South Korean construction firms, many based in South Africa, were extensively involved in construction projects with the First Lady Grace Mugabe.
South Korean ambassador to Zimbabwe Jae-Hack Oh told United States ambassador to Zimbabwe Charles Ray on 1 December 2009 that the projects included a number of apartments and shopping centres “in addition to construction at her many farms”.
These firms were seeking to expand their presence in the country, and were prepared to do whatever was necessary to achieve this goal.
Oh said because of the debt crisis in Dubai, a number of South Korean firms were considering relocation to Zimbabwe but they were being held by the lack of political stability. Even Korean companies in South Africa were also considering moving to Zimbabwe, he said.
Full cable:
Viewing cable 09HARARE931, AMBASSADOR’S COURTESY CALL ON REPUBLIC OF KOREA’S
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Reference ID |
Created |
Released |
Classification |
Origin |
VZCZCXRO5293
RR RUEHBZ RUEHDU RUEHMR RUEHRN
DE RUEHSB #0931 3361404
ZNY CCCCC ZZH
R 021404Z DEC 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 5174
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHAAA/NSC WASHDC
C O N F I D E N T I A L HARARE 000931
SIPDIS
AF/S FOR BRIAN WALCH
NSC FOR SENIOR AFRICA DIRECTOR MICHELLE GAVIN
E.O. 12958: DECL: 12/02/2019
SUBJECT: AMBASSADOR’S COURTESY CALL ON REPUBLIC OF KOREA’S
AMBASSADOR TO ZIM
Classified By: AMBASSADOR CHARLES A. RAY FOR REASONS 1.4 B,D
¶1. (C) SUMMARY: The South Korean (ROK) community in
Zimbabwe, though small, is heavily involved in the economy
and works closely with ZANU-PF officials, especially Grace
Mugabe, the wife of the president. In addition to small
firms (photo shops and wig stores), Koreans are involved in
coal and gold mining. Many ROK businesses in South Africa
and Dubai have considered relocating to Zimbabwe, but have
hesitated because of the lack of political stability. ROK
firms provide ‘gifts’ to ZANU-PF officials for the privilege
of doing business here. The ROK has been trying to negotiate
a bilateral investment treaty with Zimbabwe for over four
years, a process that has been further complicated with
creation of the coalition government. Korean construction
firms, many based in South Africa, do a lot of work for Grace
Mugabe. END SUMMARY.
¶2. (C) I met with South Korean Ambassador Jae-Hack OH at his
residence on December 1, 2009. Oh is an outgoing individual
who speaks very good English, but who is not necessarily very
pro-American. The Republic of Korea (ROK) has had a
diplomatic presence in Zimbabwe for several years. Prior to
the opening of the ROK embassy, the DPRK had an embassy here,
but when Seoul sent its ambassador, Pyongyang moved its
embassy to South Africa and now only has a small trade
mission in Zimbabwe. There are probably North Korean
security and military officials here, but Oh was not aware,
or at least claimed not to be aware, of where they are. He
said that the South Korean community in Zimbabwe is small,
under 200 (including children), and consists mainly of small
business owners. Koreans run a number of photo shops and wig
stores in Harare. Koreans are also heavily involved in coal
and gold mining, mainly by companies based in South Africa.
¶3. (C) Because of the debt crisis in Dubai, a number of ROK
firms there have been considering relocation to Zimbabwe, as
have companies in South Africa. The thing delaying them, Oh
said, is the lack of political stability. The presence of
massive corruption has not deterred Korean firms, and in
fact, many routinely give ‘gifts,’ including expensive cars,
to ZANU-PF officials to grease the skids for business deals.
Seoul has being trying to negotiate a bilateral investment
treaty with Zimbabwe for over four years. When the ZANU-MDC
government was formed, Zimbabwe provided a new proposed draft
which Oh said was drastically different from the draft that
Seoul provided several years ago. He said it is likely the
negotiations will drag on for several more years.
¶4. (C) South Korean construction firms, many based in South
Africa, are extensively involved in construction projects
with Grace Mugabe, wife of the president. Oh said this has
included a number of apartment and shopping center projects
in addition to construction at her many farms. These firms
seek to expand their presence in the country, and are
prepared to do whatever is necessary to achieve this goal.
¶5. (C) COMMENT: Oh was a bit disdainful of EU colleagues
here, saying that their insistence on sanctions and other
restrictive measures have hurt the business climate and not
had the desired impact. A large part of that view is shaped
by the fact that Korean business people deal mostly with
ZANU-PF officials, and they repeat to him what their ZANU-PF
interlocutors say. There is also an apparent resentment that
Qinterlocutors say. There is also an apparent resentment that
the EU embassies don’t seem to involve Korea in their
discussions about events. There has been a decidedly
Euro-centric focus in a lot of the discussions, and Korea is
not really involved in the same degree of aid and assistance
as other countries. That said, there does seem to be a
sentiment among some of the EU ambassadors to reach out to
Asian and African counterparts more than has been the case in
the past. END COMMENT.
RAY
(25 VIEWS)
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