Accord expected to help diversify Korea’s wood imports


South Korea and Chile signed on Wednesday a memorandum of understanding on cooperation in forestry, in commemoration of their 50th year of diplomatic ties.

Korea Forestry Service’s Minister Lee Don-koo and Chile’s Agriculture Minister Luis Mayol signed the MOU at Grand Hilton Hotel in Hongeun-dong, central Seoul.

The pact promises cooperation in forestry including development and investment in forestry resources, manufacture and trade of forest products, reforestation, management of forests, prevention of forest disasters and conservation of the ecosystem. 

Korea expects the MOU to be a starting point to diversify Korea’s international forestry diplomacy and wood imports, which have so far been dependent on Southeast Asia.

“The Korea-Chile MOU will boost overseas forestry investment, one of the major projects that Korea Forestry Service is putting an effort into. We are expecting more exchanges in the private sector, governmental organizations and academics of the two countries as well,” said Lee.

Korea has cooperative forestry agreements with 12 countries, most of which are in Asia. KFS has been seeking to create similar relationships with South American countries which have great forest resources.

Korea signed its first-ever free trade agreement with Chile in 2004. With abundant forest resources and developed infrastructure, Chile is considered the most attractive South American country to work with in terms of forestry. KFS officials expect that the MOU will help shift the focus of forest MOUs from simply trading wood resources to securing bio energy and carbon-trading permits.

“I am looking forward to a complementary relationship. Chile is a powerful forestry country exporting $6 billion a year and Korea has been running a dramatic forestry policy,” Mayol said in an interview with The Herald Business.

Chile has a suitable geography and climate for both agriculture and forestry, he said, which allows introduced species to easily adjust to the natural environment of the country.

“Radiata pine, for example, takes 50 to 60 years to grow in Europe, but takes only 18 years to commercialize in Chile. For Eucalyptus, it takes only eight years. It means that short-term profit follows when you invest in Chile’s forests,” he said, adding that the nation has a policy of offering 11 million hectares of planted and natural forest to foreign investors. 

By Park Min-young and Lee Kwon-hyung
(claire@heraldcorp.com) (kwonh@heraldcorp.com)