Cambodia and South Korea Ink MoU to Boost Economic Cooperation

Trade relations and investment by South Korean investors in Cambodia are expected to grow after leading private sector organizations from the two countries signed a memorandum of understanding (MoU) to create new opportunities for business cooperation. The Cambodian Oknha Association (COA) and the Korean Chamber of Commerce in Cambodia (KOCHAM) signed the MoU in Phnom Penh on the afternoon of July 3. The ceremony was attended by COA board vice-chair Han Kheang and KOCHAM president Robin Kim. The agreement aims to strengthen and expand cooperation between the two organizations, by facilitating the exchange of information, experience and business opportunities. It will contribute to sustainable economic development through the effective utilization of both parties’ resources, potential and business networks, explained a COA statement. “The MoU will also serve as an important framework supporting Korean companies in entering the Cambodian market and establishing businesses, promoting collaboration in priority industries, organising business forums and business matching events, exchanging investment information and opportunities, as well as coordinating on relevant government initiatives and participating in policy dialogue,” it said. “The signing of this agreement reflects the shared commitment of both parties to strengthening economic, trade and investment cooperation between Cambodia and South Korea,” it added. Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on July 6 that the strengthening diplomatic relations between Cambodia and South Korea, together with the implementation of the Cambodia-Korea Free Trade Agreement (CKFTA), have continued to improve bilateral trade and investment. He noted that Korean investors have been among Cambodia’s most significant foreign investors over the past two decades. Most Korean investment projects are concentrated in real estate, construction, agriculture, agro-processing and the financial sector. Hong added that, in an effort to attract more direct investment from South Korea, the government is also promoting the establishment of a Cambodia-Korea special economic zone, with participation from both Cambodian and Korean investors. “If such a zone is established, it will certainly attract more Korean investment into Cambodia, while bilateral trade volume will also increase,” he said. According to the General Department of Customs and Excise (GDCE), bilateral trade between Cambodia and South Korea reached $476.88 million in the first five months of 2026, a 31.5% increase from the same period in 2025. Cambodia exported $170.1 million worth of goods to South Korea, up 36.7%, while imports amounted to $306.77 million, an increase of 28.8%. In June, a delegation from the Council for the Development of Cambodia (CDC) travelled to South Korea on an investment promotion tour. The delegation met with senior representatives from both the Korean government and private sector, including several large companies.