Embassy of the Republic of Korea in Egypt

Ways To Develop Korean-Egyptian Relations

BY

Sondos Ahmed Ali

Year: 2018-2019

Phone number: 01125398501

E-Mail: sondos.ahm.ali@gmail.com

Sondos.ahmed2017@feps.edu.eg
Researcher: Sondos Ahmed Ali
Title: Ways To Develop Korean-Egyptian Relations
Research focus: Economics relations between South Korea and Egypt
School: Faculty of Economics and Political Science, Economics Department, Cairo
University

Student Level: Ungraduated Student

Abstract:

. In the age of globalization and economic openness, Egyptian-Korean relations have been established
over time in all fields. South Korea is a prime example of Egypt because it proved its resistance to collapse
and its support for international cooperation in various fields and science, as we will explain in this paper.
South Korea has a big influence on the African continent, including Egypt, where it was a model of
industrial and commercial development and achieved remarkable successes in import and export with
Egypt
During these years, the Korean investments increased in Egypt, which helped to establish giant projects
such as The Qattara Depression project and the provision of petroleum resources through contributing to
oil and fuel refining companies.
Both Egypt and Korea share common goals for sustainable development and plan 2030 to increase growth
rates from all aspects.
It is known that the largest volume of Korean investments abroad in the field of financial service, Egypt is
also keen to cooperate, especially as it is on the course of Korea in the development of financial service for
citizens.
Egypt and Korea have succeeded in cooperating through technological and information exchange, product
development, youth empowerment and innovation in entrepreneurship.
Both countries have development and progress, but participation in international relations and alliances is
the basis of success. It is our hope that such countries will seek a better future for them, for their citizens
and for the whole world.
Contents
I. Preface ...............................................................................................................................1
II. Korea Invests In Egypt Economic Sectors...........................................................................3
A. The Egyptian New FDI Law ...........................................................................................3
B. The sectoral distribution and South Korea outward FDI: .................................................6
1. The total FDI in the Egyptian sectors ...........................................................................6
2. South Korea outward FDI ............................................................................................7
3. South Korea invests in Egypt’s PPP .............................................................................9
C. International Finance ..................................................................................................... 10
III. Foreign trade Exports and import .................................................................................. 12
A. Foreign trade benefits in Korean-Egyptian relations ...................................................... 12
B. Foreign trade according to Egypt sectors ....................................................................... 13
1. Privet Sector .............................................................................................................. 14
2. The Investment Sector ............................................................................................... 14
3. The Public Sector ...................................................................................................... 14
C. Foreign trade (South Korea VS East Asia & Pacifica) ................................................... 15
D. Egypt Imports from South Korea and the world ............................................................ 16
E. Egypt’s Exports to South Korea and the world .............................................................. 18
F. Korea Asian tiger in Motorcars trading ......................................................................... 20
G. ICT Goods trading ........................................................................................................ 20
IV. Agriculture Sector ......................................................................................................... 21
A. Common SDGS in the Agriculture sector ...................................................................... 21
B. South Korean experience in Africa Agricultural Technology ......................................... 22
C. The major problems of Agriculture are related to Egyptian society ................................ 23
D. Egypt - Agricultural land ............................................................................................... 23
E. Egypt - Crop production index ...................................................................................... 24
V. Energy Sector ................................................................................................................... 26
A. Electricity production .................................................................................................... 26
1. Non-renewable energy ............................................................................................... 27
 2. Renewable Energy: .................................................................................................... 28
VI. Technology ................................................................................................................... 29
A. Telecommunications ..................................................................................................... 29
B. Information communication technology ( ICT) ............................................................. 30
C. Technical Education ...................................................................................................... 31
VII. Entrepreneurship and innovation century ...................................................................... 31
A. The core meaning of Entrepreneurship .......................................................................... 31
B. IDE VS SMEs ............................................................................................................... 31
C. Egyptian Startups Need to Korean Experience .............................................................. 33
VIII. Final Words .................................................................................................................. 35
IX. Work Cite ..................................................................................................................... 36
Bibliography..................................................................................................................... 36
I. Preface

.South Koreans use the term ‘the Miracle at the Han River’ to describe their economic growth since
the Korean War. In the 1960s, South Korea’s Gross Domestic Product (GDP) per capita equaled that of
poorer countries in Africa and Asia. Today, it’s GDP at the official exchange rate (OER) is the US
$1.538 trillion, ranking it as the 4th largest Economy in Asia and the world’s 11th largest economy; its
unemployment sits at 3.8%; and, its Human Development. (Mundi)

Since April 13, 1995, Egypt–South Korean relations Increased strength. Both countries established
diplomatic relations. Egypt has an embassy in Seoul and South Korea has an embassy in Cairo. The
leaders of South Korea and Egypt agreed Wednesday to further improve the countries' ties while
expanding their bilateral cooperation to many sectors and industries: Investment, Agriculture, Trading,
Technology. This Research paper is an explanation of the Egyptian-Korean relations in light of the
current and past economic years, from which we can learn from the experiences and know the extent of
cooperation between the two countries and how the South Korean economic influence in Egypt

In 2016, The Egyptian-South Korean Business Forum kicked off in Cairo. A South Korean delegation
comprising representatives of Hana Bank, the South Korean Federation of Small and Medium-Sized
Enterprises and the Seoul International Women's Association is participating in the forum in addition to
a number of well-known companies, notably Hyundai Cars, Samsung and SGS Construction. Korean
companies are keen to increase and develop their business and investments in Egypt, in the light of the
promising opportunities provided by the various projects launched and carried out by Egypt, as well as
its distinguished geographical location, the abundance of personnel and the mammoth exporting
potentials within the framework of free trade agreements between Egypt and many countries in Africa,
Europe and the Arab region.

There are many policies can Egypt Learn from the Korean experience. When comparing government
economic policies in the two countries, on would note that up until the 1960's, both Egypt and Korea
followed similar policies of import substitution industrialization, yet Egypt's per capita income was
substantially higher and the development of its manufacturing industry was ahead of that of Korea.
Starting from the early 1960's, however, the course of Egyptian and Korean development started to
diverge with a remarkably higher real GDP and manufacturing growth in Korea (9.6% and 18.3%) as
opposed to Egypt (only 3.4% and 3.5%) over the period 1963/4-1972/3. During the boom era of the
1970s and the first half of the 1980s, GDP growth in Egypt reached the same levels as (or even slightly
outpaced) that in Korea, yet manufacturing growth continued to lag behind three main factors have been
highlighted in the literature as accounting for these differences in growth rates.

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During the boom era of the 1970s and the first half of the 1980s, GDP growth in Egypt reached the same
levels as (or even slightly outpaced) that in Korea, yet manufacturing growth continued to lag behind.
Three main factors have been highlighted for these differences in growth rates.

1. There was a difference in the development strategies pursued by the two countries. Egypt continued
more fiercely on the road of import-substitution led by a dominant public sector following the 1961
nationalizations; whilst Korea shifted early towards an export-oriented strategy based on exploiting
its abundant and relatively skilled labor force. It is important to note, however, that the era of labor-
intensive industrialization was pursued in Korea only for a decade or so (that is during the 1960s). In
1973, a heavy and chemicals industrialization (HCI) program was announced, and during the Third
and Fourth Five Year Plans Plan (1972-81), chemicals, steel, machinery, shipbuilding, and electronics
were designated as priority sectors. This ambitious HCI program resulted in an even further
acceleration of manufacturing growth between the two oil shocks (1973-8) at a time when all other
major NICs experienced a substantial slowdown in their manufacturing growth. (Industrial Policy and
the Role of the State in Egypt)

2. The large domestic investment in physical and human capital and the role of foreign direct
investment have been highlighted as major determinants of the Korean industrial success.
On the human development front, one can compare some important measures of educational
wealth and investment in education in Egypt and Korea, educational wealth can be
approximated by the mean years of schooling received per person aged 25 years and over,
which is only 3 years in Egypt compared to 9.3 in Korea. Quality of educational wealth can
be approximated by the number of R&D scientists and technicians as a percentage of the
total population which is almost four times as large in Korea than in Egypt

3. Macroeconomic management and enterprise Building as two areas State interventions have been
extremely effective in providing a rare Korean combination is what is mostly a private sector
economy manipulated Performance of publicly selected goals. Intervention in the context of a
private institution by selecting policy instruments selectively, Development of specialized and
effective public institutions (in the fields of planning, training, management training, applied and
technical research for the industry, Exchange of information between manufacturing companies and
between them and the State)

These days, the economic relations between Egypt and South Korea are becoming increasingly
interdependent, especially with the increase in the number of branches of Korean companies in Egypt
like Samsung, LG, GS, and Doosan …

The volume of trade reached over 1.4 billion dollars, in addition to the exchange of knowledge in the
field of technology, development and information system. Egypt takes Korea as an example of progress
and application of new ways to increase the rate of development and reduce unemployment rates and
increase GDP through investment in Korea or develop strategic plans for our 2030 Future.

2
II. Korea Invests In Egypt Economic Sectors
A. The Egyptian New FDI Law

As part of the efforts done by the Egyptian Government to boost the economy, a new investment law is
basically an attempt to boost the Egyptian economy, by attracting foreign investors and making things
easier by reducing the barriers of how they operate in Egypt, hoping to offer job opportunities, expand
domestic production, increase exports and Egypt’s competitive edge.

The foreign direct investment (FDI) has risen 14.5% reaching $7.9 billion in the financial year
2016/2017 compared to $6.9 billion in the 2015/2016 financial year. According to Finance Minister Amr
El Garhy expects foreign direct investment in Egypt to grow by 20-25% in the financial year 2018-19.
(Egypt M. o., 2017, p. 2)

The net FDI in Egypt from 2010-2017

In addition, there are several features that are aimed directly at attracting significant and targeted
investments, such as receiving 2% tax reduction on the value of imported machinery, and up to 50%
discount off investments costs. It is a win-win situation for Investors need to come to Egypt to make
good returns and the country needs to make use of that as well, in terms of hiring people, labor and
reducing the unemployment rate.

Advantages for FDI in Egypt:

 Strategic geographic location

 Low-cost and relatively qualified labor force
 Growing population (more than 95 million inhabitants) that makes Egypt a
strategic market in the region

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  High tourism potential
 Important energy resources, notably natural gas
 Public works policy, which offers many investment opportunities to foreign
companies
 A sufficiently diversified economy (energy, tourism, Suez Canal revenues,
industrial base, etc.)
 Government policy that aims at improving the business climate

Source : (CEIC, 2018)

Egypt's Foreign Direct Investment (FDI) increased by 2.3 USD bn in Mar 2018, compared with an
increase of 1.9 USD bn in the previous quarter. This is a good indicator of the investment recovery in
Egypt and the implementation of strategic plans after a long period of political and economic crises. This
was a result of the hike in net inflows of oil sector investments by US$ 341.4 million, reaching US$
495.5 million (against US$ 154.1 million). Add to this the rise in net Greenfield investments by 23.9
percent, to US$ 1.4 billion (against US$ 1.1billion).

4
 In addition to the advantages of the new investment law which provides investment opportunities in
Egypt and achieve high profit. Egypt has become one of the most important countries attracting investors
such as South Korea.

According to the central bank statistics, Current Account recorded a deficit of 1.9 USD bn in Mar 2018.
Egypt's Direct Investment Abroad expanded by 68.1 USD mn in Mar 2018. It’s Foreign Portfolio
Investment increased by 6.9 USD bn in Mar 2018 and increased to 71.2 USD bn in Jun 2018. The
country's Nominal GDP was reported at 59.7 USD bn in Mar 2018. This is also a good indicator of the
success of economic policies in overcoming crises and expanding investment abroad. Egypt focuses on
achieving strong international relations in all economic aspects and thus achieving the highest revenue.

FDI Flows 2005-2007 2014 2015 2016 2017

Egypt inward 8 999 4 612 6 925 8 107 7 392

World Inward 1 415 431 1 338 532 1 921 306 1 867 533 1 429 807

Egypt outward 302 253 182 207 199

world outward 1 451 593 1 262 007 1 621 890 1 473 283 1 429 972

FDI Flows Egypt VS World, source: UNTCD. (Millions of Dollars)

According to the table Above, Foreign direct investment is slumping around the world in 2017. World
Investment Report shows global FDI fell 23% in 2017. Egypt was the top destination for FDI in Africa
in 2016 but still fell 8.8% to USD 7.4 bn. Investment Law is coming into effect, which should promote
domestic and further investment by offering further incentives, reducing bureaucracy and simplifying
administrative processes (UNTCD, 2017)

5
B. The sectoral distribution and South Korea outward FDI:

1. The total FDI in the Egyptian sectors

Source : (Egypt C. B., 2017)

During July/Sept. 2016/2017, the capital and financial account achieved a net inflow of US$ 7.9 billion
(against US$ 1.6 billion), as a reflection of the following developments:

 The net inflow of FDI in Egypt scaled up to US$ 1.9 billion (against US$ 1.4 billion). This was a
result of the hike in net inflows of oil sector investments by US$ 341.4 million, reaching US$
495.5 million (against US$ 154.1 million). Add to this the rise in net Greenfield investments by
23.9 % to US$ 1.4 billion (against US$ 1.1 billion).

 Portfolio investment in Egypt achieved a net outflow of US$ 840.9 million (against US$ 1.4
billion). This was primarily due to the Egyptian authorities' repayment of bonds that had fallen
due in the reporting period in the amount of US$ 1.0 billion (outflow).

 Medium- and long-term loans and facilities unfolded net disbursements of US$ 855.5 million
(against net repayments of US$ 573.0 million), as an outcome of the increase in total
disbursements to US$ 1.8 billion (against US$ 311.1 million) and in total repayments to US$
976.2 million (against US$ 884.1 million).

6
  Short-term suppliers' credit posted net disbursements of US$ 454.8 million (against US$ 1.4
billion
 Other assets and liabilities (the change in banks' foreign assets and liabilities; the CBE non-
reserve foreign assets and foreign liabilities; and the counterpart to some items included in the
current account) recorded a net inflow of US$ 4.8 billion (against US$ 915.3 million). This was
primarily a result of the pickup in the net change in liabilities of the CBE to the external world,
registering a net inflow of US$ 3.4 billion in the reporting period (against US$ 1.2 million).

 The net change in banks' liabilities rose, recording as such a net inflow of US$ 1.6 billion
(against US$ 668.9 million). (Egypt C. B., 2017)

2. South Korea outward FDI

Korea's Direct Investment abroad expanded by 6.3 USD bn in May 2018, compared with a growth of 2.1
USD bn in the previous month. It is available from Jan 1980 to May 2018 and averaged 305.7 USD mn
throughout the period. The country's Nominal GDP was reported at 410.6 USD bn in Mar 2018.

7
According to this statistics, South Korea has a great opportunity to invest in any country with this
GDP.This increasing in Direct investment abroad in indicator for south kore business activities abroad
and its economic policies for achieving Macroeconomics goals which are Increasing at an increasing rate
according to statistics from the Bank of Korea. (CEIC, 2018)

Profile of Outward Investment - Republic of Korea

Industry Outflow 2016

Total (merchandise and services) 30,507.60
Finance 5,343.00
Motor vehicles and other transport equipment 4,463.90
Wholesale and retail trade 2,580.10
Chemicals and chemical products 1,317.70
Other manufacturing 1,216.30
Construction 778
Food, beverages, and tobacco 587.9
Metal and metal products 521.2
Textiles, clothing, and leather 444.2
Hotels and restaurants 401
Rubber and plastic products 334.6
Coke, petroleum products and nuclear fuel 34.2
Other services 12.7
Education 11.1

Source: itc (ITC, 2017)

Source: (ITC, 2017)

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It is clear South Korea focus on increasing outward FDI in The tertiary sector of the economy is also
known as the service industry. This sector sells the goods produced by the secondary sector and provides
commercial services to both the general population and to businesses in all five economic sectors. South
Korea’s activities associated with this sector include Finance (17.5%), Wholesale and retail trade
(14.6%), Construction (2.5%), Hotels and restaurants (1.3%), Education (0.03%), other services (0.04%).
the outward in this sector reached 35.97% From the total outward FDI (30,507.60 $US bn) in 2016.

In another hand, South Korea’s activities associated with the secondary sector include Motor vehicles
and other transport equipment (14.6%),Chemicals and chemical products (4.31%),Other
manufacturing(3.9%),Food, beverages and tobacco(1.9%),Metal and metal products(1.7%),Textiles
clothing and leather(1.4%),Rubber and plastic products (1.09%),Coke, petroleum products and nuclear
fuel (0.11%). the outward in this sector reached 29.01% From the total outward FDI (30,507.60 $US bn)
in 2016. (ITC, 2017)

According to the previse Analysis statistics for both South Korea and Egypt, South Korea has a great
opportunity to provide the Egyptian sectors with a high fund. A number of Korean businessmen and
investors are planning on establishing an industrial zone in Marsa Matrouh In 2018. The zone is set to
include up to 100 factories from different industries which will export their output.

The KEDA (the Egyptian-Korean Organization for development) includes many companies,
businessmen and investors who are eager to invest in Egypt in many sectors like solar energy,
agriculture, recycling, construction, and infrastructure.

According to the head of KEDA (Kang Woong Sik), Korean investments in Egypt stand at $500 million,
focused in the fields of electronics and textiles.

The deals included railway security system upgrades, the establishment of a joint technological
university, developments at the Alexandria seaport, in addition to memoranda of understanding (MoUs)
between the ministries of education, higher education, justice and trade from both countries. (Korean
industrial zone to be established in Marsa Matrouh: Source, 2018)

3. South Korea invests in Egypt’s PPP

23 South Korean companies showed interest in taking part in Egypt’s public-private partnerships
(PPPs). Teaming up South Korea is a good way to increase Embracing the full life-cycle to foster
successful and sustainable projects that provide needed public services in Egypt. There are many
projects that are monitored by PPP need the efficiency, manufacture quality and outward investment
of South Korea

Total investment committed to PPPs since 1990 until 2017 reached $ 8,169 Million includes 50 projects
while the active investment in PPP's projects is 48 which represent $7,893 Million. (Statstics, 2018)

9
 Financial Closure Investment ($US
Project Name Sector Year Million)
Sokhna Port Bunkering Phase III Ports 2017 $504.00
Scatec Solar Portfolio Electricity 2017 $450.00
Ras Ghareb Wind Farm Electricity 2017 $400.00
Access Power and Eren Solar PV
Complex Electricity 2017 $154.60
Infinity Solar Portfolio Electricity 2017 $115.70
ACWA Benban Solar PV III Electricity 2017 $80.80
ACWA Benban Solar PV I Electricity 2017 $77.50
Taqa Arabia Benban Solar Plant Electricity 2017 $74.10
ARC Benban Solar Plant Electricity 2017 $74.00
EDF EN Benban PV plant Electricity 2017 $74.00
Suez Canal Container Terminal Ports 2000 $893.90
Damietta port Ports 2008 $640.00
Sokhna Port Bunkering Phase III Ports 2017 $504.00
New Cairo Wastewater Treatment Water and
Plant sewerage 2010 $475.00
East Mediterranean Gas Pipeline
Company (EMG) Natural Gas 2007 $469.00
Scatec Solar Portfolio Electricity 2017 $450.00
Sidi Krir Power Station Electricity 1999 $414.00
Ras Ghareb Wind Farm Electricity 2017 $400.00
Port Said power plant Electricity 2001 $340.00
Suez Gulf power plant Electricity 2001 $338.00

Source: PPP Knowledge lab

Egypt Announced that the country will present 12 government projects for international bidding as a
public-private partnership (PPP) ventures worth a total of up to LE18 billion($2.3 billion) in 2016. The
12 government projects will be worth between LE16 and LE18 billion ($2.04 - $2.3 billion). (lab, 2018)

C. International Finance
According to the central bank report July/Sept. 2016/2017:

 International finance recorded a net inflow of US$ 4.0 billion (against US$ 6.4 Million in the
previous corresponding period).

 Net resources from abroad (inflows) rose to US$ 5.1 billion (from US$ 1.1 billion). Most of the
increase was due to the rise in net external borrowing by US$ 2.9 billion and FDI in Egypt by
US$ 515.2 million. And that a good indicator for FDI for entering into a foreign market likes
Egypt and gaining access.
 The net outflow of interest payments and profit transfers retreated by US$ 11.6 million to US$
1.1billion. that is an index for developing Egypt investment abroad and strengthen the
international relations ( Economic, Politics,…). (Egypt C. B., 2017)

10
According to the central bank of Egypt’s July/March 2017/18, Egypt’s IIP at end of March 2018,
recorded net external liabilities of about US$ 144.7 billion, up by 10.5 percent compared to the end of
June 2017.

Liabilities increased by 13.8 percent to about US$ 224.5 billion at end of March 2018, from about US$
197.4 billion at end of June 2017. The increase was mainly due to:
 Portfolio investments in Egypt increased by 71.4 percent to about US$ 36.7 billion.
 Other investment liabilities increased by 8.5 percent to about US$ 75.9 billion.
 FDI in Egypt increased by 5.6 percent to about US$ 111.9 billion. (Egypt C. B., 2017)

liabilities

Direct investment in
33.80% Egypt
Portfolio investment
49.80% liabilities
Other investments
16.40%

(Egypt C. B., 2017)

11
FDI in Egypt financial sector during July/Sept. 2016/2017 reached around 4.3% of the total FDI. The
international finance with Egypt can be an opportunity, for instance: South Korea can get a high FDI
Abrade revenues specially the reports showed that South Korea’s FDI abroad activities associated with
the Financial sector (17.5%), and Egypt has a great and sustainable sectors to some extent which need
for the Korean experience the international finance between both of Egypt and seol will add many
benefits such as

 Access to capital markets enables a country to borrow during tough times and lend during good
times.

 It promotes domestic investment and growth through capital import.

 It prevents excessive domestic regulation through global financial institutions.

 International finance leads to healthy competition and, hence, a more effective banking system.

 It provides information on the vital areas of investments and leads to effective capital allocation.

 Decrease Discount rate will enhance FDI for both of them around the world and increase
lending.

International finance promotes the integration of economies, facilitating the easy flow of capital.
The free transfer of funds would eventually result in more equality between both of them that are
a part of the global financial system.

III. Foreign trade Exports and import

Foreign trade is trade between the different countries of the world. It is also called International trade.
It consists of imports, exports and Entrepot. Exporting and importing goods is not just the core of any
large, successful businesses; it also helps national economies grow and expand. Each country is
endowed with some specific resources. At the same time, a country may lack other resources in order
to develop and improve its overall economy.

A. Foreign trade benefits in Korean-Egyptian relations

South Korea and Egypt have extensive international trade relations, both of which benefit from
global trade, such as:
 Increasing country sales potential, Increasing profits Introducing new products to the market,
Reducing costs and Providing high-quality products
 Division of labor and specialization at the world level. Some countries have abundant natural
resources. They should export raw materials and import finished goods from countries which are
advanced in skilled manpower.
 Optimum allocation and utilization of resources which means resources are channelized for the
production of only those goods which would give the highest returns. Thus there is rational
allocation and utilization of resources at the international level due to foreign trade.

12
  Equality of prices is helping to keep the demand and supply position stable, which in turn
stabilizes the prices, making allowances for transport and other marketing expenses.
 Availability of multiple choices for helping in providing a better choice to the consumers
 Ensures quality and standard goods To maintain and increase the demand for goods, the
exporting countries have to keep up the quality of goods and raises the standard of living of the
people to cause Imports can facilitate standard of living of the people in the country
 Generate employment opportunities by increasing the mobility of labor and resources. It
generates direct employment in the import sector and indirect employment in another sector of
the economy
 Facilitate the economic development, Imports facilitate the economic development of a nation (
high GDP)
 During natural calamities such as earthquakes, floods, famines, etc., the affected countries face
the problem of shortage of essential goods. Foreign trade enables a country to import food grains
and medicines from other countries to help the affected people.
 Promotes World Peace through creates a friendly atmosphere for avoiding wars and conflicts. It
promotes world peace as such countries try to maintain friendly relations among themselves.

Egypt has a stable policy in its international relations and is trying to consolidate its relationship with
Korea in the long term. It is also at equal distances from all parties and is not a party to any dispute,
and the common interests are controlling the strength of relationships.

B. Foreign trade according to Egypt sectors

Based on the foreign train main sectors, we have three sectors can be in the trading process: Public
sector, privet sector, investment sector. Egypt's foreign trade reached US$ 19.2 billion in the financial
year 2016/2017. (Egypt C. B., 2017)

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This means:

1. Privet Sector
Export proceeds of the private sector inched up by US$ 596.8 million to US$ 3.9 billion in the reporting
period. This comes on the back of the increase in exports of gold by US$ 418.6 million, mineral and
phosphate and milk and dairy products, oil; household electric appliances, textiles, and ready-made
clothes. Meanwhile, imports of this sector decreased by US$ 356.5 million to US$ 8.5 billion.

2. The Investment Sector

Export proceeds of investment sector turned up by US$ 231.2 million to US$ 892.6 million due to the
rise in the exports of oil products around 61.1 %of total exports of this sector.

Likewise, import payments of this sector mounted by US$ 9.5 million to US$ 1.2 billion due to the rise
in imports of household electric appliances by US$ 105.2 million; crude oil by US$ 84.6 million; and
liquid and air pumps by US$ 27.9 million. Main imports were represented in household electric
appliances; liquid and air pumps; and televisions.

3. The Public Sector

Export proceeds of the public sector retreated by US$ 297.7 million to US$ 448.8 million. That was
mainly attributed to the decrease in exports of both oil products (6.2 %of total exports of this sector)
by US$ 183.5 million, and crude oil (79.5%) by US$ 109.2 million.

The import payments of this sector rolled back by US$ 463.5 million to US$ 4.2 billion. This was
mainly due to the decline in the imports of crude oil (2.5% of the total imports of this sector) by US$
271.4 million, of wheat by US$ 145.4 million, and of communications and telephone equipment by
US$ 31.8 million.

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Based on the central Bank report import payments, the Asian (non-Arab) countries ranked third by
20.6% of all the total imports.

According to Ambassador of the Republic of South Korea in Egypt, the trade exchange rate reached 1.4
billion and Stressed that the investment in Egypt is attractive to Korean companies, pointing to the
importance of President Abdul Fattah al-Sisi's recent visit to South Korea, which led to further
cooperation between the two countries

C. Foreign trade (South Korea VS East Asia & Pacifica)

Partner name Imports 2015 Imports 2016 Exports 2015 Exports 2016
East Asia & Pacifica 23.63% 23.26% 4.22% 4.22%

South Korea 3.29% 3.71% 0.18% 0.10%

Source: WITS.Org

Imports and Exports Partners Share %

23.63% 23.26%
25.00%
20.00%
15.00%
10.00%
4.22%
5.00% 4.22% 3.29% 3.71%
0.00% 0.18% 0.10%

East Asia & Pasifica

South Korea

imports 2015 Imports 2016 Exports 2015 Exports 2016

According to WTO and WITS statistics, East Asia & Pacifica imports to Egypt reached 23.26% with
decreasing by 0.01% in 2016 compared to the previous year 2015 ,While there is an increase in Egypt
imports from South Korea, the Gross imports ratio increased by 0.12% due to the high percentage of
south Korea imports to Egypt 3.71% compared to the previous year . (WITS)

During this period until Now, South Korea’s Ambassador to Egypt, Yoon Yeocheol and the Egyptian
Investment and International Cooperation Minister signed an EUR 243 million contract for the
manufacture and supply of 32 metro cars. the Korea Economic Development Cooperation Fund will fund
this contract and the contract is rolling stock manufacturer Hyundai Rotem. The cars will be used for the

15
third and fourth phases of Cairo Metro Line 3, with the first four scheduled for delivery in time for the
inauguration of Phase 4B of the line at the end of 2019. The order makes up the second half of the 64
metro cars the Cairo government had planned to purchase for the new line. The third stage of the metro
line spans over 17.7 kilometers and includes 15 stations, while the fourth stage spans over 11.5
kilometers and includes 10 stations. The South Korean bidder will be sourcing 30% of the metro cars’
components in Egypt.

The past three years have been indicators for changing in the volume of exports and imports
between the two countries in addition to the clear importance of resources for both countries and
this is a result of reliance on them in industry. This will be reflected in the following information:

D. Egypt Imports from South Korea and the world

The volume of Egypt’s imports from South Korea (2015-2013):

16
 All products
2,444,586
2,153,958
2,500,000 1,826,898
2,000,000
1,500,000
1,000,000 All products
500,000
0
Value in 2015 Value in 2016 Value in 2017
Egypt's imports from Korea, Republic of

Top 10 Egypt Imports from South Korea in 2017: (ITC, 2017)

South Korea's exports to Egypt amounted to $1.8 billion or 2.8% of its overall imports. The volume of
Egypt Imports from South Korea decreased from 2015 to 2017 but it is still a great index for
international trade between them, in 2017 the volume has reached around 74.7%.

1. Vehicles: $365.3 million total South Korea: $38.8 billion (5.2%) 2017

2. Electronic equipment: $336.2 million

3. Machinery: $205.9 million

4. Plastics: $200.8 million

5. Iron and steel: $119.2 million

6. Organic chemicals: $72.8 million

7. Iron or steel products: $66 million

8. Cereals: $55.6 million

9. Pharmaceuticals: $38.8 million

10. Mineral fuels including oil: $33.5 million

17
E. Egypt’s Exports to South Korea and the world

18
 All products
218,420
250,000

200,000

150,000 89,658
62,473 All products
100,000

50,000

0
Value in 2015 Value in 2016 Value in 2017
Korea, Republic of's imports from Egypt

Top 10 Korea Imports from Egypt in 2017: (ITC, 2017)

Egypt's exports to South Korea amounted to $89.6 million or 0.01% of its overall imports. We notice
that the volume of Korea Imports from Egypt has increased around 41 % from 2015 to 2017 after a great
gap in imports volume in 2016 ( 62.473) and this is considered a significant rate and an index to
improve The foreign trade and commercial conditions between the two countries and increase the
utilization from the international trading

1. Mineral fuels, mineral oils, and products of their distillation $30,021 million
2. Residues and waste from the food industries; prepared animal fodder $23,909 million
3. Copper and articles thereof $4,888 million
4. Electrical machinery and equipment $4,088 million
5. Inorganic chemicals; organic or inorganic compounds of precious metals $4,019 million
6. Articles of stone, plaster, cement, asbestos, mica or similar materials $3,642 million
7. Articles of apparel and clothing accessories, knitted or crocheted $3,551 million
8. Articles of apparel and clothing accessories $2,073 million
9. Lead and articles thereof $2,105 million
10. Oilseeds and oleaginous fruits; miscellaneous grains $2,886 million

19
 F. Korea Asian tiger in Motorcars trading
Korea’s Motor Vehicle Production was reported at 4,114,913.00 Unit in Dec 2017 that is a good
indicator for the motors industry recovery cause This records a decrease from the previous number of
4,228,509.00 Unit for Dec 2016 due to Rise labor costs which are a major threat to carmakers here, as
they make them less capable of investing in research and development, automakers claimed, in addition
to some legal issues which made companies like Kia motors got the verdict from a local court to pay
422.3 billion won ($375.5 million) in compensation. (Statista)

Korea total Motor cars for the transport of person’s exports reported at $ 38,831Million, in the other
hand, Egypt total Motorcars for the transport of person’s imports reached in the financial year 2016/2017
around $ 1,683 Million. Korea has a big market opportunity in Egypt’s Motor industry; especially the
Egyptian people recommend the Korean production and techniques because the Korean products are
known by efficiency and high quality for living in the long run. (CEIC, 2018)

G. ICT Goods trading

Information and communication technology good is a group of telecommunications equipment,
computer and related equipment, electronic components, audio and video equipment, other ICT goods.
ICT is the way we can get into the information age. south Korea is one of the countries which is seeking
to get the ICT power, Korea also gets a high benefit from Export ICT good to the world by reaching
110,330,659.89 USD in Dec 2016.

Egypt still trying to develop ICT infrastructure so Egypt’s ICT Goods imports were reported at
2,386,430.01 USD in Dec 2016. Egypt is a good market for the Korean ICT goods especially Egypt in its
way of creating new technological and informational concepts in the country.

20
IV. Agriculture Sector

A. Common SDGS in the Agriculture sector

As it is known that, The primary sector of the economy extracts or harvests products from the
earth, such as raw materials and basic foods. As a result of Egypt to import a large number of
agricultural crops from abroad and not the presence of the agricultural lands are adapted for
agriculture as well as the spread of the industrial system. Egypt’s imports of agricultural
products constitute 24 % of the country’s total imports. They mainly include wheat, maize,
sugar, and meat. the state decided to increase the volume of agricultural production and the
reclamation of new land and through an alliance with foreign countries, and with one of the
Asian Tigers "Republic of South Korea which is known for its agricultural sector.
These days, South Korea invests in the Egyptian agricultural sector. In 2017, Egypt and the
Korea-Arab Society signed a cooperation protocol to build a $10 billion integrated agricultural
city in the North African country. Within six months, 311,400 acres of land in Egypt will be
transformed into a green city. The project will feature 50,000 smart greenhouses in addition to a
number of seawater desalination and solar power plants. The city will be stretched over an area
of 300,000 feddans in the southeast part of the Qattara Depression, north-west of Egypt.
According to FAO (sustainable development 2030 goals), South Korea through (the Korean
Arab Company for Economic and Cultural Consultancy) and Egypt through the General
Authority for Reconstruction Projects and Agricultural Development (GARPAD), an affiliate to
the Egyptian Agriculture Ministry tries to accomplish SDGs:

• SDG 1 (No Poverty): Rural people make up 70% of the world’s extreme poor. So,
agriculture can contribute more to reducing poverty than any other sector.
• SDG 4 (Quality Education): Agricultural extension enables farmers to access to the
skills, tools, inputs, and knowledge they need.
• SDG 5 (Gender Equality): Women farmers produce 20–30% less than their male
counterparts, mostly on account of differences in their access to and use of resources. Because
women produce over half the food worldwide, bridging this gap could reduce global hunger.
• SDG 6 (Clean Water and Sanitation): By 2030, the global demand for water will have
doubled, with agriculture alone requiring more than what can be sustained to feed the world
(even before domestic and industrial needs are met).
• SDG 7 (Affordable and Clean Energy): By 2030, the demand for energy will have
doubled, mostly on account of developing countries. More crops are likely to be grown for use
as biofuels, doubling or perhaps even tripling as a proportion of total use.
• SDG 8 (Decent Work and Economic Growth): In rural areas, agriculture can be an
engine of employment and pro-poor economic growth.
• SDG 12 (Responsible Consumption and Production): Average consumption per capita is
expected to grow through 2030, even if about one-third of what food is produced goes to waste.
• SDG 13 (Climate Action): By 2030, agriculture’s carbon mitigation potential could
reach as much as 7.5% of total global emissions, depending on the price of carbon and adoption
of agricultural productivity measures.

21
 • SDG 15 (Life on Land): Improving the efficiency of farmland can help meet the demand
for food and curtail the conversion of natural habitats and forests for additional cultivation.
• To this list one could add SDG 11 (Sustainable Cities and Communities) in
consideration of the role of urban and peri-urban agriculture and SDG 14 (Life Below Water) if
by agriculture we also mean aquaculture and mariculture).
The latest technologies will be incorporated to ensure that the development is as eco-friendly
and efficient as possible.
In addition to constructing smart greenhouses, seawater desalination plants, and solar power
plants, the city will grow food and cultivate stevia — a plant which serves as a healthy
alternative sweetener. Though little else is presently known about the integrated agriculture city,
the project signifies the growing relationship between Egypt and South Korea.

B. South Korean experience in Africa Agricultural Technology

Korean Green Revolution was evaluated as a successful case of technology transfer from the
international society. At the 35th G8 Summit, Korea joined in the common effort towards global
food security through the coordinated, comprehensive strategy focused on sustainable
agricultural development, while keeping proper emergency food aid. Korea promised to
participate in mobilizing $20 billion of the Global Agriculture and Food Security Fund (GAFSF)
over three years.
The Rural Development Administration (RDA) is one among several stakeholders concerning
the agricultural technology transfer initiative and a representative government organization that
implements agricultural technology development and its dissemination to farmers and other
stakeholders. RDA focuses on the technical cooperation of the research projects, expert
consultations, and capacity building of technology development agents in the developing
countries.
RDA will implement two programs: the KOPIA (Korea Project on International Agriculture)
and the multilateral cooperation initiatives composed of the AFACI (Asia Food and Agriculture
Cooperation Initiative) and KAFACI (Korea- Africa Food and Agriculture Cooperation
Initiative). (Korea, 2017 )

 KAFACI Program

KAFACI (Korea-Africa Food and Agriculture Cooperation Initiative) was launched in Seoul on
6 July 2010 in order to promote agricultural technology cooperation and transfer to 16 African
developing countries” Angola, Cameroon, DR Congo, Côted’Ivoire, Ethiopia, Gabon, Ghana,
Kenya, Malawi, Morocco, Nigeria, Senegal, Sudan,Tunisia, Uganda, Zimbabwe, and Korea”.
Its objectives are :
 develop technologies in the crop, horticulture, and livestock sector for food security
 develop research policy on agricultural industrialization promotion and restructuring
 develop technologies for environment-friendly organic farming and safe production
 develop new food resources to cope with climate change

22
 Jointly explore the agricultural genetic resources and develop utilization technologies to the
extent feasible under the existing legal provision of member countries
 develop conservation technologies for agricultural eco-system.
 provide education program and develop human resources in agriculture and food fields
 promote technology transfer among Member Countries
 Assist workshops and conference on pending issues.
(Policy, 2011)

C. The major problems of Agriculture are related to Egyptian society

Unfortunately, In Egypt, the agriculture industry has been in decline for decades.

• Many farmers have left their profession, moved to the city and mainly worked as taxi or
tuk-tuk (auto rickshaw) drivers. Some farmers sold their land plots to businessmen and real
estate developers who in their turn carried out housing or commercial projects on the agricultural
lands, causing a massive loss of farmland.

• According to UNDP Climate change has in recent years also taken its toll on agricultural
production
The United Nations Food and Agriculture Organization (FAO) said that the Egyptian economy
“relies heavily on the agricultural sector for food, feed, fiber, and other products”. “It provides a
livelihood for about 55% and employs 30 % of the labor force, contributes approximately 17
percent of the gross domestic product and 20 % of all foreign exchange earnings.”
The Green City is a very good idea and we are in dire need of such projects especially as Egypt
is an agriculture country and has lost a lot over the past years due to negligence in this field.
(FAO, 2017 )

D. Egypt - Agricultural land

In 2015, the agricultural land area for Egypt was 38,202 sq. km. Though Egypt agricultural land
area fluctuated substantially in recent years, it tended to increase through 1966 - 2015 period
ending at 38,202 sq. km in 2015. this means a good indicator for development in Agriculture
sectors and how much Egypt try to improve productivity. (Portal, 2018)

23
 The agricultural land area for Egypt Source : (Knomea)

E. Egypt - Crop production index

In 2016, crop production index for Egypt was 124.6 indexes. Between 1967 and 2016, crop
production index of Egypt grew substantially from 27.8 to 124.6 indexes rising at an increasing
annual rate that reached a maximum of 9.77 % in 1996 and then decreased to 3.87 % in 2016
with Agriculture value added per worker reached 5,283 US dollars

According to FAO, From the most important crop in Egypt which is considered primary Agriculture
productions are Maize and wheat. In 2016, the Maize crop reached 8001411 tons compared to maize
crop in 2015 (7803183 tons).This means that corn production has increased by 198228 tons (2.4%)

24
 Crops Value (tons )

Maize 2015 7803183

Maize 2016 8001411

Wheat 2015 9607736

Wheat 2016 9000000

Wheat crop recorded 9000000 tons in 2016 compared to 9607736 tons in 2015. The indicators
reflect decrease by 607736 tons (6.3%) but still a good production Quantity. (Knomea)

From the previous statistics above, Egypt can be one of the major exporters to south kore. World
trade organization reported that South Korea total Maize crop imports reached $1 789 US
Million while the total Egyptian production of Maize was 8001411 tonnes.
In the other hand, The Egyptian production of Wheat reached 9000000 tons while south Korea
wheat crop imports in 2017 were $958, US Million.

25
 Top South Korea Imported Agriculture products (Million US$) Value in 2017
Maize 1 789
The meat of bovine animals, frozen 1 543
Swine meat, fresh, chilled, frozen 1 527
Other food preparations 1 214
Wheat and meslin 958

Source: WITS.org

V. Energy Sector

For Egypt and south kora besides all the countries around the world, Energy systems are subject
to strong and long-lived path dependence, owing to technological, infrastructural, institutional
and behavioral lock-ins. Yet, with the prospect of providing accessible cheap energy to stimulate
economic development and reduce poverty, governments often invest in large engineering
projects and subsidy policies. Here, I argue that while these may achieve their objectives, they
risk locking their economies onto energy-intensive pathways. Thus, particularly when
economies are industrializing, and their energy systems are being transformed and are not yet
fully locked-in, policymakers should take care before directing their economies onto energy-
intensive pathways that are likely to be detrimental to their long-run prosperity.

Few people consider where electricity comes from when they flip on a light or push the start
button on a computer. Almost everyone in America has grown up in homes that were powered
by electricity. This makes it very easy to take energy for granted, without realizing the cost to
both the environment and to your bank account. Electricity Energy has two major resources
“nonrenewable or Renewable “.

A. Electricity production

Electricity Production in Egypt reached 18,136 GWh in Jun 2018, compared with
17,749 GWh in the previous month., While In 2015, electricity net consumption for
Egypt was 150 billion kilowatt-hours. Egypt electricity depends on the two major
electricity resource and tries to learn from South Korea experience in this field and how
to keep up with the new path of renewable energy. Where Electricity Production in
Korea reached 53,175 GWh in Aug 2018, compared with 51,956 GWh in the previous
month and that is a perfect indicator for how much Korea is sustainable, has efficiency
and the ability to produce electricity and that what Egypt should learn from Korea.

26
 Electricity Production in Egypt reached

1. Non-renewable energy

 Korea’s Oil Consumption was reported at 2,796.19 Barrel/Day in Dec 2017. This records an
increase from the previous number of 2,770.87 Barrel/Day the for Dec 2016, while in 2017
Korea total Petroleum oils, crude imports was $59 603 US Million from all total Mineral fuels,
mineral oils and products of their distillation imports from Egypt reached $ 30,021 US
Thousands after declining in the previous year 2016 ( $12,615 Thousands ). Egypt’s Crude Oil
Exports was reported at 139.30 Barrel/Day th in Dec 2017. This records a decrease from the
previous number of 164.60 Barrel/Day the for Dec 2016.

Korea’s Oil Consumption

 Alqlaah holding focuses on refining, backed by $ 1.1 billion of capital investments from
various sources including the Egyptian General Petroleum Authority contributing $ 270
million, representing a 23.8% stake, and Qatar Petroleum International contributing more than
$ 362 million (27.9%) and direct and indirect investments of US $ 250 million 18.8%.

27
 The company signed a US $ 2.6 billion loan agreement in August 2010, which is distributed
between the US $ 2.35 billion in initial loans and the US $ 225 million in subordinated loans.
Tokyo-Mitsubishi Bank acted as the global agent for the loan package, which was attended by a
number of leading financial institutions around the world: the Korea Export and Import Bank
(KEXIM) ,the Japan Bank for International Cooperation (JBIC), the Nippon Export and
Investment Insurance Corporation (NEXI), European Investment (EIB) and African
Development Bank (AFDB). (Holding)

 Mostorod Refinery Project

ERC (Egyptian Refining Company) has agreed an engineering, procurement, and construction
(EPC) contract for the project with a consortium formed between GS Engineering &
Construction Corporation (GS) of South Korea. The project funded with $3.0 Billion. In 2017,
the shortage of diesel oil is a serious problem in Egypt where the popularization of automobile
use has caused increased consumption of diesel oil against a background of more than 6%
economic growth. Mitsui and GS Engineering & Construction (South Korea) signed an
Engineering, Procurement, and Construction (EPC) contract for building a hydro-cracking
plant with Egyptian Refining Company. The contract value is US$1.8 Billion, which is the
largest Mitsui has ever been awarded in the Middle East

 Korea’s Coal Consumption was reported at 86.31 TOE mn in Dec 2017. This records an increase
from the previous number of 81.87 TOE mn for Dec 2016. The data reached an all-time high of
86.31 TOE mn in 2017. while In 2016, primary coal exports for Egypt was 95 thousand short
tons which means Egypt can be coal Exporter for South Korea, Egypt coal exporter returns to
recovery and that good indicator for production improvements.

Korea’s Coal Consumption

2. Renewable Energy:

Renewable energy technologies are clean sources of energy that have a much lower environmental
impact than conventional energy technologies y so Egypt tries to go ahead in this path with
focusing on South Korea experience in this field especially FDI begins to increase in this path, in
addition, Egypt wants to save energy for the future needs.

28
  Hanwha one of Largest South Korea s Solar Energy Company which helping Egypt’s
companies in solar energy projects. Hanwha became the world's largest solar energy player in terms
of cell production with its cell capacity of 3.28 GW. By the end of 2015, its solar module capacity
reached 3.23 GW with the completion of its new and expanding production lines.

 The Qattara Depression project

South Korea experience in generating wind energy can be added to The mega Qattara project in
Egypt where South Korea investment $10 billion to build the Green city. The Qattara Depression is
a large low-lying area in the desert of north-west Egypt. Its lowest point is 133 meters below sea
level. If the depression were flooded to sea level, the lake formed would cover nearly 20,000 km²
— comparable to Lake Ontario. It would come within 55 km of the Mediterranean coast of Egypt
near El Alamein.

 Waste Management

The second product which exported to South Korea from Egypt is waste around $23,909
thousand.the city government of Seoul, South Korea produced energy worth $165 million from
730,000 tonnes of its household waste last year.
South Korea produced energy worth 185 billion won ($165 million) from its household waste last
year - a value equivalent to the price of 1.33 million barrels of crude oil.
According to a report by the Yonhap news agency, the city government said that of the 1.1 million
tonnes of combustible household waste produced in Seoul last year 730,000 tones was used as fuel
for waste to energy facilities. Egypt can also learn from the Korean model how to waste
management and reduction to generate energy.

VI. Technology
A. Telecommunications

Before the emergence of the Internet and other data networks, telecommunications had a
clear meaning: the telephone (and earlier the telegraph) was an application of technology
that allowed people to communicate at a distance by voice (and earlier by encoded
electronic signals), and telephone service was provided by the public switched telephone
network (PSTN).
In both of Egypt and South Korea, the telecommunications industry is broader than it was in the
past. It encompasses multiple service providers, including telephone companies, cable system
operators, Internet service providers, wireless carriers, and satellite operators. The industry today
includes software-based applications with a communications emphasis and intermediate layers
of software incorporated into end-to-end communication services. It also includes suppliers of
telecommunications equipment and software products sold directly to consumers and also to
service providers, as well as the telecommunications service

29
 Egypt’s Telecommunication Equipment Imports was reported at 1,677,616.96 USD th in Dec
2017. This records a decrease from the previous number of 1,867,403.96 USD th for Dec 2016.
Egypt’s Television Imports was reported at 62,331.41 USD th in Dec 2017.

In 2016, the share of internet users in Egypt was 41.2 %. In the ranking by share of the internet
users including 193 countries, Egypt has the 38th rank. on 30 October 2018, South Korea’s Giga
Global For Telecom & Technology (GGTT) and Korea Telecom will be supplying the Suez
Canal with its new technology system that should help increase the internet speed in the area to
1GBps.
(Enterprise)

The share of the internet users in Egypt Source: (Knomea)

B. Information communication technology ( ICT)

Countries Business innovation and the use of ICT Information and communication technology in
developing nations is becoming a necessity for socioeconomic development. In 2011, the ABS
released a research paper – Business Innovation and the Use of Information and Communications
Technology, by Jessica Todhunter and Ruel Abello – investigating the relationship between
Information and Communication Technology (ICT) use by businesses and innovation activity. This
paper replicates that study using more recent firm-level data from the ABS Business Longitudinal
Database (BLD) and the Business Characteristics Survey (BCS).

A similar approach to the 2011 study was used to summarize the diverse types of ICT usage
(broadband internet connection, business web presence, use of e-commerce) into a single ordered
categorical variable, to determine a measure of a firm’s intensity of ICT use. This ICT intensity
‘index’ reflects the business’ highest degree of ICT sophistication and is used in the analysis to
determine its relationship to innovation. The results of this analysis again show businesses which
use ICT more intensely are more likely to undertake: innovation of all types, more types of
innovation, more novel innovations; and are more likely to develop their innovations in-house.

30
 Egypt, represented by the Ministry of Communications and Information Technology (MCIT), is
partaking in a study trip to South Korea, organized by Smart Africa Initiative, on October 15-19.

The study trip aims to support the capacity building of government officials of Smart Africa
Alliance member countries for the development and implementation of national strategic plans that
use ICTs to accelerate the socio-economic development of Africa. The mission will include, but not
limited to, a series of meetings with representatives of South Korean institutions or companies, as
well as visits these companies.

Smart Africa Initiative was launched during the first Transform Africa Summit, held in the
Rwandan capital, Kigali, in October 2013, under the auspices and in the presence of the Rwandan
President, and with the participation of seven other African Presidents of: Mali, Burkina Faso,
Senegal, Kenya, Southern Sudan, Uganda and Gabon.

Smart Africa Initiative aims at using ICT tools to promote the economic and social development of
the African continent and meeting the challenges of sustainable development in African countries.

C. Technical Education
The Egyptian Ministry of Investment and International Cooperation has received a $6m grant from
South Korea that will be used to establish a Korean technical education facility in the central
Egyptian governorate of Beni Suef. The faculty aims to provide skilled labor to the Egyptian
market and develop scientific capabilities of the teaching staff. The project should be completed
within seven years and will start operating in 2022. The facility will develop technical academic
and skills development programs to improve skills of graduating caliber. It will also aim to raise
the standards of practical skills of teaching staff, policymakers and administrative staff in the field
of technical education. The project would include “vocational training invitations to Korea for
teaching staff at the Egyptian Ministry of Higher Education, as well as frequent visits by experts
from Korea to Egypt for project management consultations.

VII. Entrepreneurship and innovation century

A. The core meaning of Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time
and effort, assuming financial, psychic and social risks and receiving the resulting reward. It is also
defined as the dynamic process of creating incremental wealth.

B. IDE VS SMEs
There are Two Distinct Types of Entrepreneurship, entrepreneurship has dramatically different
objectives and needs.

 Small and Medium Enterprise (SME) Entrepreneurship

31
 The first type of entrepreneurship is a small and medium enterprise. This is the type of business that
is likely started by one person to serve a local market and grows to be a small or medium-size
business. It is most often closely held, likely a family business. Business is important. The business
“rewards” for these founders is primarily in the form of personal independence and cash flow from
the business.

These businesses generally do not need to raise as much money, so when money is injected into these
businesses, the resultant increase in revenue and jobs created is relatively rapid, such enterprises can
be geographically dispersed and the jobs they create are for the most part “non-tradable” in that they
cannot be outsourced to someplace else to reduce costs. Frequently these businesses are service
businesses or retailers of other companies’ products. The key distinguishing factor is their focus on
local markets.

SME that type south Korea faces some difficulties because of The dominance of chaebols in the
Korean economy thus makes it difficult for small and midsize enterprises with new ideas to grow,
despite the government's efforts to boost these companies. As a result, patents from Korean institutions
tend to be half the value of that of US institutions, the KEI expert added.

 Innovation-Driven Enterprise (IDE) Entrepreneurship

It is the riskier and more ambitious of the two. IDE entrepreneurs are aspiring to serve Markets that go
well beyond the local market. They are looking to sell their offering at a global or at least at a regional
level.

These entrepreneurs usually work in teams where they build their business off some technology,
process, business model, or other innovation that will give them a significant competitive advantage as
compared to existing companies. They are interested in creating wealth more than they are interested
in control, and they often have to sell equity in their company to support their ambitious growth plans.
While they are often slower to start, IDE entrepreneurs tend to have more impressive exponential
growth when they do get customer traction. The company starts by losing money, but if successful will
have exponential growth. (Ault, 2016)

(Ault, 2016)

32
 C. Egyptian Startups Need to Korean Experience
This part is displaying some of the startups that have an economic and social impact in Egypt, it’s a good
point for discussion and light the entrepreneurship.

 startup Kngine

South Korea-based Samsung Electronics announced on March 6 the acquisition of Egyptian artificial
intelligence startup Kngine to improve its virtual assistant Bixby, developed by Samsung
Electronics. The acquisition was made by the Samsung affiliate Samsung Next that acquired a 100-
percent share of Kngine. The acquisition is considered a big victory for the Egyptian startup that had
struggled to raise investments after securing its first round and had to move to the United States to
raise more money. The Egyptian artificial intelligence startup had raised its first investment from
Cairo-based Sawari Ventures. The total disclosed investment raised by the startup amounted to
US$775,000.

 South Korea and Egypt are on the verge of a Fintech revolution and 2018 looks to be a very
important year. The issue will be in regards to the role cryptocurrencies will play in the financial
sector. The ongoing evolution of blockchain-based services could really disrupt the Fintech space.
Korean banks are starting to come around to the use of digital currency.
According to the Cairo School of Business, mobile wallets are currently available or being
implemented in 12 banks, and three telecom operators. Figures are growing rapidly with more than
nine million wallets already open, and 200,000 to 300,000 new wallets being opened monthly.
In turn, adoption of FinTech applications can create a further impetus for growth, by helping
consumers, businesses, investors, and other stakeholders realize the benefits of these technologies in
both terms of "economic efficiency and broader financial inclusion."
There are many finch startups needs to south Korea fintech investment and financial service
technology like 7aweshly, Fawry, T-Pay, DCBEgypt, Dopay, Pay Me,Edfa3ly.com

 The Egyptian Ministry of Investment and International Cooperation in partnership with EFG
Hermes and the UNDP launched a new startup incubator, Fekretak Sherketak. It aims at
catalyzing the country’s growing entrepreneurial scene through a four-month acceleration and
mentorship program. Qualified startups will get a seed funding of up to $28,300 for an equity stake
of four to eight percent. Fekretak Sherketak is financed through the support of Egypt Ventures,
an investment company worth upwards of $25 million. This program needs for South -Korea's
Accelerators and incubators in addition to startups in this initiative will be supported by the
government to get funds from Egypt and other countries.

33
Contribution of Entrepreneurship to reducing
Unemployment Rates

38% Small and Medium

Enterpises
62% others

According to Egypt’s Ministry of investment report 2017, the contribution of Egyptian entrepreneurship
to GDP has reached 65% while creating 38% job opportunities. That is a good indicator for attracting
South Korea investments to Egypt and declining unemployment in Egypt in addition 107 Korean
companies operating in Egypt provide 2,200 jobs, which will really help Egypt to increase workers
power and rid of depressions. (Egypt M. o., 2017)

According to Global innovation index, Egypt also ranked 95th in the GII 2018, moving up 10 positions
from the previous year. That perfect increasing which Indicates Egypt's response to technological
change and is a viable environment for investment (GII, 2017)

34
VIII. Final Words

To develop the country there are many dimensions but the country is interconnected, the world
becomes peaceful and relations flourish in various economic, political, cultural and social fields.
Egypt needs an ally like Korea who loves peace, human development and conflict resolution.
Korea has been and still is, a model of development and action, transforming ideas and
innovations into something effective in society and profitable for nations Twenty-five years of
Korean-Egyptian relations are strong evidence of the consensus of the two countries and both have
sought to be positive in the world. We must solve the problems of oil shortage and other problems
facing agriculture and come from the most important sectors for any country In addition to
supporting innovations and opportunities for young people to participate and develop technical
education We are human beings that must join forces and seek to solve problems together

35
IX. Work Cite

 Bibliography

 Ault, B. (2016). Disciplined Entrepreneurship. Willy.

 CEIC. (2018). Retrieved from https://www.ceicdata.com

 Cooperation, M. o. (2017). Investment Report 2016/2017. Cairo: Cooperation, Ministry of

Investment and International.

 Egypt, C. B. (2017). Central Bank report 2016/2017. Cairo: Central Bank Egypt.

 Egypt, M. o. (2017). Investment Report 2017. Cairo: Ministry of Investment and International
Cooperation of Egypt.

 Enterprise. (n.d.). Retrieved from https://enterprise.press/stories/2018/10/30/egypt-signs-

agreement-with-ggtt-korea-telecom-for-faster-landline-internet-service/

 FAO. (2017 ). FAO report 2017.

 GII. (2017). GII. Egypt.

 Holding, A. (n.d.). Retrieved from http://www.qalaaholdings.com/ar/subsidiaries/egyptian-

refining-
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