Trade relations between South Africa and South Korea expanded rapidly following the establishment of diplomatic relations in 1992 and especially since ex-President Mandela’s historic visit to Korea in July 1995. At that time, South Africa and South Korea concluded important agreements:

  Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on
    Income
  Agreement on the Promotion and Protection of Investment
   MOU on Small, Medium and Macro Enterprises

From 8 to 11 Octber 1997, South Africa's Minister of Trade and Industry visited Korea. At that time South Africa and South Korea concluded the following arrangements:

  Arrangement for Trade and Industrial Cooperation between the Ministryof Trade and Industry of the RSA and
    the Ministry of Trade, Industry and Energy of the Republic of Korea
  Agreement on Small and Medium Enterprise Co-operation between Ntsika Enterprise Promotion Agency of
    South Africa and the Small and Medium Industry Promotion Corporation of Korea

In an effort to structure bilateral relations, South Africa and South Korea estabished a Policy Consulatative Meeting(PCM) in April 1997. The Working Group on Trade and Investment forms an important part of the PCM.

Today Korea is South Africa's 4th largest trading partner in Asia and South Africa is Korea's largest trading partner in Africa.

In 2004, South Africa exported goods to South Korea worth US$ 998 million, while South Africa imported goods to the value of US$ 959 million - a trade balance of US$ 39 million favouring South Africa. In 2004 South Korea was South Africa's 17th largest export destination. With regard to imports into South Africa, Korea ranked 11th.

For current and more detailed information on trade statistics between South Africa and Korea, visit the web site of the Department of Trade and Industry of South Africa.

Trade between South Africa and Korea is of a complementary nature and encompasses a broad range of products from minerals and semi-finished products to sophisticated high-technology electric and electronic products.

South Africa is a large supplier of bulk raw materials and semi-processed minerals and metals essential for numerous production processes in Korea such as gold, coal, ferro-chromium, ferro-manganese, iron ore, stainless steel, lead, copper, nickel and zinc. Other South African products showing strong export growth to South Korea in recent years include iron & steel products, copper & aluminium products, chemicals, timber and agricultural products as well as processed foodstuffs.

South Africa ’s consumer products have also increasingly been entering the Korea market in recent years. Diamonds, gold jewellery, semi-precious stone products and exotic leather goods, confectionary, canned fruits, pure fruit juices and wines were introduced to Korean consumers.

Sales of Korean products in South Africa, predominantly manufactured goods, have been growing steadily in tandem with the increasing friendly relations between the two countries. Korean products such as automotives, fabrics, apparel and consumer electronic goods are increasingly making inroads in the South African market. Today Korean companies such as Hyundai, Samsung, Daewoo, LG and Ssangyong are household names as their products gain increasing consumer acceptance.

South Africa's main imports from Korea (2004)      Vehicles and vehicle components - 26%      Radio / TV Broadcasting - 22%      Household appliances - 18%      Polythylene - 10%     South Africa's main exports to Korea (2004)      Ferro-chromium - 23%      Platinum - 15%      Aluminium - 14%      Steel (flat rolled) - 4%      Rhodium - 4%      Cane Sugar - 3%      Iron ore - 4%

There are potential for the following South African products and services within the Korean market:

   Agro-processed goods: meat, vegetables, mohair, wine, juice and tea
   Automotive parts: aftermarket for imported foreign cars & OEM
   Jewellery: pieces, gold, diamonds, platinum
   Chemicals
   Pharmaceuticals, skin and hair care products
   Arts & craft
   Capital equipment / services
   Electro technical equipment / services
   Defence equipment
   Services / franchising

Mining Engineering and Defence equipment

South Africa is a world leader in mining engineering and an important global supplier of sophisticated mining equipment. With its advanced capabilities in the engineering field, South Africa is able to supply underground locomotives, coal stacker reclaimers and conveyance equipment, power plant turbines, boiler feed pumps, cryogenic tanks, engine blocks, automotive parts, heavy duty gearboxes, high voltage electric insulators and many others.

A spin-off from the world class defence technology developed for its defence forces, South Africa is also able to supply armoured personnel carriers and mine detection equipment as well as a wide range of high tech electronic products such as aircraft avionics systems, communication systems, attack helicopters, artillery howitzers and anti-aircraft missile systems to GPS tracking systems and industrial security systems

Energy and Chemicals

South Africa is also a world leader in fossil fuel power stations, nuclear energy and in the production of oil from coal. The erection of three huge SASOL oil-from-coal extraction plants have also resulted in a strong expansion of the South African chemical sector which can supply a wide variety of chemical raw materials and speciality chemical products including alpha olefins and paraffin waxes.

Agricultural Products

Another sector, which offers good prospects for increased trade with Korea, is agricultural products. South Africa is largely self-sufficient in food production and ranks as one of the exporters of agricultural products in the world. South Africa’s infrastructure on testing and certification is well known and respected in export markets.

South Africa is a large global exporter of corn, sugar, wheat, wool, mohair and sunflower oil, and is one of the largest suppliers to Europe of a wide variety of fresh fruits and vegetables. South African fruit such as oranges, grapes, peaches, apricots and pears are exported to more than 80 countries worldwide. In the case of oranges, South Africa currently ranks as the 3 rd largest exporter in the world. It is expected that South African wines, which offer good quality at an affordable price and which annually win many international gold medal awards will enter the Korean market on an even larger scale in the years ahead.

South Africa ’s cold chain infrastructure enables the agro-processing sector to deliver fresh pre-packed salads, vegetables, meats, fish and fruits to many supermarkets’ shelves in Europe and the UK. Fresh cut flower production increased substantially over the last few years to open up another valuable market for South Africa.

South Africa ’s geographic location and different seasonal cycle will enhance trade without directly impacting on local Korean growers or manufacturers in the Agro-processing sector.

South Africa is currenly concluding import protocols with South Korea for a variety of products. These include for meat products such as beef, mutton, pork, ostrich and chicken and also flowers, fresh fruit and vegetables. This will inrease the potential for successfully penetrating the Korean market without competition to the local growers or manufacturers.

The emergence of international trade shows in South Korea has opened another avenue for South African producers to showcase their products in South Korea to buyers from all over East Asia.