Since the upgrade of Cambodia–South Korea relations to a strategic partnership on May 16, the two countries have significantly broadened economic, security and cultural cooperation. The two countries, which held their first joint exercise in December 2023 on peacekeeping, recently announced plans to pursue joint naval drills, an especially notable move given that Cambodia completed its first naval drills with China’s People’s Liberation Army (PLA) at the end of May. The Korean Navy also hopes to conduct an inaugural port call in Cambodia by the end of the year.
The two partners also announced increased collaboration around infrastructure and investment. At the bilateral summit, South Korean President Yoon Suk Yeol announced his government would double its loan to Cambodia, from US$1.5 billion to US$3 billion, under its Economic Development Cooperation Fund, while extending the provision period until 2030. Cambodian Prime Minister Hun Manet also suggested the initiation of a Special Economic Zone in Cambodia exclusively for South Korean firms, an idea that has also been in discussion with Japan since February. In the weeks since these initial agreements and proposals, enhanced engagement has also broadened to civil society, with the Korea International Cooperation and Heritage Agencies jointly donating 11 pieces of equipment to the Kingdom on July 2 to support the restoration Preah Pithu temple in Siem Reap. These developments suggest joint interest in South Korea breaking into an investment landscape that is presently dominated by China.
