For Korean companies eyeing Latin America’s emerging markets, Colombia could be a launch pad for kick-starting their business.

The country is breaking out of years of protectionist legacies to become a safe haven for investment and trade. Millions have moved out of poverty to form a fledgling middle class, ready and willing to splurge on consumer goods. After half a century of bloody armed conflicts with the guerrilla organization FARC, the clouds are finally parting with progress in the peace process.

Colombian Foreign Minister Maria Angela Holguin’s recent visit to Korea from Jan. 6-7 reaffirmed both countries’ commitment to increase cooperation after a free trade agreement was signed in February 2013. As the first foreign minister to visit Korea under Colombian President Juan Manuel Santos’ government, Holguin met Korea’s Foreign Minister Yun Byung-se, as well as Colombians studying and working in Korea, journalists and Korean business communities.

“The purpose of my visit is to invigorate economic cooperation, which is expected to take off after the FTA comes into force this year, and to increase exchanges in educational and cultural areas,” Holguin said in an interview with The Korea Herald at Colombian coffee franchise Juan Valdez Cafe at Dongdaemun Design Plaza in Seoul last Wednesday.

“We are waiting for a constitutional review of the agreement, expected to be completed in a few months. As we are moving toward resolving a six-point agenda with the FARC, Colombia will be politically more stable and economically competitive.”

With Korea’s traditional trade partners experiencing a slowdown in growth in recent years, rapidly developing South American economies are prompting a “pivot to South America” for Korean companies.

After the free trade agreement was signed, ratification had been delayed as a result of stiff opposition by Colombia’s automobile and electronics sectors; but passed through parliament last year.

Cars, automobile parts and synthetic resins make up the bulk of Korea’s exports to Colombia, and following lowered tariffs, exports of heavy construction equipment and materials, pharmaceutical products and medical equipment are expected to increase.

The two countries became strategic partners in 2013, and there are currently 36 Korean companies operating in Colombia with cumulative investments of over $70 million.

The Colombian government has been at the forefront of attracting foreign investment to steer national development, targeting areas of job creation, infrastructure, energy and environment, among others. The International Monetary Fund forecast Colombia’s economy to grow 4.5 percent this year, maintaining the healthy average 4 percent pace of the last 10 years.

“As a country with a large territory facing both the Atlantic and Pacific Ocean, Colombia has huge demands for building its countryside through infrastructure development,” Holguin said. “Korean companies will make a fortune by building roads, airports, harbors, bridges and railways, and can use Colombia’s strategic location as an outpost to other Central and South American countries.”

Colombia has rich natural resources of oil, coal, mineral fuel, natural gas and precious stones; and exports large quantities of pulp and paper, coffee, meat, cotton, sugars and other agricultural produce. Bilateral free trade will bring more Colombian fruits, meat and dairy products to Korea, Holguin said.

Regarding the peace negotiations with armed rebel group FARC, Holguin said, “We have agreed on three points ― agricultural development, ending drug trafficking and political participation ― of the agenda and are negotiating the other three ― disarmament, compensating the victims and implementation of the peace deal.”

The Colombian Embassy in Seoul said, “Colombia respects Korea’s rapid development experience, which it hopes to model its own growth. Latin American countries aspire to combine their natural and human resources with Korea’s expertise in science and technology, to add value to them and export.”

By Joel Lee (joel@heraldcorp.com)