April 24, 2024

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[THE INVESTOR] The first contact between Polish and Korean government officials took place in late October of 1988 following the Summer Olympics hosted in Seoul. A series of meetings in Korea between the ministries of foreign affairs, trade and sports ripened the conditions for diplomacy, at a time when Poland was still a communist country and Korea a domineered democracy.

Over the next 27 years, the two countries pushed forward their ties to become indispensable partners, sharing the commitment to human dignity, market economy and cultural diversity.

Diplomatic allies since 1989 and Strategic Partners since 2013, the two-way trade volume grew more than 53-fold to $3.7 billion last year. Korea is the second-largest Asian investor in Poland, while Poland is Korea’s largest investment market in Central and Eastern Europe and eighth-largest trade partner worldwide.

 

Caption: (From left) Polish Undersecretary of State Robert Grey, Korean Deputy Foreign Minister for Economic Affairs Lee Tae-ho, Polish Foreign Minister Witold Waszczykowski, Polish Ambassador to Korea Krzysztof Ignacy Majka, Polish Deputy Minister of Economic Development Tadeusz Koscinski, Polish Deputy Minister of Treasury Mikolaj Wild and Polish parliamentarian Tomasz Latos. The Korea Herald

Last week, the two governments signed the “Action Plan for the implementation of the Strategic Partnership” for 2017-20, outlining clear directions and guidelines for future cooperation.

“We are very pleased that Korean conglomerates are choosing Poland for investment,” Polish Foreign Minister Witold Waszczykowski said at a reception marking the 27 years of bilateral economic cooperation in Seoul on Wednesday.

“We perceive it as a validation of our market quality and our country as a gateway to Europe. We also see it as an appreciation of our people’s skills and experiences. Korean projects in Poland are complex and innovative, and contribute greatly to our economy by creating jobs and transferring knowledge.”

Particularly since the European Union-Korea free trade agreement came into force in 2011, Polish export to Korea has been steadily rising, he said.

On Tuesday, a maiden direct flight between Warsaw and Seoul was launched through LOT Polish Airlines’ Boeing 787 Dreamliner, which will offer nonstop service between the two cities three times a week, each way. Offering connections to nearly 60 European destinations, the air carrier -- providing the business class, premium economy class and economy class -- is expected to greatly reduce travel time while boosting tourism and commerce.

“A generation ago, Poland was a distant country from Korea behind the Iron Curtain,” said Lee Tae-ho, Korean Deputy Foreign Minister for Economic Affairs, in a speech. “Now, Poland is just one flight away. Vibrant people-to-people exchange and flow of goods and resources will pull our two countries even closer.”

Noting both nations have overcome geopolitical adversities to keep their identities, the minister argued that last year’s winning of the International Chopin Piano Competition by Korean pianist Cho Seong-jin was “possible only because Poland and Korea have walked similar historical paths, and Koreans have developed a profound understanding of Polish culture.”

“Poland is a drawbridge onto the European market and gateway for the Eurasia Initiative, Seoul’s foreign policy aimed at vitalizing connectivity between Europe and Asia,” Lee stressed. “Korea is also an open door to the Asian market for Polish products and services. With its strategic location in East Asia, Korea has free trade agreements with major markets worldwide, including China.”

Korean enterprises, chiefly LG Electronics, Samsung Electronics, Mando, Doosan Group, SK Chemicals and Korea Telecom, among others, have bankrolled investment in Poland, the largest economy in Central and Eastern Europe with a population of 38.5 million.

At the Poland-Korea Economic Forum on Wednesday morning, during which the Federation of Korean Industries and Employers of Poland signed a memorandum of understanding, FKI adviser Lee Youn-soo said Poland’s investment climate has continually improved, with the majority of Korean firms plowing capital into green field investment and manufacturing.

“Connecting Western and Eastern Europe, Poland has great potentials as a production and transport hub,” Lee asserted.

Poland, located in the heart of Central Europe, has 14 Special Economic Zones throughout the country that offer various tax exemptions. The country is the largest recipient of the European Union Funds with some $90 billion slotted for 2014-20.

Investment opportunities lie in automotive, aerospace, electronics, business services centers, research and development, information communications technology, renewable energy, biotechnology, electronic appliances, yachting and food sectors, according to Tadeusz Koscinski, Polish Deputy Minister of Economic Development.

By Joel Lee/The Korea Herald (joel@heraldcorp.com)