Yonhap | 27 December 2024

S. Korea, Bahrain sign bilateral investment protection treaty

by Kim Seung-yeon

SEOUL, Dec. 27 (Yonhap) — South Korea and Bahrain have signed a bilateral investment treaty on cementing the legal grounds for mutual investment and economic cooperation, Seoul’s foreign ministry said Friday.

The treaty was signed between South Korean Ambassador to Bahrain Koo Heon-sang and Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s minister of finance and national economy, in the Arab state’s capital of Manama on Thursday (local time), the ministry said in a release.

The treaty, known as the Investment Promotion and Protection Agreement (IPPA), ensures mutual fair and equitable treatment, as well as prompt and efficient legal processes, for investments in each other’s countries.

"The treaty is expected to better protect the investments of our citizens and businesses entering Bahrain from non-commercial risks, and promote mutual investment and strengthen economic cooperation," the ministry said.

The agreement will come into force after being formally signed and ratified by the parliaments in both countries.

South Korea has a large presence in Bahrain’s energy, petrochemical and infrastructure sectors, with their bilateral trade reaching US$650 million in 2023.

South Korea has clinched IPPAs with 101 countries, 83 of which are currently in effect.