Cambodia, South Korea Agree on Large-scale Economic Projects

June 4, 2009 AKP

Cambodian Prime Minister Samdech Techo Hun Sen and South Korean President
Lee Myung-bak agreed Thursday to significantly boost their countries' economic ties
following the signing of a number of deals on aid and joint economic projects, Korea’s
news agency Yonhap reported.

Seoul will provide US$60-million in loans from its Economic Development

Cooperation Fund for the construction of new roads and sewerage in Cambodia,
according to presidential office Cheong Wa Dae.

South Korea also agreed to start providing Official Development Aid (ODA) to
Cambodia in a framework agreement signed shortly after a summit between the two
leaders.

“The leaders noted the relationship between the countries has significantly
improved since they restored their diplomatic ties in 1997,” Cheong Wa Dae said in a
press release following the summit.

Seoul had severed its ties with Phnom Penh in 1975 when the communist Khmer
Rouge government took control of Cambodia.

“President Lee said South Korea will actively share its development experience
with Cambodia as part of its new diplomatic campaign toward Asia and agreed to provide
ODA for Cambodia's agricultural, medical, industrial and educational development,” the
statement said.

Samdech Techo Hun Sen arrived in South Korea earlier in the week for a special
summit between Korea and the Association of Southeast Asian Nations (ASEAN) that
was held on the southern resort island of Jeju.

The South Korean president offered his gratitude for Cambodia's support for a
joint press statement issued at the end of the Korea-ASEAN summit, in which the leaders
condemned North Korea for its latest nuclear test and urged the immediate resumption of
dialogue to resolve the issue.

“I thank you for taking part in the special Korea-ASEAN summit and helping to
successfully hold the summit,” Lee said. “I also want to thank you for speaking in
accordance with South Korea against North Korea's nuclear test.”
 Pyongyang has said it conducted a second nuclear test on May 25, prompting the
international community and the U.N. Security Council to discuss imposing new
sanctions on the North.

Thursday's bilateral summit in Seoul was followed by a signing ceremony on six

agreements, including three memorandums of understanding (MOU) on energy,
construction and transportation cooperation.

“The leaders welcomed the signing of the MOUs and agreed to further increase
cooperation between the two countries,” the presidential office said.

Lee asked for Cambodia's support on a joint project under which Seoul plans to
build a 50-hectare industrial park near Sihanoukville in southern Cambodia.

“Prime Minister Hun Sen said his government will actively review and support
the project,” the statement said.

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