Germany Looks Forward to Increased High-tech Cooperation with Korea

On the occasion of their National Day on Oct. 3, BusinessKorea met with Mr. Rolf Mafael, Germany's ambassador to Korea. BusinessKorea asked the ambassador about his country's holiday, the growing relationship between the countries' cities and research institutes, and touched on ways to bring the countries even closer together. The following are excerpts from the interview.

Please tell us the significance of Germany’s National Day on Oct. 3.

October 3rd became the National Day of Germany in 1990, when East Germany and West Germany reunified. German unification went through three stages. The first stage took place on November 9, 1989, when the Berlin Wall came down. This day was a milestone on the way to freedom for East Germany. The second stage took place in the spring of 1990, when free elections were held and international negotiations led to the signing of the treaty that finally settled the status and borders of Germany. In a third stage, the two Germanys were unified as one on October 3, 1990.

How does Germany celebrate its Natio​nal Day?

Every year, one of our federal states is selected to host the National Day ceremony. In 2014, Lower Saxony and its capital Hanover were chosen as hosts. This day is celebrated each year with a ceremonial act and a citizens' festival with the federal council presiding over the federal event.

The Mayor of Leipzig, Germany made an official visit to Gwangju City on October 3rd. Please tell us the details about the cooperation between the two cities.

An MOU between Leipzig and Gwangju was signed a couple of years ago. Step by step, the two cities are now putting this agreement into effect. Leipzig and Gwangju have many things in common. Both cities have a history of revolutionary or democratic movements. And both cities are cities of art. In Leipzig, Johann Sebastian Bach was born. And Gwangju is the art capital of Korea. In that sense, there is a good potential for cooperation in the arts and music between these two cities. And in March of this year, the German government opened the Goethe Center in Gwangju at Jeonnam National University. The mayors, Burkhard Jung of Leipzig and Jang Hyun Yoon of Gwangju, also discussed further cooperation in the medical field.

We are very happy that more and more German cities are showing interest in Korea. Dresden and Daejeon have recently agreed to cooperate in engineering, and there is a port partnership between Hamburg and Busan. Also, the two capitals, Berlin and Seoul, are organizing cultural exchanges as well.

Please tell us what was discussed and agreed at the summit between Korean President Park Geun-hye and President Joachim Wilhelm Gauck at Bellevue Palace on last March 26.

President Gauck was born in East Germany. One of his strengths is his experience in German unification, particularly the experience of someone who has been a part of it from the East German perspective. As a person who has gone through this experience, he is well aware of how aggressively the communist regime worked. Therefore, he had strong opinions on how it should change. In that sense, he has much to contribute to the present discussion in Korea.

Could you tell us of your​ point of view on what industrial sectors would be most promising for Korean companies to invest in Germany?

Economic ties between Korea and Germany have grown constantly over the last 10 years. If you compare the data from both 2002 and 2012, you will see that trade has increased more than twofold, from US$10 billion to US$25 billion. German companies have invested US$10 billion in Korea, and Korean companies around US$4 billion in Germany.

The key area of cooperation is the automobile industry, a sector in which both countries are very strong. Electrical engineering, machine manufacturing, and ICT are also fields of cooperation.

In both countries, wages are relatively high, which is a challenge for labor intensive production or industry. Therefore, we see a shift to more intellectually-driven industries. The focus of our economic cooperation is on hightech areas. In these areas, both of us are strong, and we have complementary competences. Cooperation in these sectors will be mutually beneficial and help both of us to remain strong and competitive in the globalized market.

Economic ties between Korea and Germany have grown constantly over the last 10 years. If you compare the data from both 2002 and 2012, you will see that trade has increased more than twofold, from US$10 billion to US$25 billion. German companies have invested US$10 billion in Korea, and Korean companies around US$4 billion in Germany.

The key area of cooperation is the automobile industry, a sector in which both countries are very strong. Electrical engineering, machine manufacturing, and ICT are also fields of cooperation.

In both countries, wages are relatively high, which is a challenge for labor intensive production or industry. Therefore, we see a shift to more intellectually-driven industries. The focus of our economic cooperation is on hightech areas. In these areas, both of us are strong, and we have complementary competences. Cooperation in these sectors will be mutually beneficial and help both of us to remain strong and competitive in the globalized market.

If we look at the four key areas of our cooperation and also the petrochemical industry, it becomes obvious: The key to a successful future is research and development. Here we need to strengthen and broaden our cooperation. One area we can work on, for example, is e-mobility. Korea is a successful manufacturer of batteries and Germany is one of the top countries in mechanics.

A Korean company has recently entered the German solar energy market. By joining forces with German companies, which are technology leaders in renewable energy, Korean businesses can gain a lot. And there are more sectors to explore, e.g. robotics, semiconductors, biotechnology, and nanotechnology.

Many German companies are rated among the top of the industry in Korea. How do you think German companies achieved this?

Indeed, German products are highly appreciated by Korean consumers. They portray the image of high quality and state-of-the-art technology. This is certainly one reason for the success of e.g. the German automobile companies in Korea.

But German car manufacturers are not only selling cars in Korea, but they are also purchasing auto parts from Korean suppliers. This is a very proactive strategy by the German industry, encompassing the country it is profiting from by not only selling finished products, but also buying parts at the manufacturing stage, thus benefiting the economy of both countries. This works of course the other way round as well, with Korean global players like Samsung and Hyundai using parts from German suppliers.

Please introduce your plan to promote mutual understanding between peoples of the two countries via exchanging cultural programs, etc.

There is already quite a presence of German culture in Korea. Many German-based orchestras tour regularly in Korea. Last year, the Berlin Philharmonic Orchestra performed here, and other German-based orchestras such as the Munich Philharmonic Orchestra and the Dresden Philharmonic Orchestra also gave concerts. The new director of the Korean National Ballet, Kang Suejin, was previously the head ballerina at Stuttgart Ballet. A strong and central pillar in our non-commercial cultural exchanges is the Goethe Institute, which organizes a multitude of various programs and events all the year round.

Unfortunately, the number of people studying German language in Korea has dropped significantly after the change in the regulation in university entrance. We are working hard to improve this situation. Now about 15 high schools in Korea are being supported by the German government to teach the German language. The Goethe Institute is expanding its language centers throughout Korea. Two years ago, there were just two language institutes in Korea, one in Seoul and another in Daejeon. Now, there are ones in Daegu and Gwangju, and there will be another one in Busan next year. This is a big step forward and a great opportunity for Koreans who want not only to learn German but later go to Germany for further study.

We also promote student exchanges, university exchanges, and science cooperation programs. It is essential to attract young people and to intensify the exchange between researchers. In this context, an international conference on research cooperation was held on Oct. 2. The presidents of five major technical universities came to Korea and met with the presidents of Postech, KAIST, and others.

One project I feel strongly about and would like to strengthen are high school exchange programs. In my opinion, this is very important, since early experience in another country often determines our future decisions.