A Study on Promoting Economic and Trade Relations between Korea and Honduras

This study aims to explore strategies for entering the market by analyzing Korea's trade promotion plans for Honduras and the Honduran industrial environment.After the conclusion of the Korea-Central America FTA, the FTA with Honduras went into partial effect in October 2019, but the effect of the free trade agreement could not be significantly seen due to the influence of COVID-19.The highest amount of Korea's exports to Honduras since the two countries compiled import and export statistics was $156.6 billion in 2012, before signing a free trade agreement with Korea, and imports have yet to exceed this figure since peaking at $14.2 billion in 2011.In the meantime, cooperation between the government and companies must be made to actively develop trade and investment between the two regions due to the entry into force of the Korea-Central America FTA.In particular, in the case of countries in Central America, such as Honduras, it is difficult to attract the attention of large companies due to the limitations of the small domestic market.Therefore, large or public enterprises should actively consider entering Honduras by making proposals with initiatives and linking them with specialized SMEs, focusing on projects that have proven potential in feasibility or demand through Official Development Assistance (ODA) projects, Knowledge Sharing Program (KSP) policy advice projects, or joint consulting projects.In addition, the government should cultivate regional, trade experts, and project experts specialized in Central America to maximize the use of the Korea-Central America FTA, analyze information on infrastructure construction projects, such as SOCs ordered by the Central American Bank for Economic Integration or the Inter-American Development Bank, and provide them to related companies.This study analyzed various factors to promote trade and investment between Korea and Honduras and suggested possible measures in a situation where the effect of tariff liberalization is not seen even after the Korea-Central America Free Trade Agreement went into full effect in March 2021.