PHNOM PENH โ Cambodia has stepped up its efforts to attract more South Korean investment, particularly in agroโprocessing and manufacturing, as bilateral trade between the two countries continued to grow strongly in the first four months of 2026.
Minister of Commerce H.E. Mrs. Cham Nimul received a courtesy call from Mr. Park Joo Bong, President of the Incheon Chamber of Commerce and Industry of South Korea, and his delegation to discuss expanding business and investment cooperation.
The Minister highlighted the contribution of the CambodiaโKorea Free Trade Agreement (CKFTA) in strengthening bilateral trade ties and outlined Cambodiaโs business and investment opportunities. She also stressed the Royal Governmentโs efforts to improve the investment climate and underlined the importance of the private sector in driving economic growth.
Korean Delegation Expresses Interest
Mr. Park Joo Bong and the Korean delegation expressed interest in expanding business activities in Cambodia and shared plans to encourage more Korean investment into the Kingdom. The delegation also pledged to support efforts to create a more favorable business environment for Korean investors.
No specific investment commitments or project figures were announced following the meeting.
Trade Data Shows Strong Momentum
According to the General Department of Customs and Excise of Cambodia, bilateral trade between Cambodia and South Korea reached US$357.08 million in the first four months of 2026, up 23% compared to the same period last year.
- Cambodiaโs exports to South Korea: US$131.41 million (up 33.8%)
- Imports from South Korea: US$225.67 million (up 17.4%)
The trade deficit with Korea stood at approximately US$94 million during the period, widening from the previous year due to faster export growth from Cambodia.
Private Sector Perspective
Mr. Lim Heng, Vice President of the Cambodia Chamber of Commerce, said Cambodia and South Korea currently enjoy strong trade and investment relations, supported by both the CambodiaโKorea Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP).
“Cambodia has the potential to attract investment from Korea because both countries have free trade agreements and RCEP,” he said.
Analyst’s View: FTA Dividend Materializing
Dr. Chheng Kimlong, a regional policy analyst, said the doubleโdigit growth in bilateral trade reflects the effectiveness of the CKFTA, which entered into force in 2022.
“The 33.8% surge in Cambodian exports to Korea is particularly notable. It suggests that Cambodian agroโprocessed goods, garments, and components are gaining traction in the Korean market. However, to attract more manufacturing investment, Cambodia must address logistics costs and skills gapsโissues that Korean investors are highly sensitive to,” he said.
He added that the delegation from Incheon, a major industrial and logistics hub, signals interest beyond mere trading. Incheon is home to South Korea’s largest airport and a major economic zone.
Outlook
The Cambodian government aims to attract more Korean investment in electronics assembly, auto parts, and food processing. Korea is currently among Cambodia’s top five foreign investors, with cumulative investment exceeding US$5 billion. No new major investment pledges were announced during the meeting.
FAQ: Cambodia-South Korea Trade Relations
Q: What is the Cambodia-Korea Free Trade Agreement (CKFTA)?
A: The CKFTA entered into force in December 2022. It eliminates tariffs on over 95% of goods traded between the two countries, giving Cambodia dutyโfree access to the Korean market for many products.
Q: How does RCEP complement the CKFTA?
A: RCEP provides additional tariff reduction schedules and rules of origin that can benefit Cambodia when trading with Korea, especially for products that use raw materials from other RCEP member countries.
Q: What is the trade balance between Cambodia and Korea?
A: In the first four months of 2026, Cambodia ran a trade deficit of approximately US $94 million with Korea (imports of $225.67M vs. exports of $131.41M).
Q: What sectors are Korean investors most interested in?
A: Agroโprocessing, garment manufacturing, electronics assembly, and logistics infrastructure are priority sectors. Incheonโs business delegation also showed interest in smart technology and green energy.