EFE (via 14ymedio), Seoul, 18 February 2024 — The restoration of diplomatic relations between South Korea and Cuba after 65 years can have a positive impact on the national economy, the South Korean Presidential Office said on Sunday, highlighting the richness of the island’s natural resources.
“Cuba has considerable mineral resources that are key for the production of electric vehicles (EV), such as cobalt and nickel,” the government institution stated, detailing the expected impact of the diplomatic rapprochement on different sectors of the economy.
South Korean companies can take advantage of Cuba’s vast reserves of natural resources when the United States lifts the economic and commercial embargo imposed on the country, which has the fifth largest reserve of nickel and the fourth largest reserve of cobalt in the world, according to details of the text published by the Yonhap news agency.
South Korea is the birthplace of three of the five largest manufacturers of electric vehicle batteries in the world.
The South Korean presidential office stated that it will help national companies interested in entering the Cuban market
The South Korean presidential office stated that it will help national companies interested in entering the Cuban market in sectors such as basic necessities, appliances and machinery, scarce in the Caribbean nation due to the aforementioned sanctions.
Seoul also pointed to potential business and cooperation opportunities in the energy sector, since Havana, which suffers from a chronic shortage of electricity, is looking for ways to expand its power plants and the use of renewable energies.
Medicine and biotechnology are other areas where the South Korean Government sees potential economic and research cooperation.
“Cuba has been an untapped market,” says South Korea, where “direct trade is still very limited due to United States sanctions, but we will take advantage of this opportunity with the establishment of formal diplomatic relations to lay the foundations for a gradual expansion of economic cooperation.”
Seoul also pointed to potential business and cooperation opportunities in the energy sector, since Havana suffers from a chronic shortage of electricity
On Wednesday in New York Seoul and Havana formalized the restoration of their diplomatic relations, broken since 1959, with the exchange of diplomatic notes of their representatives at the United Nations (UN).
In 2016, both nations took an important step in the normalization of their relations, with the signing between their chambers of commerce of a memorandum of understanding to share information related to business, carry out exchanges between their delegations and organize joint forums.
South Korea plans to establish a consulate in Cuba to help South Korean visitors to the Island, which were estimated at about 14,000 a year before the outbreak of the COVID-19 pandemic.
Translated by Regina Anavy
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