and confectionery.