Nepal, Korea sign MoU to boost trade & investment opportunities

KATHMANDU: Nepal Chamber of Commerce and Industry (FNCCI) and the Korea Importers Association (KOIMA) have signed a memorandum of understanding (MoU) to promote the market for Nepali products and expand investment.

The MoU was signed on Thursday during a ceremony held in Seoul, South Korea, between FNCCI Chair Chandraprasad Dhakal and KOIMA Chair Buwagang Kwan Kim.

KOIMA, established in South Korea, focuses on the import of industrial raw materials and products not produced in the country, aiming to enhance the industrial environment and provide goods to the public at affordable prices.

The FNCCI believes that cooperation with KOIMA, an organization focused on imports, will make it easier to expand Nepali products in South Korea.

This collaboration is also expected to reduce the trade deficit between Nepal and South Korea, which currently stands at approximately 7 billion rupees.

As Nepali exports such as felt, carpets, and yarn are increasing, the FNCCI hopes that this partnership will help find markets for industrial raw materials and other goods as well.

During the 50th anniversary celebration of Nepal-Korea diplomatic relations and the MoU signing ceremony, FNCCI Chair Dhakal highlighted the immense potential for strengthening economic ties between Nepal and South Korea.

Addressing the event, organized by the Nepali Embassy in Seoul under the theme “Business and Investment Opportunities in Nepal,” Industry, Commerce, and Supply Minister Damodar Bhandari also attended. Dhakal emphasized Nepal’s vibrant youth workforce, natural resources, and proximity to large markets as key factors for Korean investors to consider.

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Dhakal also shared progress in Nepal’s investment environment, including recent reforms spearheaded by the FNCCI. He highlighted the government’s actions, such as amending eight investment-related laws, to create a more investment-friendly environment. He noted that the approval of the bilateral investment treaty framework would facilitate foreign investment.

Furthermore, Dhakal presented Nepal’s positive economic indicators, including foreign exchange reserves of approximately 17 billion US dollars and Nepal’s first-ever credit rating, which he said is satisfactory within South Asia.

Emphasizing the importance of infrastructure development, Dhakal invited Korean expertise and investment in sectors such as roads, railways, airports, urban planning, hotels, resorts, cable cars, and smart cities.

He also extended an invitation to the Korean business community to explore business and investment opportunities in Nepal, offering full support through the FNCCI’s foreign investment assistance desk.