Amb. Lee at forefront of business diplomacy
Source: Korea Times - March 4, 2011
Source: Korea Times - March 4, 2011
Global shipbuilding giant STX signed a $10-billion housing building contract with the Republic of Ghana government last year, the largest deal the African nation has made with a foreign firm.
The housing project, through which 200,000 homes will be built in the African nation by 2014, marked STX’s first project in Africa.
A thin, fast-speaking South Korean diplomat, who has been posted in Ghana for nearly three years, was behind the landmark deal.
Lee Sang-hak, South Korean ambassador to the Republic of Ghana, said that several African nations have taken a closer look at South Korean firms as possible partners after STX won the housing deal.
Of 200,000 homes to be built, 90,000 homes are for government employees, while the remainder will be for the general public. The project includes 300 high-end mansions for lawmakers and Cabinet ministers.
The Ghanaian government provided STX with free land where the housing complex will be located and also gave generous tax breaks on imported construction materials.
Industry experts said these perks are uncommon, considering that the Korean builders that signed housing projects in Asia had to purchase the land where the housing complexes were to be situated and pay taxes for imported building materials.
Kim Eun-seok, ambassador for energy and resources of the Ministry of Foreign Affairs and Trade (MOFAT), told The Korea Times that Ambassador Lee has played a pivotal role between STX ― which was anxious to explore business opportunities in Africa ― and the Ghanaian government.
Kim, who works closely with knowledge economy ministry officials for energy diplomacy, was optimistic about the beneficial impact of the housing project in Ghana on South Korean firms’ other business areas in the nation, as well as other African countries.
“Ghana is endowed with rich natural resources and oil was discovered there of late. If STX’s housing project turns out to be a success, I think it will be an enormous positive influence,” he said.
Ghana is home to quality gold and diamonds. Its oil and natural gas account for 9.4 percent and 8 percent of world production, respectively. Several natural resources, including chrome, are mined in the African nation.
Ambassador Lee’s trust-based network and close ties with key political figures and policymakers in Ghana helped him serve as a convincing mediator in the landmark housing deal.
The envoy set up meetings between STX executives and government officials of Ghana as well as facilitated communications.
“This $10-billion housing project is our first one on the African continent. As we plan to diversify our business areas into construction and energy areas in Africa, this project will help a lot in moving our overseas business plan forward,” an STX publicist said, asking not to be name.
Lee was upbeat about other business opportunities that Africa can provide.
“People say Africa has many problems, including poverty and AIDS. But I see this at a very different angle. The challenges facing Africa offer business opportunities for Korean firms,” Ambassador Lee said.
“If one says Africa has few cinemas or restaurants, Koreans can establish these amenities on the continent. If Africans lack something important in their lives, we can fill these needs.”
His challenging mind and energetic diplomacy appear to be a perfect fit for the shifting role of envoys in foreign missions.
In a speech at the annual conference of envoys of foreign missions held in Seoul in February, President Lee Myung-bak called on diplomats to be more aggressive and goal-oriented. He also urged diplomats to play more constructive roles in helping Korean businesses find opportunities in their place of mission.
Ambassador Lee arrived in Seoul last Month for an annual conference and will leave again for Ghana next week.
