In the Indian Ocean region of southeastern Africa lies Mozambique, a country eight times the size of South Korea. Along its coastline stretching 2,500 kilometers from north to south, Korean companies are participating in gas development at the northern tip of Rovuma. In Maputo, the capital at the southern end, Korean expatriate entrepreneurs are actively engaged in economic activities. Much like the Korean Peninsula stretching from Baekdu to Halla, Mozambique, extending from Rovuma to Maputo, is a country with potential worth attention from the Korean economy from the perspective of expanding Korea's economic territory.
Mozambique's greatest potential lies in its resources and population. Centered on the northern Rovuma Basin, confirmed and estimated natural gas reserves stand at approximately 170 trillion cubic feet (Tcf), placing the country among the world's top 10 in gas potential. In addition, a population of approximately 36 million and a young demographic structure with a median age of 17 point to the potential for future expansion of industrial manpower and a consumer base. While these remain at the potential stage for now, they are conditions that could serve as the foundation for economic structural transformation once industrialization progresses.
Korea and Mozambique established diplomatic relations in 1993. The Korea International Cooperation Agency (KOICA) office opened in 2011, followed by the establishment of the embassy and the Korea Trade-Investment Promotion Agency (KOTRA) trade office in 2013, with relations developing primarily through development cooperation. In particular, vocational and technical training cooperation conducted mainly through KOICA is focused on cultivating manpower tailored to industrial demand, based at the Matola Industrial School, Mozambique's leading public vocational and technical school. Curricula are operated centered on skills actually required in the field, such as welding linked to the natural gas industry. This holds significant meaning in that it raises the basic capabilities of local manpower while forming a foundation for industrial cooperation that supports corporate activities.
Korean companies' participation in the natural gas sector can also be understood within this flow. Korea Gas Corporation holds an approximately 10% stake in Area 4 of the Rovuma Basin. Having been involved in the project from the early exploration stage, it is currently producing gas at the Coral South Floating Liquefied Natural Gas (FLNG) facility. Some of this gas is being imported to Korea. In January this year, the launching ceremony for a second FLNG was held in Geoje. In addition, Korean companies including Daewoo E&C are also participating in construction and project execution linked to the Area 1 LNG project. Cooperation opportunities are expected to expand going forward in related fields such as plants, construction, equipment and materials, vessels, and manpower training.
The activities of Korean expatriate companies settled in the country are broadening points of contact with the Mozambican economy. Expatriate companies active in manufacturing, consumer goods distribution, and services are not large in scale but continue stable economic activities by creating local employment and accumulating market understanding. In particular, Korean expatriate entrepreneurs recently opened a factory producing bottle caps (crown caps) in Mozambique, where manufacturing is scarce. Such private-sector activities are expected to serve as a realistic foundation for pursuing full-fledged economic cooperation in the future.
Mozambique is a country with high potential for building industrial foundations and cooperating in the energy sector through development cooperation with Korea. The Tete Province solar power project, currently underway with support from the Korean government, is set to be completed this year. I am confident it will serve as a light of hope brightening the lives of local residents, and I expect Mozambique to contribute to expanding Korea's economic territory.
