Yoon and Spain's prime minister agree to enhance cooperation

Economy

Published: 18 Nov. 2022, 15:07 Updated: 18 Nov. 2022, 15:21

Yoon and Spain's prime minister agree to enhance cooperation

Spain's Prime Minister Pedro Sanchez and President Yoon Suk-yeol at the president's office in Yongsan in Seoul, Thursday. [JOINT PRESS CORPS]

President Yoon Suk-yeol and Spanish Prime Minister Pedro Sanchez agreed on Friday to expand bilateral ties between the two countries, especially in future industries.

“Spain is a major economy with exceptional industrial competitiveness within Europe,” President Yoon said on Friday after meeting with the Spanish prime minister in Seoul. “The two of us agreed that there is huge potential between the two countries in terms of economic cooperation.”

“We both welcome mutual investment cooperation between the companies of both countries expanding into future strategic industries, including electric vehicle batteries and renewable energy, such as solar and wind power,” Yoon added.

Yoon stressed that the memorandum of understanding signed between the Korea Trade Insurance Corp. and Spain’s Export Credit Agency will be the foundation for boosting joint expansion in global projects.

“Korea and Spain are major countries in overseas construction orders,” Yoon said. “Companies of both countries have been jointly winning construction projects in other countries, especially in Africa and the Middle East.”

Noting the impressive growth in trade investment between the two countries over the past 70 years, President Yoon also raised the importance of cultural and personal exchanges.

He said the opening of the Cervantes Institute in Seoul next year and Spain’s tourism center contribute to strengthening the relationship between the two countries.

“Spain is the world’s second biggest tourism country,” Yoon said. “Before Covid-19, Spain was one of the most traveled to destinations for Koreans, with annual visits of roughly 600,000. The number of Korean students studying in Spain has been increasing steadily.”

President Yoon stressed that Spain is a key partner in leading the international order based on the rule of law.

“We agreed during the G20 meeting in Bali to work together on food, the energy crisis and health,” Yoon said.

One of the key issues discussed was the need for international support in helping Ukraine recover once the war ends.

The Spanish prime minister expressed his condolences regarding the Itaewon tragedy. He said the tragedy brought huge sadness to people in Spain.

Spanish Ambassador to Korea Guillermo Kirkpatrick de la Vega, left, and Korea Trade Insurance Corp. CEO Lee In-ho signs an MOU at Four Seasons Hotel in Seoul on Friday with Spain’s Minister of Industry Reyes Maroto and Korean Minister of Trade, Industry and Energy Lee Chang-yang in attendance. [MINISTRY OF TRADE, INDUTRY AND ENERGY]

Business cooperation expansion was discussed during a business forum between the two countries held on Friday morning. Sanchez attended.

“Considering the economic size and the potential of both countries, there is a huge opportunity to expand economic cooperation,” said Korean Minister of Trade, Industry and Energy Lee Chang-yang on Friday during the Korea-Spain Business Forum. “We expect bigger cooperation in the development of future cars as Spain has a strong automotive industry.”

According to the Korean government, Spain is the second-largest automobile producer after Germany in Europe.

Lee also noted mutual opportunity in renewable energy, including Korea Midland Power’s 90-megawatt Primera Solar Power Plant, built in October, and Madrid-based Ocean Winds setting up an offshore wind power plant in Incheon.

During a meeting with Spanish Industry Minister Reyes Maroto, Lee emphasized the efforts that the Spanish government is making in attracting Korean companies.
He said the Spanish government’s 25-billion-won cash incentive to the Korean battery component maker Iljin Materials plays a significant role in boosting cooperation.

The incentive is from the Spanish government’s Strategic Project for Economic Recovery and Transformation (PERTE), a program for the mobility industry with a pool of almost 800 million euros ($860 million)

Iljin Materials is investing 500 billion won in building a copper foil production plant in Catalonia, which is the biggest green investment made in the region in the last 20 years.

It is the Korean company's first production plant in Europe. The plant is expected to create 500 jobs. Cooper foil is a key component in anodes for EV batteries.

Sanchez is the first Spanish prime minister to visit Seoul excluding trips made to attend multilateral meetings since the two countries established diplomatic ties in 1950.

Sanchez was one of three world leaders to visit Seoul this week. The others are Saudi Arabia’s Crown Prince and Prime Minister Mohammad bin Salman Al Saud and Dutch Prime Minister Mark Rutte.

The Spanish prime minister, who arrived in Seoul on Thursday, visited the Samsung Electronics semiconductor production complex in Gyeonggi, the world’s largest.

Korean Minister of Trade, Industry and Energy Lee Chang-yang makes a keynote speech at the business forum between Korea and Spain held at the Four Seasons Hotel in Seoul on Friday. [MINISTRY OF TRADE, INDUTRY AND ENERGY]

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]