With a Korean embassy scheduled to open in Georgia this year, the two countries will benefit from enhanced support for diplomacy and business, Georgia’s top envoy to Korea told The Korea Herald last week.

“Since diplomatic relations were established in 1992, bilateral relations have reached a point where it’s not just a matter of desirability but necessity to open embassies in both countries,” Georgian Ambassador to Korea Nikoloz Apkhazava said.

“The new embassy in Tbilisi will give new energy to our relations, as our country has many unexplored opportunities for Korean investment.”

The Georgian Embassy opened its Seoul office in August 2011 and Apkhazava began serving as the first resident ambassador the following February. Bilateral diplomatic services in Georgia have been handled by the Korean Embassy in Baku, Azerbaijan.
 

Situated at the crossroads of Europe and Asia and between the energy-rich Caspian and Black seas, Georgia offers a wealth of tourism attractions, including UNESCO heritage sites, national parks, mineral water springs, and summer and winter resorts.

Georgia received 5.6 million tourists last year and more than 4,000 Korean tourists traveled to Georgia on trekking, skiing, golfing and wine tours in 2013.

“Our tourism and hospitality sectors have seen soaring demands for development, and Korean companies can participate in constructing hotels,” the ambassador said.

Additional areas awaiting foreign investment include infrastructure development, construction, and the manufacturing and energy sectors.

The Korea Water Resources Corp. and Georgian Partnership Fund signed an agreement last year to develop a $1 billion, 280-megawatt hydropower station in Svaneti province in northern Georgia.

Korean conglomerates including Hyundai Motors, Samsung Electronics and LG Electronics have invested in Georgia, and small and medium-sized Korean companies, including Dohwa Engineering and Pyunghwa Engineering, are currently involved in energy and infrastructure projects.

“Despite our small territory (70,000 square kilometers) and population (5 million), Georgia has actively sought to diversify its foreign policy channels with a new focus on the Asia-Pacific,” Apkhazava said.

“As a strategic transport and energy corridor in the Caucasus region, Georgia can cooperate with Korea on its Eurasia Initiative through joint ventures in transport infrastructure, (and) energy networks.”

Korea’s Foreign Minister Yun Byung-se and his Georgian counterpart Tamar Beruchashivili met on the sidelines of the Davos Forum in Switzerland on Jan. 22 this year to discuss ways to activate bilateral consultative mechanisms and economic cooperation.

Yun and Beruchashivili noted the surge in trade between the two countries, which has risen 17-fold over the past five years.

Tbilisi signed an Association Agreement with the European Union last June, which is expected to provide a “qualitative leap” in internal government policy regarding judicial, political, economic and social standards, according to the embassy.

“Georgia has always striven to be a full-fledged member of the European family,” Apkhazava said, explaining that European integration had long been a strategic goal of Georgia’s foreign policy.

Tbilisi initiated a statewide reform in 2003 to fight corruption, eliminate poverty and attract foreign investment. It also implemented policies to decentralize bureaucracy and strengthen democracy, human rights and rule of law, Apkhazava said.

According to the World Bank’s Ease of Doing Business Survey in 2014, Georgia ranked eighth out of 189 countries in the world. The Heritage Foundation 2014 Index of Economic Freedom rated Georgia’s economic freedom 22nd in terms of public finance, property rights, investment and monetary freedoms.

The country saw a steady gross domestic product growth at 7 percent on average from 2004-08 and received significant foreign capital inflow following privatization and the creation of free industrial zones.

Currently, about 30 Georgian students are studying in Korea on scholarships offered by the Korea Foundation, Korea International Cooperation Agency and universities. Most are at Kyung Hee University, the Korea Development Institute School of Public Policy and Management, and Ajou University.

By Joel Lee (joel@heraldcorp.com)