Interviewed by Viktor MELNYK, The Day
South Korea, after successfully coping with the economic crisis, is prepared
to lend a hand to Ukraine where, so far, instead of real reforms there
is only circuitous discussion. Kang Keun-tek, South Korean Ambassador,
shares with The Day his views on various aspects of cooperation
between the two countries.
The Day: Ukraine is considered (with reason) a high risk area
for foreign investment. South Korean companies, nonetheless, seem to take
the lead among East Asian investors. What exactly attracts them to this
country so much they are willing to take the risks?
Ambassador: There are a number of reasons and yes, the risk is
high. But there is your labor pool in the first place. Your people are
highly skilled and well educated. Compared to other European countries,
your work force is inexpensive. There are rich natural resources in Ukraine,
along with advanced technologies and fundamental sciences. Ukraine is geographically
on the crossroads linking Asia and Europe, which is also important. From
the point of view of long-term cooperation, Ukraine is very attractive,
especially in such strategic sectors as construction, machine-building,
and electronics.
The Day: How will the economic crisis in the Pacific region
affect Ukrainian-Korean cooperation? Is it possible to talk about a way
out of this crisis yet?
Ambassador: We have a joint venture in Zaporizhzhia, AvtoZAZ-Daewoo.
It is operational, but there are sale problems precisely because of the
crisis. These problem will disappear once there is economic growth. Even
if the crisis has a negative impact on our cooperation this does not mean
that Korea will let it slow. We have embarked on this road and will proceed
in this direction. We are not going to cancel any arrangements made previously.
There is good news from Korea. The crisis broke out in November 1997
and we had to do some restructuring in the financial domain, also in the
corporate and public sectors. Already at the turn of this year positive
changes were registered statistically. Well-grounded forecasts show that
we will come out of the crisis in the first half of 1999 and there will
be economic growth in the second half of the year. Prestigious economic
institutions predict 1-2% economic growth in Korea.
In 1997, the balance of trade amounted to $15 billion, meaning we were
in the red. Last year it reached $40 billion, meaning export balance of
trade. Toward the end of 1997 our foreign exchange reserves were $8.9 billion.
Today, it is $45 billion. The IMF, World Bank, and other international
financial institutions have praised Korea for its economic reforms, stating
that it coped with the task better than all the other countries.
The Day: After last year's nuclear tests in India, North Korea
announced it would renew its nuclear program frozen since 1994. How did
Seoul take this?
Ambassador: International law and UN documents forbid any programs
aimed at developing and manufacturing weapons of mass destruction. The
fact that North Korea is proceeding with its nuclear program is a threat
to stability and peace on the Korean peninsula and the rest of the region,
so neighboring countries will have to take measures to prevent this danger.
China, the United States, Japan, and Russia demanded that North Korea stop
this program. In 1994, North Korea agreed to freeze it. In return, Japan,
the US, and South Korea undertook to build two nuclear power stations using
light water. In the end North Korea would always try to get money from
the international community, using this problem as a lever in negotiations
and lobbying its interests.
Current satellite intelligence shows that there is an underground tunnel
in North Korea and that work is underway there, probably an attempt to
develop its nuclear program. The United States, Japan, and South Korea
wanted to send inspectors to North Korea, but it declined. The latest reports
say it wants $300 million to allow such inspections. We consider that North
Korea must abide by the agreement signed in 1994, so we will continue to
pressure it using diplomatic means.
Despite all political differences, we try to develop economic cooperation
with North Korea, including various exchanges, but it does not want to
meet us halfway.







