Myanmar is located on the mainland of Southeast Asia. It covers an area of 677,000 square miles and is endowed with rich
resources. Among the ASEAN countries, Myanmar is the poorest, and in this respect, its importance as a trade or investment
partner has been severely limited. However, Myanmar was the richest among the ASEAN countries fifty years ago and considering
its rich natural resource endowment, has the potential to become a substantial consumer market once again.
South Korean entrepreneurs have invested in Myanmar since 1990, and since 1991, South Korea has been assisting Myanmar’s
economic development through ODA. According to official statistics, Myanmar and South Korean bilateral trade
amounted to 261.27 million USD in 2008; Myanmar’s import from South Korea was 180.7 million USD and its export to
South Korea was 80.57 million USD.
Although trade volume between Myanmar and South Korea is increasing, the full potential of Myanmar’s strategic value has
yet to be acknowledged. Myanmar has both geographic and economic importance for South Korea. At the same time, Myanmar
needs economic aid and foreign direct investment to further develop its economy. Therefore, mutual benefits can be
achieved through closer economic cooperation between Myanmar and South Korea.
This paper will analyze the current status of Myanmar’s economy and economic cooperation with South Korea and will draw
conclusions about the prospects for increased economic cooperation between the two countries. Finally, it will discuss potential
benefits that could result from increased economic cooperation and private sector investment.