‘After historical people’s movement in 2006, Nepal became a Republic’

The following are excerpts from an interview with Ambassador Arjun Jung Bahadur Singh of Nepal in Seoul on the occasion of the National Day of Nepal on Sept. 20, 2018—Ed.

Question: My hearty congratulations on the National Day of your esteemed country! Please introduce in full the National Day of your country.

Answer: Thank you for your congratulations. I am really happy to talk with you for the special publication featuring Nepal in your esteemed media, "the Korea Post". Thank you for this opportunity. After the historic people's movement in the year 2006, Nepal became a republic state in the year 2008 following the abolishment of the age-old monarchy in a very unique yet peaceful way. Since the first Constituent Assembly was unable to deliver constitution on the stipulated time, the second Constituent Assembly was formed from the election in 2013. However, the drafting process was further dragged for almost two more years and the new consitution was promulgated finally on 20 September 2015. The new constitution, passed by almost 90 percent of votes in the Assembly, has established Nepal as a republic and secular state with the federal governing structure.

In the following years promulgating the constitution, Nepal also completed the elections at all three layers, namely the local, the provincial and the federal. Presently, a new stable government with two-third majority has been in place which is mainly focusing on the rapid economic growth and development of the nation with the motto of "Prosperous Nepal and Happy Nepali."

Thus, the promulgation of the new constitution was the turning point in the history of Nepal, the juncture where Nepal completed the political transition and put herself on the path to economic reforms and rapid growth through proper implementation of the laws of the land. Commemorating the very essence and importance of this day of promulation of the new constitution, the Government of Nepal decided to celebrate the National Day of Nepal on 20th September every year since the year 2016. Before that Nepal used to celebrate her National Day on 28th of May, the day Nepal was declared a Republic State.

Q:As the Ambassador to the Republic of Korea, please introduce the progress of bilateral cooperation in the economic, political and other areas so far made during your tenure of office in Korea and your view of the outlook of further development between the two countries.

A:Ever since the establishment of diplomatic relations in 1974 the relations between Nepal and the Republic of Korea have been continuously strengthening based on mutual cooperation, goodwill and friendship. Both the countries celebrated the 40th anniversary of diplomatic relations in the year 2014 organizing various programs. The exchanges of visits at the high political and bureaucratic levels have been increasing in the recent years. After, my arrival in Korea and presence of credential to His Excellency President Moon Jae-in on 18 July 2018, I have been continuously working to make the high level visits between two countries possible at the earliest. In fact, the Government and people of Nepal have been looking forward to welcome President Moon Jae-in in Head of the Government who has been to who has been there few times before as well ahead of becoming the President.

The Republic of Korea had welcomed the promulgation of the new constitution of Korea and has been showing its unwavering support towards the recent political and economical developments in Nepal for which I would like to take this opportunity to express my sincere gratitude to the Government and the people of the Republic of Korea. Similarly, Nepal has welcomed and congratulated the latest political development regarding the improvement of relations between two Koreas and will always wish for continued peace, progress and prosperity on the Korean Peninsula. Our best wishes are there for the succesful holding of the third summit between two Koreas at the President level which is starting from today in Pyeongyang.

Not only in the political area but the relations between Nepal and the Republic of Korea are ever growing even in the economic and social spheres. In the recent years, there has been an increasing trend in the bilateral trade, tourism as well as the investment. The bilateral trade has more than tripled in the last ten years with significant trade deficit on part of Nepal. Similarly, in the year 2017, more than 35,000 Korean tourists visited Nepal which represents a growth of around 35% than a year before. Nepal has also been attacting many investors from Korea mostly in the sectors such as hydropower, industry, service and agriculture. Presently, the Republic of Korea stands at the 7th position in terms of Foreign Direct Investment (FDI) in Nepal.

Let me also mention that Nepal is one of the best regions and a virgin land for investment and the best among the best as a tourist destination. So, there are ample spaces for bilateral cooperation and mutual projects to proceed in Nepal. I am confident that there would be more cooperation and joint projects in the areas such as tourism, trade, infrastructure and other sectors in Nepal in the days to come.

Q:Who are the Korean companies actively contributing to the economic cooperation between the two countries? Please omit the big companies such as Samsung, Hyundai and LG, as they are already widely known and need no further introduction.
A:Besides, big companies such as Samsung, Hyundai, Kia and LG, many other Korean companies have also been investing in Nepal and contributing in the economic cooperation between both Nepal and the Republic of Korea.

Three renowned Korean companies have formed a consortium for a much awaited 216 Mw Upper Trishuli - I hydropower project in Nepal. This project worth $550 million in Rasuwa district of Nepal is supposed to commence constuction from this month. The three Korean companies involved in project are Korea South East Power Company Ltd (KOSEP), Daelim Industrial Company Ltd, and Kyeryong Construction Industrial Company Ltd. Successful completion of this project is sure to attract more Korean investment in Nepal. This will also help to further consolidate the economic relations between Nepal and the Republic of Korea.

Already the 30 Mw Chameliya Hydropower Project in Darchula District of Nepal has been completed with generation of electricity from last January. This $226 million project was financed by the Government of Nepal and Economic Development and Cooperation Fund from the Republic of Korea. Korea Hydro & Nuclear Power of South Korea was involved in this project taking care of electro-mechanical works.

I know that there are Korean companies interested in many other hydropower projects as well as Nepal has a huge potential to generate hydropower to fulfill not only the growing demand of Nepal but also the need of neighbouring countries in South Asia.

Similarly, Korean investment has been gradually increasing in Nepal and till mid July 2016, Korea stands at the seventh position in terms of Foreign Direct Investment in Nepal with total investment of nearly 30 million USD. Korean investment is more significant in the industrial sector of Nepal followed by service and agricultural sectors. Korean investors are teaming up with the Nepali businessmen to open small and medium scale industries in Nepal especially in industries like textile, brick manufacturing, production of medical equipment, paints etc.

As Nepal is a beautiful touristic destination and as Korean visitors to Nepal are increasing in the recent years, many Koreans have also shown their interest to invest in service sectors such as in hotel and entertainment businesses. We have Korean Airlines connecting Incheon and Kathmandu with four flights per week at maximum.

Q:What is the current volume of bilateral trade and its outlook in the next 12 months?

A:Bilateral trades between two countries have been continuously growing over the period. The total bilateral trade volume for the year 2017 was around 32.5 million USD which was nearly 28% increment than in the previous year. However, the trade deficit is huge on the part of Nepal. Nepal's export to the Republic of Korea was roughly 6% of the bilateral trade in 2017 which was about 7% a year before. Nepal mainly imports high valued mechanical appliances and parts, medical and surgical equipments, vehicles and electronic items from Korea but exports products such as carpets, textiles, agricultural goods and raw materials to Korea. The Embassy of Nepal has been continuously making its efforts to promote export from Nepal to Korea through participating in various trade fairs and organizing trade seminars and raising awareness on Nepal's exportable items in Korea. I think the bilateral trade will keep continuously expanding in the coming months as well.

Q:What are the areas in your country where you want Korean companies to invest in and what are the areas where you wish your businessmen to invest in Korea?

A:Nepali businessmen are investing in Korea in the service sector mainly in restaurants, trading, marts, travel and tourism businesses etc. There are many Nepali restaurants operating in Seoul and other cities in Korea. I hope Korean people love little spicy Nepali cuisines very much.

Regarding the Korean companies in Nepal, I think there are immense potentialities of investment and doing business in the sector of energy, especially for the generation of hydro, solar and wind energy. Further, the Government of Nepal is coming up with many infrastructural projects such as construction of airports, highways, railroads, monorails, tunnels and bridges etc. These projects can be of interest for Korean construction companies.

Similarly, opportunities are there in manufacturing and industrial sectors as well, as Nepal is strategically located between two big economies of India and China where 35% of the global population lives. Not only because of the huge and growing market but Nepal is also a perfect place for production of goods and services due to cheap cost of land, labour and energy. Goods produced in Nepal can enjoy duty free quota free access in many of the world's markets.

Tourism is the next important area where Korean companies can focus in the coming days. To cater the needs of the growing number of Korean and other tourists visiting Nepal, Nepal really needs more infrastructures such as hotels, restaurants, entertainment facilities and others.

Q:Korean business leaders as well as the FTA's want rest and recuperation. What are the attractive tourist destinations of your country.

A:Nepal has a lot of mesmerizing and breathtaking places which not only heal but also energize you. It is really a beautiful country naturally and culturally. Which place of the country to visit may depend upon what areas you are interested at.

Nepal is a country of Everest - the highest peak on the earth. Eight out of the ten highest peaks in the world are in Nepal. We have more than 5000 peaks of 5000m height which is why Nepal is the Mecca for mountaineers all over the world. The trails at the foothill of snow-cladded fascinating mountains above the roaring rivers, often observing the majestic lakes on the ways are not only worth walking but equally adventurous, refreshing and healing. Nepal has more than 6000 rivers and more than 2000 geogerous and pristine lakes. Culturally, Nepal represents one of the ancient and age-old Asian civilizations nurtured by noble thoughts and teaching on peace of Lord Buddha who was born in the beautiful place of Lumbini, Nepal. Nepal, thus, is a perfect place for Koreans who are fond of nature, culture and adventure. Thus, one can simply imagine why His Excellency President Moon Jae-in has been to Nepal for so many times. One can really energize himself or herself viewing the perfect beauty of nature and experiencing the culture and hospitality of the excessively friendly people in Nepal.

Besides mountaineering, people can also enjoy trekking in some of the world's best trekking trails such as Annapurna Circuit, Everest Base Camp, Upper Mustang, Langtang Valley etc. You can visit the heavenly city pokhara, known as the city of lakes; go to Chitwan to experience the richness of flora and fauna with elephant safaris to see rhinos and Royal Bengal tigers. Similarly, places like Manang, Mustang, Khaptad National Park etc are all worth of visiting that will definitely allow you to experience the mesmerizing natural beauties and unique and fascinating cultures. For these culture lovers, Kathmandu valley including Bhaktapur and Lalitpur and surrounding cities will surely make you lead through the open museum of arts and architectures making you feel the history and traditional cultures of medieval Nepal. Actually Nepal holds numerous places to visit and experience which is why it is one of the world's best destinations for natural and cultural tourism, adventurous and religious tourism, sport tourism, yoga, meditation and spiritual tourism, conference tourism etc. As Nepal is celebrating the Visit Nepal Year 2020, I request all Koreans to have a visit to Nepal. You will surely enjoy a lot.

Q:Please add whatever other details that we might have left out from our questionaire.

A:Nepal is a heaven on the earth. There are many places in Nepal with majestic views and beautiful sceneries that I think one should not die before reaching and experiencing those places.

Further, Nepal is a virgin place for investment. There are many sectors from tourism and manufacturing to energy and education sectors; from the minerals and gemstones to himalayan herbs and medicinal plants, Nepal truely offers a lot of advantages for the global investors. We have one of the most investors' friendly policies and regulations.

Accomplishing its unique and unprecedented political transition in the history of mankind, Nepal now is becoming the center of attraction in the whole world as the country is gearing up for rapid economic transformation and human development.

I would like to request all Korean people and investors to consider Nepal as your next destination to be and to prosper. Thank you.