Seoul: South Korea needs to seek broader economic ties with Africa building on a “soft money” strategy focusing on technology and cultural exchanges over conventional exports, SK Group Chairman Chey Tae-won has said. “If protectionism continues around the globe, an export-oriented economy will no longer provide an answer. For South Korea to grow, we need to build soft money,” Chey said during a forum hosted by Yonhap News Agency, South Korea’s leading news service, on Friday.
According to Yonhap News Agency, under the theme “Rediscovering Africa: Leaping Forward Together with South Korea,” the second Future Economic Forum, co-hosted with the Korea-Africa Foundation, highlighted ways to expand economic partnerships in key sectors, such as mineral resources and information and communications technology. Soft money is a concept encompassing intellectual property exports and cultural industrialization, contrasting with “hard money,” or goods-oriented outbound shipments.
The remark is seen as a proposal to build a mutually beneficial cooperation model by combining Africa’s raw materials and natural resources with South Korea’s technology and capital. Chey said based on his experience of visiting Africa, South Korea needs to find a new approach to strengthen ties with the continent beyond traditional methods. “Africa imports a significant portion of the raw materials it needs, while purchasing advanced products such as information technology goods and automobiles, leading to a trade imbalance and worsening environmental destruction,” Chey said.
Chey emphasized that achieving sustainable development is a challenging task, noting that such hurdles can be overcome through the new strategy. “South Korea should not only seek product-based exports, but help Africa advance its potential through technology transfer and investment, ultimately helping the continent expand its economy and invigorate its industries,” he added.
The SK chief suggested that South Korean companies can serve as partners for Africa by producing electric vehicle batteries or electric vehicles on the continent. “If we produce automobile models in cooperation with Africa, even if initial products are expensive or show weak performance, the economic impact will grow as African consumers continue to use them,” Chey said.
He also cited the renewable energy industry as another area where the soft money concept can be applied. “South Korea has limited land and cannot fully utilize renewable energy sources, but Africa has vast land and can produce hydrogen through solar power. If we import that hydrogen, we can address our energy challenges,” Chey said, adding that South Korea and Africa can forge a mutually beneficial partnership with significant potential.
Other officials participating in the forum also shared ideas to further promote the soft money initiative. Iyinoluwa Aboyeji, a Nigerian entrepreneur and head of the Future Africa platform, noted Africa can expand cooperation with South Korea in areas including the development of professionals, infrastructure for advanced industries including batteries, as well as other cutting-edge technologies. With South Korea aiming to become one of the three artificial intelligence (AI) powerhouses, Aboyeji added that Asia’s No. 4 economy can become the leading player through cooperation with Africa.
Wamkele Keabetswe Mene, secretary general of the African Continental Free Trade Area (AfCFTA), said South Korea’s technological innovation can serve as a catalyst for Africa’s drive to establish networks for domestic production of automobiles, digital technology, and renewable energy.