Kathmandu, May 20: With a view to further promote economic and commerical links between Nepal and the Republic of Korea, First Vice-Chairman of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Rabibhakta Shrestha and the executive Vice-Chairman of the Korean Chambers of Commerce and Industry (KCCI), Kim Hyo Sung signed a Memorandum of Understanding (MoU) Thursday.

The President of FNCCI Pradip Kumar Shrestha and the Ambassador of the Republic of Korea (ROK) to Nepal, His Excellency Boo Hong Hwang were present during the MoU signing function.

Speaking on the occasion, FNCCI President Shrestha said that the MoU would assist greatly in expanding economic links further between Nepal and ROK. He further said, “The MoU would play an important role in helping to bring a balance in Nepal-ROK commerical transactions if we can increase Korean investments in potential sectors of Nepal”.

The ROK envoy to Nepal, Boo Hong Hwang, while stating that the just recently signed MoU is of great significance in expanding bilateral trade, also stressed on the need to translate the articles of the MoU into concrete actions so that industrial and trade relations between Nepal and ROK will be further promoted.

Kim Hyo Sung, KCCI Executive Vice-Chairman, observed that his organisation would be trying its best to bring about a balance in bilateral trade by going for joint investment in Nepal’s potential sectors. He also stated that the ROK is all for increasing economic relations between Nepal and ROK.

As per the MoU, Nepal and ROK would be maintaing contacts for bilateral trade, joint investments, carry out activities to promote economic, technical ties, regularly keep both the nations informed about the economic development and foreign trade policies of each other and to exchange visits for further promoting trade and investment between Nepal and the ROK.

Nepal, in the fiscal year 1997/98, had exported to ROK goods to the tune of Rs. 1.7 million. At the same time, it imported from ROK items valued at Rs. 186 million.

If the main Nepalese items exported to ROK are woolen carpets and goods, ready-made garments, leather goods, cereals and handicraft, then the imported goods from the ROK are iron and steel sheets and rods, fertilizers, viodeo and TV parts, polythene granules and copper wire.

At present, there are 11 joint venture projects operating in Nepal. Similarly, if seven others have already gained licence to operate, then two others have gained recognition. One joint venture project is still undergoing construction.