“PUBLIC SYMPOSIUMON THE OCCASION OF THE 67TH INDEPENDENCEANNIVERSARY OF THE REPUBLIC OF KOREA”

ORGANISED BY N.I.I.A.

NEW FLOWS OF FOREIGN DIRECT INVESTMENT

FROM SOUTH KOREA TO NIGERIA

 

PRESENTED BY H.E. DESMOND AKAWOR,

NIGERIA AMBASSADOR TO THE REPUBLIC OF KOREA

AUGUST 14, 2012. LAGOS.

1

1. Who are the Koreans?

(a) Pre-war Era

• 4,000 years History

• 1910 colonized by Japan

• 1945 liberated by allied forces at the end

of World War II

• 1950 North Invaded the South

• 1953 End of civil war

• Less than $1 per Capital Income at 1960’s

• One of the poorest Nation on earth and major aid-receiver.

2

Who are the Koreans?

(b) Post-war Era

• Model of post-war reconstruction and economic success

• Miracle on the Han River

• 50 million people on 99,373 Km2 peninsula between China and Japan.

3

2. Korea’s Trade Performance

(a)

4

Korea’s Trade Performance

(b) Current Areas of Core Competence

• Top class Intermodal Transport System

5

MS Oasis of the seas KTX Incheon Airport

Korea’s Trade Performance

• 2nd only to the USA in Oversea Construction

6

Burj Khalifa Twin Building in Malaysia 18.38 Km Incheon Bridge

Korea’s Trade Performance

• 1st in Shipbuilding

• 1st in ICT – development

• 3rd in Production of computer chips

• 3rd in Patent registration

• 4th in Production of Textiles

• 5th in Production of Automobile

7

Equus Chairman K9

Korea’s Trade Performance

• 5th in Production of Petrochemical

• 3rd Biggest steel plant (POSCO)

• Top in Electronic (Samsung, LG)

• Generates 70,000 MW of Power

8

Tablet 3D TV

3. New Major Areas of FDI from Korea

(a) POWER

• 20% equity investment in 10,000 MW power project by Daewoo E&C (5th

July 2012)

• KEPCO IPP (Egbin Power)

• Electrical transformer and hardware assembly plants

• 1,250 MW Abuja & Kaduna(KNOC deal)

• Nuclear Power – South Korea is set to become a major World nuclear

energy country, Exporting technology. Example UAE contract of $20 Bn.

Properly package build, own, operate-transfer model(BOOT).

9

New Major Areas of FDI from Korea

(b) SHIPYARD

• Ibaka deep seaport (Expression of interest)

• Brass LNG / Shipyard HHI / Daewoo

• Koko Oil & Gas Complex

10

New Major Areas of FDI from Korea

(c) AGRICULTURE (BIOFUEL & FOOD SECURITY)

• $11.3 billion (2030) for green growth development

• National Policy of mandatory use of B4(diesel blend by 3% of biodiesel by

2012 & B12 by 2030)

• Madagascar experience ($6.1 billion)

• Palm oil & maize - Import 1.2Million tons of maize for food

• 3rd largest corn buyer in the world

(library.fes.de/Pdf/bueros/indonesian/07267/pdf)

11

New Major Areas of FDI from Korea

(d) IRON & STEEL DEVELOPMENT

• Coal development

• Iron Ore Mining

(e) SECURITY

• Re-tooling of DICON (Expression of interest by LG-Security)

• Re-activation of styre truck plant for special vehicles

12

New Major Areas of FDI from Korea

(f) CONSTRUCTIN INDUSTRY

• Real Estate development

• Modify Ghana Experience

(g) OIL & GAS

• 5th largest net importer of oil in the world.

• 2nd largest importer of LNG gas

in the world behind Japan.

13

New Major Areas of FDI from Korea

(h) REFINERY & PETRO-CHEMICAL INDUSTRY

• South Korea developed efficient and integrated refineries and

petrochemical;

2.6 million barrel per day refinering capacity and 25 million tones per year of

petrochemical

• SK – Refinery

GS Caltex

Hanhwa

LG

Daelim ready for greenfield project at world class conditions.

14

New Major Areas of FDI from Korea

(i) DIASPORA FUND REFORM

$18 billion remittance into Nigeria in 2009 showed that this is an untapped

area of FDI (World Bank Report)

(j) EXPORT FREE ZONE AUTHORITY

Free trade zones are still the major special economic zones for

implementation of liberal market economy principles.

They are see as instruments to enhance the acceptability and credibility of

the transformation policies and to attract foreign investment

15

4. Recommendations for Fast-Tracking FDI From Korea

1. National Security - Internal Security

Internet advance free fraud scam

2. Financial Guarantee - Bank guarantee

3. Resolution of KNOC - NNPC dispute

4. Law on Avoidance of Double Taxation

5. FTZ - Stimulation of the activities of existing

FTZ, Industrial Park

6. Infrastructure - Transportation, Power

16

Recommendations for Fast-Tracking FDI From Korea

7. Hold regular Joint Commission

8. Direct Procurement Procedure for BOOT projects

9. Presidential Visits (Economic Diplomacy)

10. Pursue favourable labour agreement to attract more diaspora funds

11. Special Economic Incentives to attract investment into solid minerals

development (cushion the cost of transportation)

12. Registration of Genuine local partners with identifiable web site

17

THANK YOU

18