1. Brief history of the relationship between Belgium and Korea

In 1892, Belgium and Korea opened discussions on diplomatic relations. In 1900, the first Belgian envoy, Mr. Leon Vincart, arrived in Seoul, and a first Korea-Belgium treaty was signed on 23 March 1901. Due to the Japanese occupation, Belgium had to close down its mission in Korea in 1918. But the Belgians came back on January 31, 1951, in the context of the Korean War to help fight the communist invasion. Over three thousand Belgian volunteers took part in the common UN efforts. Since the beginning of the strong industrialisation and overall progress of Korea after the fifties, Belgium participated actively in the various development programs of the country : technology transfers, educational cooperation, nuclear program, telephone and communication systems, port developments etc. We have now launched a joint program, called ‘Focus Korea’ under which, Korea is receiving special attention and special programs in order to enhance our bilateral relationship in all fields.

2. Current relationship between the two nations, including trade, investment and other cooperation since the overcome of the IMF crisis

The relationship is one of great mutual interest. As soon as the crisis required international attention, Belgium participated without hesitation to the pledging of 15 billion USD of funds for the ‘second line of defense’ together with other major trading partners of Korea. Furthermore, Belgium was the first European country to dispatch an investment mission to Korea in the early part of 1998, which resulted in three substantial investments, which are still going on.

On the other hand, the Korean exporters have used the crisis as an advantage to increase dramatically their exports to Belgium, thereby tilting the overall trade balance in favour of Korea, after several years of Korean trade deficit with Belgium. The Belgian exporters have endured patiently the crisis and kept their presence in order to return to this market which is viewed as very challenging but promising also thanks to the important reforms and the new spirit of liberalisation. Meanwhile, our companies have concluded some additional important investments with Korean partners – both here and on third markets- and the process is still continuing.

3. Distinctive features of Belgian economy compared to Korean economy

The Belgian economy is one of the most open economies as well as one of the top three exporting nations in terms of per capita in the world. From that point of view, we are already the ‘global village’. Since we do not have much natural resources, we have done with as many barriers as possible, we have welcomed foreign investments since decades, we are a fundamentally an importing and exporting nation, we do not pay much attention to the ‘national’ ownership of companies located in Belgium. What counts is : progress, employment, growth, innovation, overall prosperity. That strategy has proven to be successful and we see that Korea now also embarks on a more ‘global village’ approach.

4. Prominent performances of Korean companies in Belgium and Belgian companies in Korea

The Korean companies are strengthening their image as suppliers of reliable, quality goods. Their products are valued now as hi-tech, with good value for money, fine design, and adapted to the taste of the Belgian demanding consumers. This explains the strong growth of the Korean exports in our markets, and this trend is likely to further consolidate. All major Korean companies have some form of investment in Belgium, be it for production, or for distribution from a most centrally located point inside the European market. On the Belgian side here, Belgian companies have succeeded in finding a good way of handling their presence. Sometimes, they rely on Belgian management, but mostly they are able to secure the services of remarkable Korean managers, who do a great job in reconciling the aims of all parties involved. A prominent example, among several, could be seen in the case of the pharmaceutical manufacturer Janssen Korea Ltd, who received the Presidential Award of the best social relations, and a citation for the highest standards of production.

5. Promising investment areas

In principle, all areas could be promising. There is a huge potential for complementarities. Sometimes, one could regret that potential partnerships, which from the outside sound obvious and full of benefits for both parties, do not materialise for some reasons which do not sound convincing. But one thing is clear : the current spirit of reforms and liberalisation must remain vivid, otherwise we would unavoidably head again to new difficulties and missed chances of stronger expansion for the Korean economy.

6. Further enhancing the Korea-Belgium ties

It takes two to tango : we are physically far away by geography, but if the interest and the willingness to move on remains and grows, we will have a bright future ahead. We will seek every opportunity to feed the relationship. Our creativity and alertness will be of determining importance in this endeavour.

To commemorate the Belgian participation to the Korean war, during which 117 Belgian and Luxembourg soldiers died, and to celebrate the 100th anniversary of the establishment of diplomatic relations between the Kingdom of Belgium and the Chosun Dynasty, The Belgian government decided to set up a special program called « Belgium-Korea 2000-2001 – celebrating an old friendship ». A whole range of activities have been and are being organised in Belgium and in Korea during these two years in order to strengthen the friendly relations existing between the two countries for almost one century. It was decided to prolong this special action program with one year, this means until the end of 2002.

Meanwhile, a young Belgian-Korean Business Forum (BKBF) has been set up in Seoul in 1999, as well as a ‘Club Korea’ in Brussels, with ambitious plans by the business community to widen significantly the line of communication in the field of trade, investment, mutual understanding between our two countries.