S. Korea and Egypt sign declaration to launch economic partnership talks

South Korean President Lee Jae-myung and Egyptian President Abdel Fattah el-Sisi shake hands during a joint press conference at the Presidential Palace in Cairo on November 20, 2025. YONHAP
SEOUL, January 18 (AJP) - South Korea and Egypt have officially launched a push for a Comprehensive Economic Partnership Agreement (CEPA), aiming to establish the North African nation as a bridge for South Korean goods entering Europe, Africa, and the Middle East.

South Korean Trade Minister Yeo Han-koo signed a joint declaration with his Egyptian counterpart, Hassan El Khatib, in Cairo on Sunday. The Ministry of Trade, Industry and Energy said the agreement formalizes the intent to negotiate a deal that goes beyond simple tariff reduction to include broader economic cooperation.

The two nations have been laying the groundwork since 2022, following a memorandum of understanding and a joint feasibility study. The decision to move toward a formal deal was reached during a summit last November.

A key focus of Yeo's visit was the potential for South Korean firms to gain preferential access to the U.S. market. During a meeting with Gamal El-Dein, chairman of the Suez Canal Economic Zone, Yeo highlighted the advantages of the Qualifying Industrial Zones (QIZ) agreement. Under this arrangement, goods produced in specific Egyptian zones with a required amount of Israeli input can be exported to the United States duty-free.

"By leveraging the QIZ agreement, the Suez Canal Economic Zone can serve as a new production base for South Korean companies to export to the United States under preferential conditions," Yeo said.

To facilitate this, Yeo proposed a regular consultative channel between the Korea Trade-Investment Promotion Agency (KOTRA) and the Suez authority. He also inspected the Sokhna Industrial Zone and Sokhna Port—the largest of the special zone's industrial hubs—to check logistics and infrastructure.

Yeo later met with representatives of South Korean companies operating in Egypt to discuss regulatory hurdles and financial support.

"We intend to proceed with speed from the start of CEPA negotiations to their final conclusion," Yeo said. The ministry stated it would publish an investment guidebook based on the visit to assist firms entering the market.
Park Sae-jin Reporter swatchsjp@ajunews.com