HomeBilateral Relations
Nepal-South Korea Relations
Political Relations
Nepal and South Korea have commonalities of cultural values based on the ideals of Buddhism. Mutual cooperation, goodwill and friendship are the basis of bilateral relations between Nepal and South Korea. The growing trade, economic and labor relations brings two countries closer.
Diplomatic Relations
Diplomatic Relations between Nepal and South Korea was established in 1969. The diplomatic relation was upgraded to Ambassadorial level in 1974. South Korea established its Embassy in Kathmandu in 1974 and Embassy of Nepal in Seoul was established in 2007.
Major visits
From the Nepalese side,
- Finance Minister Mr. Barsha Man Pun visited South Korea from November 29-December 1, 2011 to take part in the forth High Level Forum on Aid Effectiveness.
- Former Prime Minister Mr. Lokendra Bahadur Chand visited the Republic of Korea from August 18 to 22, 2004 to participate in the Inter-religious and International Federation for World Peace.
- Mr. Raghuji Pant, the then Minister for Labor and Transport Management, visited the Republic of Korea leading a Nepalese delegation from October 16 to 22, 2004.
- Hon. Mr. Krishna Lal Thakali, Minister for General Administration visited the Republic of Korea to participate in the 6th Global Forum on Reinventing Government, which was held in Seoul from May 24 to 27, 2005.
Congressman Mr.CHOI Kyu-Sung of RoK visited Nepal on 8-11 August, 2011.
Chang Nae Sam, Deputy Minister for Construction and Water Resource Policy, Ministry of Land, Transport and Maritime Affairs, RoK visited Nepal on 25-26 July, 2011.
H.E. Mr. Yu Myung-hwan, Minister for Foreign Affairs and Trade of Republic of Korea visited Nepal on 22 June, 2009.
Deputy Foreign Minister of the RoK H.E. Mr Cho Young-jai visited Nepal as Congratulatory Envoy of the Republic of Korea in May 2004.
Development Cooperation
South Korea continues to remain a reliable development partner of Nepal. South Korea provides two types of grants through Korea International Cooperation Agency (KOICA): equipment and project aid.
Economic Relations
Trade Relations
Trade relations between Nepal and South Korea is growing in recent years. Nepal imports machinery equipments like computers, motors and exports tea, paintings etc to South Korea. The trend of trade figures between Nepal and South Korea for the past three years is as follows:
Value in ‘000 Rs.
FY 2007/08 |
FY 2008/09 |
FY 2009/10 |
||||||
Export |
Import |
Balance |
Export |
Import |
Balance |
Export |
Import |
Balance |
NA |
2,077,020 |
|
NA |
2,955,257 |
|
41,323 |
5,888,329 |
-5,847,006 |
Source: Trade Promotion Centre, GON, 2009/10
Tourism
Nepal attracts a lot of Korean tourists due to Lumbini factor, also on account of the availability of direct flights. Korean tourists are increasing in numbers. The arrival figure of the Korean tourists by air is as follows:
Year |
January-November |
|||
2008 |
2009 |
2010 |
2010 |
2011 |
12,556 |
11,792 |
15,151 |
13,698 |
15,784 |
Source: Trade Promotion Centre, GON, 2009/10
Foreign Direct Investment
Korea has made tremendous investment in Nepal worth Rs.4320.89 Million in 149 different industries creating 6263 job opportunities. South Korea has heavily invested in Nepal in different sectors like production, service etc. As of 2010/11, the investment made by Republic of Korea in Nepal is as follows:
Rs. in Million
FY 2008/09 |
FY 2009/10 |
FY 2010/11 |
Total Investment upto now |
||||||
Investment |
Ind. |
Jobs |
Investment |
Ind. |
Jobs |
Investment |
Ind. |
Jobs |
|
72.00 |
5 |
91 |
174.41 |
20 |
676 |
75.55 |
8 |
233 |
4320.89 |
Source: Department of Industries, GON, 2067/68
Joint Ventures
Korean companies continue to show their interest to invest capital in joint ventures in Nepal. At present, there are 21 Korean joint venture companies operating, 1 under construction, 6 has been licensed and 28 have been approved.
Volunteer Service
The two Governments signed an agreement in 2002 for opening of the office of KOICA (Korean International Cooperation Agency) in Kathmandu. The KOICA has been sending mid-level technical personnel and volunteers to assist Nepal.
Agreements
- Agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion between Nepal and South Korea was signed in 2001.
- Air Services Agreement between Nepal and South Korea was signed in 2004
- Cultural Agreement between Nepal and South Korea was signed in 2005
- MOU was signed for streamlining the process of sending Nepalese laborers to South Korea under EPS in 2007 and it was renewed in January 2010.
Nepalese Community
Korea accepts industrial trainees from Nepal under bilateral agreement as per the EPS System. More than 10000 Nepalese are working in Korea under EPS System and some 15000 new workers are in the process of enrollment in Korea soon.
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Hon. Deputy Prime Minister and Minister for Foreign Affairs
Narayan Kaji Shrestha 'Prakash'
Foreign Secretary
Durga Prasad Bhattarai
Office of the Deputy Prime Minister and Minister for Foreign Affairs Diplomatic Code of Conduct 2011
Kutnitik Aachaar Sanhita, 2068 Diplomatic List 2011