As of August 2024, Korea’s investment in Croatia was the second highest among the former Yugoslav federation states after Romania. Also, Croatia, often referred to as the “Jewel of the Adriatic Sea”, is a popular European destination for many Korean travelers. All this, and much more, affects the good relations between the two countries, including the political ones, for Diplomacy&Commerce says H.E. Hong Sungwook, Ambassador of the Republic of Korea to Croatia.
- Relations between Korea and Croatia have been continuously developing since the official establishment of diplomatic relations between the two countries in 1992. How would you evaluate the relations between the two countries today and where is there room for their improvement?
In October 2023, Korea’s Prime Minister Han Duck-soo made the first official visit to Croatia by a Korean Leader since the establishment of diplomatic relations. In recognition of the development of the bilateral relations over the past three decades, the two countries elevated their ties to a ‘Comprehensive Future-oriented Partnership’ and adopted a Joint Statement. This Joint Statement emphasizes the commitment of both nations, which embrace shared values such as democracy, the rule of law, and human rights, to enhance cooperation and promote dialogue spanning various sectors, including economic collaboration in areas such as maritime logistics, energy, the green transition, sustainable development, science and technology, education, cultural exchanges, and security. Of particular note, there have been active high-level exchanges this year. In February, former National Assembly Speaker Kim Jin-pyo visited Croatia for discussions with Speaker Gordan Jandroković. In April, Marko Filipović, Mayor of Rijeka, visited Busan to sign a Friendship City Memorandum of Understanding, aimed at fostering close collaboration in maritime logistics. Furthermore, increased people-to-people exchanges and a deeper mutual understanding of each other’s cultures have strengthened the bilateral relations. A growing number of Koreans are becoming familiar with or visiting Croatia. Many Croatians have developed an appreciation for Korean cuisine, including kimchi, as well as K-Pop, K-Dramas, and K-films. Indeed, in May, T”way Air commenced direct flights between Seoul and Zagreb, further facilitating exchanges between the two nations. From an economic perspective, Croatia’s accession to the Eurozone and Schengen in 2023 has brought greater potential for collaboration in logistics and infrastructure. Capitalizing on the opportunities, Korean companies such as Hankook Tire & Technology and Taewong Logistics have established subsidiaries or acquired a local firm in Croatia this year, positioning themselves as gateways to Eastern Europe, with further Korean investments anticipated in the country.
- Tourism is the backbone of the relationship between the two countries. Many of your citizens visit Croatia. What do the numbers show, how many Koreans visited Croatia this year / last year?
Croatia, often referred to as the “Jewel of the Adriatic Sea”, is a popular European destination for many Korean travelers. The country consistently features in group travel products offered by leading Korean tourism companies. A notable turning point occurred in the fall of 2013 when a television program showcasing well-known Korean actresses visiting Croatia (”Noonas over Flowers”) gained popularity, vividly introducing Croatia’s stunning tourist attractions to a Korean audience. From 2017 to 2019, over 400,000 Koreans visited Croatia annually, with well-known destinations including Zagreb, Dubrovnik, Split, Zadar and Plitvice Lakes National Park. In fact, the latter and Jeju island in Korea signed a Memorandum of Understanding and cooperaton in 2023. Even despite travel restrictions in 2021 due to COVID-19, 5,817 Koreans still visited Croatia. In 2023, this number surged to 150,000, marking a 260 % increase from 2022, with a total of 110,000 Koreans having visited by July of 2024. Starting May 2024, T’way Air is operating direct flights, enhancing connections between the two countries. We envisage increased exchanges and hope to welcome many Croatians to Korea.
- Economic cooperation, apart from tourism, is also on the rise. Which segments of the economy and which areas have potential for improvement? How much are Korean investments in Croatia and are there any Croatians in the Republic of Korea?
As of August 2024, Korea’s investment in Croatia was the second highest among the former Yugoslav federation states after Romania. In 2019, Hyundai Motor Company invested 80 million Euros in the Rimac Group, a Croatian electric super car manufacturer, and from 2021 to 2023, four small and medium-sized transportation companies entered Eastern Europe to utilize the logistics network. In 2024, investments related to logistics continue, including the establishment of a T’way Air branch, the establishment of Hankook Tire & Technology and Taewoong Logistics’ acquisition of Croatian transportation company ‘LA Trans d.o.o’. The total trade volume between Korea and Croatia is small compared to Poland, the Czech Republic, Hungary, and Slovakia, where large-scale production bases of Korean companies are located. This is because Korea has strengths in manufacturing such as automobiles and batteries, and exports a large volume of parts related to these. Most of the goods that account for a significant portion of trade between Korea and Croatia are export parts to the central and eastern europe. Considering this, the industry with the greatest potential for Korea and Croatia to continue to seek shared efforts is logistics. It was against this background that the Port of Rijeka and the Busan Port Authority signed an MOU in 2023 to share experiences related to port operation and development, develop port logistics infrastructure and jointly invest, and increase cargo volume between ports. In order to seek economic and business cooperation opportunities between the two countries, the Korean Embassy in Croatia has been hosting the Korea-Croatia Business Forum since 2013. And in 2014, it formed the Korea-Croatia Business Club (Chairman: Zoran Horvat) with a focus on Croatian businesspeople interested in trade and investment cooperation with Korea. In 2024, the ‘Korea-Croatia Business Association’, a gathering of Korean businesspeople interested in investing in and entering the Croatian market, was launched. And in June, the first Croatia-Korea Business Forum was hosted by the Croatian Embassy in Seoul, with the participation of Croatian companies such as Orbico, Podravka, InfoViP, Dizconcept, Baltic, Krasi, PIB Extra, and Uniline. Moreover, a cooperation MOU has been signed with the Croatian-Korean Business Club. We trust that through active exchanges between the business associations of both countries, both Croatian investment in Korea and Korean investment in Croatia will be boosted.
- How do you see relations between Croatia and the Republic of Korea in the future?
The relationship between the two countries is poised for further development in various dimensions, including the political and economy realm, and cultural exchanges. This progress is facilitated by ongoing discussions aimed at enhancing diplomatic ties and deepening cooperative efforts. An increase in mutual visits – whereby numerous Croatians travel to Korea, and vice versa – will also contribute to a closer relationship. Currently, Korea and Croatia are in the process of finalizing a working holiday agreement, anticipated to be completed within this year. This initiative is expected to provide young individuals from both nations with valuable opportunities to immerse themselves in each other’s cultures.
- What would you single out as special points of interest and sights in Croatia that you like and would recommend to someone who comes to visit us?
There are so many beautiful places in Croatia that it is hard to pick only one place. Personally, I love to visit Rovinj and the Island of Rab. And I recommend visiting wineries to taste Croatia’s delightful wines. I think that Croatia’s delicious food such as olive oil, truffles, cheese, Kulen sausage, and steamed octopus will be as fabulous and unforgettable as the beautiful scenery of Croatia.