Green growth and innovation high on Korea-New Zealand business agenda

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Strong business community support for the inaugural Korea-New Zealand free trade agreement (FTA) negotiations was demonstrated by the 70 delegates at the Korea-New Zealand Business Roundtable in Seoul on 9-10 June 2009.

Stephen Jacobi, Executive Director of the NZIBF which co-organised the event, highlighted the outcomes of the roundtable: “The Korea-New Zealand Business Roundtable has been successful in enhancing high level business contacts and establishing a new vehicle to take the economic relationship forward."

The business sessions focused on realising the FTA opportunity, creating value from green growth and leveraging strategic opportunities in ICT.

While a key theme of the roundtable was the complementary nature of the two economies, the wider aim of the delegates was to enhance the business relationship between the two countries and highlight industry sectors offering the potential for collaborative partnerships.

In a statement that appeared in the Korea Herald on the day of the even, NZIBF Chairman Graeme Harrison said that while there were significant gains to be realised from a successful FTA, “business leaders need to think more widely [and] remain focused on the bigger picture of what Korea and New Zealand can achieve through closer economic partnership.”

In addition to presentations on the mutual advantages of an FTA from Korean and New Zealand economists, talks from industry experts in the fields of sustainable technology, agricultural services and ICT made up an important part of the roundtable content. Co-operation between to the two countries to develop new business in the Asia-Pacific region was also covered by several speakers.

Kim Chae Kyu of Korea’s Electronics and Telecommunications Research Institute (ETRI) and Peter Lee, CEO of Uniservices, the commercial research and knowledge transfer company for the University of Auckland, both discussed the potential for co-operation in ICT for healthcare: a field highly relevant to East Asia’s rapidly aging population. ETRI and the University of Auckland have entered into a collaborative venture to develop assistive, robotic technology for caring for the elderly.

Phil Shepard, Chief Executive of Harmonic, a New Zealand company building software for agriculture, telecoms and energy, talked about their farm management technologies, which could be applied to farms in Korea and third markets in the Asian region.

On the morning following the roundtable, members of the New Zealand delegation joined a breakfast organised by the New Zealand Chamber of Commerce in Korea, which was addressed by Trade Minister Hon Tim Groser and NZIBF’s Graeme Harrison.

The delegates from both countries will be keeping a close eye on the progress of the FTA negotiations. Further meetings will be arranged to build on the fruitful opening discussions for future co-operation.

Asia:NZ was represented at the roundtable by Deputy Chairman Richard Nottage, Director Business James Penn and Young Leaders Paul Hamilton and Luke Rikiti. The foundation also contributed funding to cover some of the costs of the roundtable. The roundtable was an invaluable opportunity for the two Young Leaders to meet senior business Korean and New Zealand businesspeople, and through the New Zealand Chamber of Commerce in Korea, establish contact with expatriate New Zealanders working in Korea.

Another highlight of the week was a dinner for members of the Asia:NZ Young Leaders Network (YLN), attended by Richard Nottage and several other New Zealand delegates and government officials. This was an opportunity to meet New Zealander Kushana Bush, who is currently the artist in residence at Changdong Art Studio, under the inaugural Asia:NZ/Arts Centre of Christchurch Korean Residency Exchange programme.

YLN members talked about shared interests and discussed ways in which they can collaborate from Korea and New Zealand respectively.

Background

Korea-New Zealand Business Roundtable was organised by the New Zealand International Business Forum (NZIBF) and the Korea International Trade Association (KITA). It was co-chaired by KITA Chairman Dr Il SaKong and NZIBF Chairman Graeme Harrison. The agenda included presentations from Korean Trade Minister HE Kim Jong Hoon and New Zealand Trade Minister Hon Tim Groser.

Whereas New Zealand’s exports are dominated by primary products such as wood and agricultural products, New Zealand’s main imports from Korea are vehicles and electrical goods. Korea is New Zealand's sixth largest market, importing goods worth nearly NZ$1.4 billion in 2008. In the same year, New Zealand imported NZ$1.3 billion worth of goods from Korea. A joint study by Korea and New Zealand found that a Korea-NZ FTA would “produce accumulated gains to real GDP over the 2007–2030 period of US$5.9 billion and US$4.5 billion for Korea and New Zealand respectively.”

The FTA negotiations between the Korean and New Zealand governments took place in Seoul between 9-12 June 2009.

Reports on the roundtable can be found on the website of the New Zealand International Business Forum, www.nzibf.co.nz