Powering prosperity: 50 years of energy and trade alliance between Oman and South Korea
The institutional framework supporting these business ties has been continuously enhanced. Key agreements, such as those for investment protection and avoiding double taxation, have solidified their economic exchanges. The Korea-GCC Free Trade Agreement concluded last year further strengthens this foundation, promoting greater trade and investment.
Published: 05:09 PM,Sep 07,2024 | EDITED : 08:09 PM,Sep 07,2024
Kiejoo Kim, South Korean Ambassador to the Sultanate of Oman and guests during the celebration of the 50th anniversary of diplomatic relations between Oman and South Korea.
MUSCAT: Celebrating 50 years of diplomatic relations, the Sultanate of Oman and South Korea mark their golden jubilee with a robust economic and strategic partnership. In an exclusive interview with the Oman Daily Observer, Kiejoo Kim, South Korean Ambassador to the Sultanate of Oman highlighted the profound ties between the two nations, particularly in the energy and trade sectors. Over the past five decades, South Korea has become Oman's third-largest trading partner, with a trade volume reaching $5.8 billion as of 2023.
Economic relationship and energy collaboration
Ambassador Kim emphasised the depth of their economic relationship, noting, 'Korea is now Oman's third-largest trading partner, with a trade volume reaching $5.8 billion as of last year.' This significant growth is largely driven by the energy sector, a cornerstone of their bilateral cooperation. Historically, liquefied natural gas (LNG) has been a key area of collaboration. 'The long-term LNG contracts have been mutually beneficial, supporting Korea's economic operation and Oman's LNG sector development,' he remarked.
Looking to the future, both nations are focusing on renewable energy, particularly green hydrogen. Ambassador Kim stated, 'Green hydrogen offers great potential for mutual benefit, aligning with our shared commitment to decarbonisation and net-zero emissions by 2050.'
Beyond energy, the construction and infrastructure sectors have flourished, with Korean firms bringing their expertise to major projects in Oman. The maritime industry has also been a significant area of collaboration. 'Korean shipbuilders have been instrumental in enhancing Oman's maritime capabilities with high-quality vessels,' noted Ambassador Kim.
The institutional framework supporting these business ties has been continuously enhanced. Key agreements, such as those for investment protection and avoiding double taxation, have solidified their economic exchanges. The Korea-GCC Free Trade Agreement concluded last year further strengthens this foundation, promoting greater trade and investment. Additionally, the Trade and Investment Promotion Framework (TIPF) between Korea and Oman serves as a guide for increasing mutual support and exchanges.
In terms of trade, LNG remains the top import from Oman to Korea, with $5.3 billion in imports. Korea also imports crude oil, petrochemical products, steel, and non-ferrous metals from Oman. Meanwhile, Korea exports steel products, automobiles, heavy construction equipment, and household electronics to Oman. The introduction of Korean electric vehicles into the Omani market underscores a shift towards environmentally sustainable products.
Support for business and strategic forums
The Korean Embassy in Oman, along with the Korea Trade and Investment Promotion Agency (KOTRA), plays a crucial role in supporting Korean businesses in Oman. Ambassador Kim explained, 'Information and networking are vital in business collaboration. The green hydrogen strategic forums that the embassy hosted in 2022 and 2023 have fostered strong partnerships in this sector.'
Looking ahead, the energy transition presents vast opportunities for Oman-Korea business relations. Beyond energy, sectors such as environmental technology, agriculture, water resources management, and ICT are set for growth. The embassy plans to organise forums and B2B engagements to capitalise on these opportunities.
Education and cultural exchange initiatives
Education and technology transfer are also pivotal for long-term partnerships. The Global Korea Scholarship (GKS) programme has supported Omani students, and exchange programmes are in place. Ambassador Kim expressed enthusiasm for these initiatives, saying, 'Education exchange is crucial as it benefits the future generation and enhances engagement.'
Cultural and sports exchanges further enrich the ties between Oman and South Korea. A number of cultural events, including last year’s K-pop festival held in Muscat, have strengthened people-to-people connections. These initiatives, alongside economic engagements, highlight the multifaceted relationship between the two nations.
Ambassador Kiejoo Kim expressed optimism about the future, stating, 'As we celebrate this milestone, we look forward to exploring new opportunities in renewable energy, technology, and other promising sectors.' The embassy is keen to leverage the 50th anniversary as a watershed, organising a variety of economic, cultural, and sports events to deepen the bilateral ties further.
One such event is a forum planned for later this year, where experts from both countries will collaborate on renewable energy projects. Additionally, a delegation of Korean firms specialising in water resources management will visit Oman to engage in business-to-business meetings, aiming to enhance cooperation in this critical area.
Cultural exchanges to be held in commemoration of the 50th anniversary will also play a significant role in strengthening the partnership. A musical performance on September 25 will feature a Korean traditional music band alongside Omani artists, fostering cultural understanding and appreciation. Furthermore, a Taekwondo Championship, organised in partnership with the Oman Taekwondo Committee, will take place from October 24 to 26, with participation from the World Taekwondo Headquarters in Korea.
These efforts underscore a commitment to not only consolidating economic ties but also enhancing cultural and social connections, paving the way for a vibrant and dynamic partnership between Oman and South Korea in the years to come.
Economic relationship and energy collaboration
Ambassador Kim emphasised the depth of their economic relationship, noting, 'Korea is now Oman's third-largest trading partner, with a trade volume reaching $5.8 billion as of last year.' This significant growth is largely driven by the energy sector, a cornerstone of their bilateral cooperation. Historically, liquefied natural gas (LNG) has been a key area of collaboration. 'The long-term LNG contracts have been mutually beneficial, supporting Korea's economic operation and Oman's LNG sector development,' he remarked.
Looking to the future, both nations are focusing on renewable energy, particularly green hydrogen. Ambassador Kim stated, 'Green hydrogen offers great potential for mutual benefit, aligning with our shared commitment to decarbonisation and net-zero emissions by 2050.'
Beyond energy, the construction and infrastructure sectors have flourished, with Korean firms bringing their expertise to major projects in Oman. The maritime industry has also been a significant area of collaboration. 'Korean shipbuilders have been instrumental in enhancing Oman's maritime capabilities with high-quality vessels,' noted Ambassador Kim.
The institutional framework supporting these business ties has been continuously enhanced. Key agreements, such as those for investment protection and avoiding double taxation, have solidified their economic exchanges. The Korea-GCC Free Trade Agreement concluded last year further strengthens this foundation, promoting greater trade and investment. Additionally, the Trade and Investment Promotion Framework (TIPF) between Korea and Oman serves as a guide for increasing mutual support and exchanges.
In terms of trade, LNG remains the top import from Oman to Korea, with $5.3 billion in imports. Korea also imports crude oil, petrochemical products, steel, and non-ferrous metals from Oman. Meanwhile, Korea exports steel products, automobiles, heavy construction equipment, and household electronics to Oman. The introduction of Korean electric vehicles into the Omani market underscores a shift towards environmentally sustainable products.
Support for business and strategic forums
The Korean Embassy in Oman, along with the Korea Trade and Investment Promotion Agency (KOTRA), plays a crucial role in supporting Korean businesses in Oman. Ambassador Kim explained, 'Information and networking are vital in business collaboration. The green hydrogen strategic forums that the embassy hosted in 2022 and 2023 have fostered strong partnerships in this sector.'
Looking ahead, the energy transition presents vast opportunities for Oman-Korea business relations. Beyond energy, sectors such as environmental technology, agriculture, water resources management, and ICT are set for growth. The embassy plans to organise forums and B2B engagements to capitalise on these opportunities.
Education and cultural exchange initiatives
Education and technology transfer are also pivotal for long-term partnerships. The Global Korea Scholarship (GKS) programme has supported Omani students, and exchange programmes are in place. Ambassador Kim expressed enthusiasm for these initiatives, saying, 'Education exchange is crucial as it benefits the future generation and enhances engagement.'
Cultural and sports exchanges further enrich the ties between Oman and South Korea. A number of cultural events, including last year’s K-pop festival held in Muscat, have strengthened people-to-people connections. These initiatives, alongside economic engagements, highlight the multifaceted relationship between the two nations.
Ambassador Kiejoo Kim expressed optimism about the future, stating, 'As we celebrate this milestone, we look forward to exploring new opportunities in renewable energy, technology, and other promising sectors.' The embassy is keen to leverage the 50th anniversary as a watershed, organising a variety of economic, cultural, and sports events to deepen the bilateral ties further.
One such event is a forum planned for later this year, where experts from both countries will collaborate on renewable energy projects. Additionally, a delegation of Korean firms specialising in water resources management will visit Oman to engage in business-to-business meetings, aiming to enhance cooperation in this critical area.
Cultural exchanges to be held in commemoration of the 50th anniversary will also play a significant role in strengthening the partnership. A musical performance on September 25 will feature a Korean traditional music band alongside Omani artists, fostering cultural understanding and appreciation. Furthermore, a Taekwondo Championship, organised in partnership with the Oman Taekwondo Committee, will take place from October 24 to 26, with participation from the World Taekwondo Headquarters in Korea.
These efforts underscore a commitment to not only consolidating economic ties but also enhancing cultural and social connections, paving the way for a vibrant and dynamic partnership between Oman and South Korea in the years to come.