Korea, Egypt sign shipbuilding pact, launch CEPA talks

South Korea and Egypt signed a memorandum of understanding on shipbuilding cooperation and formally declared the start of negotiations on a comprehensive economic partnership agreement during President Abdel Fattah el-Sisi's visit to Seoul on Thursday, the industry ministry said.

The shipbuilding MOU was signed by Industry Minister Kim Jung-kwan and his Egyptian counterpart, Khaled Hashem, and covers cooperation on eco-friendly ship repair, workforce training and LNG bunkering infrastructure, aligned with Egypt's 2030 Suez Canal Green Strategy. Seoul said the combination of Korea's shipbuilding technology and Egypt's drive to build up its own industry should open the Egyptian market to Korean builders for future vessel construction and repair and equipment exports.

"Based on more than 30 years of mutual friendship and trust since the two countries established diplomatic ties in 1995, we will further expand cooperation in advanced industries such as eco-friendly shipbuilding, future vehicles and defense, as well as infrastructure including energy and logistics," Kim said. "We will actively support trade and investment between our companies so that they lead to substantive results, including through the Korea-Egypt CEPA."

Trade Minister Park Jung-sung signed a joint declaration on the launch of CEPA negotiations with Egyptian Investment and Trade Minister Mohamed Farid Saleh, making Egypt the first North African country with which Korea has declared such talks. The two trade ministers agreed to work closely to hold formal negotiations at an early date, building on domestic procedures and consultations already completed.

Egypt is Africa's second-largest economy and a key hub in the Middle East and North Africa, with a population of about 120 million, more than half of whom are under 30. It is Korea's third-largest trading partner in Africa and its largest investment destination there, and it controls the Suez Canal.

The ministry said the shipbuilding MOU should deepen industrial cooperation in manufacturing, while the CEPA talks would help Korean companies secure an export base and diversify supply chains. The government plans to run a public-private implementation framework so the shipbuilding MOU produces concrete results, and to accelerate the CEPA negotiations in support of Korean companies' business cooperation.

Park also met separately with Egyptian ministers to discuss follow-up measures, including expanding the basis for mutual trade and investment through swift CEPA talks, reviewing the status of Korean companies' major local projects in appliances and apparel, and resolving difficulties companies face in expanding operations and investment in Egypt.