Economic Relations

The Azerbaijani government considers Korea one of the major partners in the world with which it carries economic and trade cooperation. Azerbaijan declared by the Korean government as priority country for economic cooperation for 2011-2013.

Economic relations between Azerbaijan and Korea are active, especially in sectors such as transport, information and telecommunications, alternative energy, know-how, environment and construction. Trade turnover between the countries until 2005 was very low – only $42 million, but this figure has increased significantly in 2008 ($859 million) and 2011 ($648 million). In 2015 trade turnover between Azerbaijan and Korea was $134 million.

Table: Bilateral Trade Relations

(unit: mln. USD)

Year

Import

Export

Trade Volume

Balance

2004

27,91

3,79

24,13

- 20,34

2005

42,12

0,49

41,63

- 41,14

2006

115,28

68,35

46,93

21,42

2007

216,3

124,8

91,5

33,3

2008

859,4

696,8

162,6

534,1

2009

273,1

148,2

124,9

23,2

2010

375,5

218,3

157,2

611,4

2011

648

444,2

203,8

241,6

2012

243,93

1,13

242,80

-241,67

2013

263,9

34,36

229.28

-194,92

2014

169,54

0,01

169,55

-169,54

2015

133.99

0.38

134.4

-133.6

Source: State Statistics Committee of the Republic of Azerbaijan

 

Table: Main trade products

IMPORT

EXPORT

Electronic devices

Crude oil

Vehicles and their parts

Petroleum refinery products

Pre-shaped PET

Chemical products

Pharmaceutical products

Precious metals

Optical and photographic

Ferrous metals and products

Measuring, checking, medical and surgical instruments and apparatus  

Agriculture processing products

New pneumatic rubber tires for passenger cars

Other household machines are equipped with electric motors

Painted, varnished or plastic coated flat steel rolling with a width exceeding to 600 mm

Other bedding items

Other liquid pumps

 

Equipment for air-condition installations and air conditioning spare parts

 

Cash registers

 

At present, the specific projects of mutual interest to Azerbaijan and Korea are being implemented. The Korea Trade and Investment Promotion Agency (KOTRA) and the Korea International Cooperation Agency (KOICA) representatives in Baku and more than 40 Korean companies such as  "SK C&C", "Heerim Architecture and Design", "Ultra Construction", "Pyunghwa", "Samsung Electronics'" Samsung Engineering", "LG Electronics", "Daewoo Inernational", "Korea Land Corporation", "Ecovise", "Kukdong", GS Construction and "Halla Construction" opened its branch and representatives in Azerbaijan and actively participating in large state and private projects.

In addition, in April 2014, the State Oil Fund of Azerbaijan Republic (SOFAZ) purchased prime office complex “Pine Avenue Tower A” in capital Seoul for $ 447 million USD.

 

Cooperation with Korea International Cooperation Agency (KOICA)

Since the beginning of cooperation with Korea International Cooperation Agency (KOICA) on Official Development Assistance program for Azerbaijan 14 Grant Agreements signed with total grant aid worth $50, 28 million USD and implementation of 8 agreements have already completed. 

Also over 400 Azerbaijani officials and government employees were participated in KOICA capacity building trainings aimed at sharing Korea's development experience and technology transfer.

The KOICA`s current projects in Azerbaijan are "Total Solution for Water Shortage on the Absheron Peninsula in Azerbaijan: Establishment of Water Supply and Sanitation System in Kurdakhani Settlement in the Absheron Peninsula" (beneficiary "Azersu" JSC) and "The Project for the Establishment of Electronic Education Network and Digital Multimedia Infrastructure for Nakhchivan State University" (beneficiary Nakhchivan State University).

In addition, in 2014 the "Economic Development Cooperation Fund" (EDCF) of the Republic of Korea and the Ministry of Finance of the Republic of Azerbaijan signed $ 65,50 million USD loan agreement to finance the implementation of "Establishment of Vocational Training Centre" and “Construction Pirshaghi Sewage Treatment Plant” state owned projects. 

Commission on Economic Cooperation

In 2006 the Working Group on Economic Cooperation was established between Azerbaijan and Korea which has covered several spheres of economic cooperation, such as trade and investment, industry, energy and resources, construction, information and communication, and agriculture. By 2014, the four meetings of the Working Group (Baku and Seoul) have been held.

In accordance with Article 4 of "The Agreement on Economic Cooperation between the Government of the Republic of Azerbaijan and the Government of the Republic of Korea" signed in 2015, the Joint Intergovernmental Commission on Economic Cooperation was established between the Republic of Azerbaijan and Republic of Korea.

On June 14, 2016 the first meeting of Joint Eceonomic Commission between the Government of the Republic of Azerbaijan and the Government of the Republic of Korea has been held in Seoul.  Co-chairmen - Mr. Iltimas Mammadov, Deputy MInister of Coummunication and HIgh Technologies of the Republic of Azerbaijan and Mr. Wo Tae-ho, Depunty Minister of Trade, Industry and Energy led the meeting. The same day the Protocol of the first meeting of Joint Eceonomic Commission has been signed. 

Visits and activities on cooperation

On November 2-5, 2016 Azerbaijan delegation led by Chairman of Baku International Sea Trade Port Mr. Taleh Ziyadov visited Busan city of the Korea to participate at the opening ceremony of the “4th Busan International Port Conference” and “Ports Cooperation: New Development Strategy”, “Prospect of Shipping Market & Future of Port Industry” plenary sessions.

“Memorandum of Understanding on Cooperation” between Baku International Sea Trade Port and Busan Port Authority has been signed in the framework of the visit.