Presidential Office: "Cuba is a Major Deposit of Essential Nickel and Cobalt for Secondary Batteries... Expecting Cooperation in the Mineral Sector"

On June 5, 2016, Yoon Byung-se, Minister of Foreign Affairs, held the first official foreign ministers' meeting between the two countries with Bruno Rodriguez, Cuban Minister of Foreign Affairs, at the Cuba Convention Palace. [Image source=Yonhap News]

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The Presidential Office on the 18th expressed expectations that Cuba, a major deposit site of nickel and cobalt essential for secondary battery production, could emerge as a new market if U.S. sanctions are lifted, following the recent establishment of diplomatic relations between Korea and Cuba.

In a press release titled "Expected Effects by Sector Following Korea-Cuba Diplomatic Relations," the Presidential Office stated, "Cuba ranks 5th in the world in nickel production and 4th in cobalt reserves, showing great potential for cooperation in the mineral supply chain."

It also said, "Cuba is prioritizing overcoming its chronic power crisis as the top task for economic recovery and is seeking to expand power generation facilities and renewable energy," adding, "This can be utilized as an opportunity for Korean companies, which have strengths in energy sectors such as generators and plants, to enter the market."

The government plans to concretize a win-win cooperation model through the entry of Korean companies into Cuba. The Presidential Office emphasized, "Due to U.S. sanctions, Cuba is currently facing shortages of basic daily necessities," and stated, "Depending on future conditions, we will seek to advance Korean companies in sectors such as daily necessities, electronics, and machinery equipment." It explained that with the establishment of diplomatic relations, restrictions on Korean companies' entry could be eased upon signing official economic agreements in the future, and that opening diplomatic missions would enable close local support during the entry process.

Although Cuba is a central country in the Caribbean region, it has remained an untapped market for Korea due to the absence of diplomatic relations. Cuba is one of the three Caribbean countries with a population exceeding 10 million (Cuba, Haiti, Dominican Republic), and its per capita gross domestic product (GDP) was approximately $2,256 as of last year.

The trade volume with Korea stands at $14 million in exports and $7 million in imports, mostly conducted through third countries. Cuba possesses diverse marine resources such as sea cucumbers and produces competitive luxury food items like cigars and rum, raising expectations for expanded exports of related agricultural and marine products to Korea.

A promotional display for the Samsung Galaxy S9, globally released in 2018, is placed in a mobile phone store in Havana, Cuba. [Image source=Yonhap News]

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The Presidential Office explained that full-scale development cooperation aid, including official development assistance (ODA) focused on underdeveloped infrastructure sectors, is anticipated, and that this could be linked to the expansion of Korean companies' entry.

Under the government's focused nurturing policies, Cuba possesses world-class competitiveness in the medical and bio industries. Cuba's vaccine development and bioindustry have global competitiveness, and new growth industries such as nanobio are emerging beyond the existing pharmaceutical sector.

The Presidential Office stated, "We will utilize Cuba's medical and bio sector professionals and seek multi-layered cooperation such as joint research and development (R&D) in clinical medical fields," adding, "We will steadily build a foundation for expanding economic cooperation through this diplomatic establishment and the future opening of a resident diplomatic mission."

In particular, Korea Wave (Hallyu) is very popular in Cuba, with active voluntary spread through large-scale fan clubs. The government plans to systematically promote Hallyu through Korean language dissemination activities, introduction of Korea's development, and diverse public diplomacy cultural activities following the opening of the diplomatic mission. It also announced plans to expand sports cooperation with Cuba, a strong nation in baseball and volleyball.

The Presidential Office explained, "With an expected increase in tourists following diplomatic relations, a resident diplomatic mission will be able to provide immediate 24-hour consular assistance in case of incidents or accidents," and added, "The opening of the mission is expected to enhance consular services for Korean residents and facilitate visa application convenience for Cubans visiting Korea." Before the COVID-19 pandemic, about 14,000 Koreans visited Cuba annually.

The government also plans to actively promote veterans' policies for descendants of Koreans in Cuba and independence activists, who had been neglected due to the lack of diplomatic relations. Currently, about 1,100 descendants of Koreans who migrated from Mexico to Cuba during the Japanese colonial period in 1921 reside in Cuba.

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