Thank you Bob. Sir John, Ambassador, members of the Anglo-Korean Society and other guests. Can I first say how delighted I am to be invited to speak tonight.
I can't claim to be a great expert like many people in this room, but the first trip abroad I made as a Minister was to South Korea, and later this month I will be going for my third trip. I am doing so because I see South Korea as a dynamic, modern economy with which the United Kingdom as the scientific, high-tech hub of Europe should have a close partnership.
UK-Korea Relations
Everyone here tonight will be aware of the great strides Korea has made since the economic crisis hit the region in the late 90's. And I am pleased to say that I think Britain was one of the first countries to respond to the new challenges and opportunities that opened up in Korea.
The results of the subsequent activity are well known to many of you here tonight; companies like Tesco, ICI, Allied Domecq, are among the companies that have been most successful in the market. TESCO is an excellent case study – by the end of this year, they will have opened 22 stores and invested US$1.7 billion.
This period gave Britain an opportunity to demonstrate to Korea that we were not a fair-weather friend. While the export of UK goods to Korea fell, the level of British investment in Korea increased significantly, made possible by the much needed economic reforms introduced by President Kim Dae Jung; the support given to him by the Korean people; and indeed the confidence that we in Government and British industry had in Korea's ability to weather the storm.
UK Korea Trading Relationship
That commitment to Korea has been justified. In the 1990's the UK was the fastest growing G6 exporter to East Asia as a whole. Our exports grew fastest to five markets: one of them being South Korea. I am delighted to say that since the economic crisis UK exports have risen 38% in 1999 and a further 42% in 2000. The general global economic slowdown saw UK exports down by 5% last year.
The good news is that in January- July, the latest available export figures show that Korea is the only major market in the Asia Pacific region to register an increase in UK exports over the corresponding period for 2001. Moreover the increase is a very encouraging 21.6%. This reinforces the message that opportunities for British business are real and growing and Trade Partners in London and the Embassy, under Charles Humfrey in Seoul, are working hard to raise the profile of Korea amongst British business.
Some 47 million Koreans are now keen consumers of goods and services, particularly at the cutting edge – many of which UK firms can supply, and many British companies have long-lasting and profitable partnerships in Korea.
In case you think we have no sense of priorities in this country, can I also report that as a result of Korea's success in the World Cup in June our Embassy in Seoul has reported a 50% increase in enquiries in July to September, more than in the whole of the previous 6 months.
Inward Investment
We are also very proud of our success in attracting Korean investment to the United Kingdom.
We currently have over 120 Korean investments in the UK amounting to over one third of all Korean investment in the European Union.
That investment has enriched our economy and brought considerable benefits to the UK, and I believe it has also been beneficial to South Korea.
There are investments in manufacturing – from microwave ovens to flat screen display panels.
And in research and development too. In the UK, Korean companies are engaged in research into areas including vehicle tyres, semiconductors and mobile phone handsets.
Both our two countries are aggressively pursuing knowledge driven agendas and I am very keen to see more Korean companies carrying out R&D in the UK, and more collaboration between our countries in this important sector.
For our Korean friends this must mean accessing and building relationships with Britain's technology and research base.
It is for this reason that I am particularly looking forward to visiting Seoul later this month to attend the third UK – Korea High Technology Forum. I will also have the opportunity to again meet my counterpart – the Minister for Science and Technology to follow-up discussions from earlier this year.
As regards the High Technology Forum, a delegation of approximately 50 UK companies and leading academics will be meeting with their Korean counterparts to discuss collaborative opportunities in energy and environment, miniaturisation, life sciences and ICT. Facilitated by Mr Seeto, the DTI's International Technology Promoter, companies of all sizes, with leading edge technologies, are being helped to find appropriate partners in Korea or the UK.
The last Forum, held in Bristol, was a tremendous success and I am confident that many friendships and collaborations will be formed at this Forum. If any of you will be in Seoul at the time I would encourage you to attend.
There is a new phase of Korean investment in the UK.
It is driven in part by the Korean Governments efforts to help it's SME companies succeed in Europe.
We applaud this support and were delighted when the Korean IT Promotion Agency chose to locate its European software incubator – the iPark – in London. The iPark was opened last December and five companies are now located there. It is a great success, a gateway through which Korean software and IT companies can easily enter the European market.
And this week, we are pleased to be hosting a visit by KOCCA – the Korean Culture and Contents Agency. The President of KOCCA, Mr Suh and his officials are on visits in London and Bristol to look at options for their European Cultural and Business centre.
KOCCA's centre will be a base from which Korean animation and computer games companies can develop products, find partners and do business in the UK and Europe. We have, of course, expertise in computer games and animation and I know that the UK is the right choice for KOCCA and we look forward to welcoming them into the UK's business community.
Mr Chairman, I believe these types of projects demonstrate we are moving towards an exciting new phase in UK-Korean relationships.
Trade is always the important first step and the trading relationship is then intensified by growing inward investment in both countries. But there is a third phase and I believe this is what we are now experiencing, namely the development of technology partnerships between countries. It is partnership which strengthens the bonds between us.
We are moving towards an exciting new phase in UK-Korean relationships, and I am delighted that a close partnership is developing between our two countries to take advantage of the opportunities that major advances in science and technology are making possible. I believe that both our countries can derive major benefits from such a partnership and I hope to see some of you in Seoul later this month as we take this partnership forward.
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