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27 September 2007

Seoul: The Premier of the province of KwaZulu-Natal in South Africa, Sibusiso Ndebele, has urged Koreans to consolidate their investments in South Africa by exploring new opportunities. Premier Ndebele is currently leading a provincial delegation to South Korea to concretise trade partnerships that could translate into investment catalysts for the province.

Earlier today, 27 September 2007, the Premier met with Mr Won-Gul Lee, President and Chief Executive Officer of Korea Electric Power Corporation (KEPCO) at KEPCO's offices in Seoul. The Premier extended a personal invitation to the senior management team of KEPCO to attend the first South African International Trade and Investment Conference and Exhibition to be held from 29 to 31 October 2007, at the International Convention Centre in Durban.

"After the conference we will host you as the Premier's Guest and take you on a tour of our coal mining towns of Dundee, Vryheid and Newcastle. These towns have coal deposits for at least the next 40 years with a rail link to the Richards Bay Harbour, which is the second largest harbour in Africa. Come and invest in coal-mining in our province.

"South Africa currently has a huge market for energy. We have raw materials, such as coal, in abundance but what are required are investment, science and technology to turn this raw material into energy. We've got the vision but we need your science and technology. For Korea, South Africa is not a foreign investment; we drive Korean cars, we make use of Korean appliances and so on. So consolidate your investments in South Africa by exploring new opportunities, particularly in the coal-mining towns of KwaZulu-Natal," said the Premier.

Lee said that he had just returned from Russia where he signed a co-operation deal with Russia's energy ministry as part of its efforts to expand global business. In August, the Company entered into a contract with General Electric Company's energy unit to expand its power business to developed markets such as Europe and the United States.

"I will take Premier Ndebele up on the offer to visit KwaZulu-Natal next month. We need to seriously talk about coal imports. Korea imports about 52 million tons of coal each year. Even the supply chain of coal offers numerous opportunities. South Africa has lots of natural resources and there are definitely many areas in which South Africa and Korea can co-operate. KEPCO produces the best quality electricity and uses the best technology. South Africa is developing very fast and needs a transfer of skills.

"Hundred and twenty-years have passed since electricity first came to Korea. During those years, KEPCO has been the driving force behind the astounding economic development known as 'the Miracle of the Han River' developing electric civilisation and improving the quality of life of the people. With the vision of becoming the best energy company in the world, KEPCO is making great strides to lead the global electric power industry," Lee said.

Today, 27 September 2007, Premier Ndebele also met with Mr Se-Hwan Son, President of Trapeace Consulting and a Korean consortium of companies. Son is primarily responsible for Korean companies that have already invested in South Africa as well as those who are keen in investing in South Africa. Also accompanying Premier Ndebele to the meeting with Son was a delegation from the uMshwathi local municipality in the KwaZulu-Natal Midlands led by its Mayor Councillor Marshall Gwala.

At this meeting Premier Ndebele emphasised that South Africa, and particularly KwaZulu-Natal, was one of the most investor-friendly regions. The Premier called on more Korean companies to invest in South Africa and particularly KwaZulu-Natal (KZN). "KZN is the largest province in South Africa and very rich in natural resources. Key products produced in the province include sugar cane, sugar, timber and coal. The province also boasts two of the largest harbours “Although we produce lots of timber, the majority of our timber is exported and manufactured into furniture by other countries which we in turn buy back from these countries. Why should we be exporting this timber when we can manufacture our own furniture for which we already have a ready market?

Government is one of those ready markets and we will also be able to create numerous jobs for our people. We have almost three million learners in our province attending 6 000 schools. All these learners require desks and all these schools require office furniture. What about the furniture requirements of our hospitals, clinics, municipalities, government departments and so on?

"Even other countries on the African continent purchase most of their furniture from Europe because South Africa doesn't manufacture enough furniture. Our local timber, furniture and leather industries must be capacitated and key local areas within the province of KwaZulu-Natal which have their own natural resources, such as uMshwathi with cattle for leather and timber for furniture must play a leading role," said the Premier.

Son said: "It is a well-known fact that South Africa is the gateway to Africa. The export and manufacturing sector is very important for the future economic development of South Africa. We look forward to the opportunity afforded to Korean companies to participate and co-operate in this process thereby contributing to the success of the South African economy.

"Korea relies on timber imports. We import timber and manufacture the raw materials used to produce furniture. We also have a market for leather in Korea. We have factories that make leather hides. We then have factories which buy these hides and manufacture shoes, bags and so on. Korea imports leather and timber and makes products that we use and then also import to other countries. When compared to South Africa, Korea lacks natural resources but we have the skills and technology.

Korean businesses have already confirmed their interest in investing in South Africa, particularly in the leather and timber industry in the province of KwaZulu-Natal," said Son.

The Premier concluded: "It's 'Business Unusual' in South Africa right now we are doing things in a different way with a clear purpose. Korea has the technology and expertise. KwaZulu-Natal has the natural resources. Together we can make a winning combination."

Enquiries:
Logan Maistry
Premier's Spokesperson
Cell: 82 18 699 8139
E-mail: maistryl@premier.kzntl.gov.za

Issued by: Office of the Premier, KwaZulu-Natal Provincial Government
27 September 2007