Korean drone battery maker considering investment in Cambodia

The leadership of South Korea-based NEO Battery Materials Ltd has signalled interest in travelling to Cambodia to discuss investment in drone battery products with public and private organisations in the country.

The company's managing director, Park Janghwan, held talks with Cambodia's ambassador to South Korea, Khuon Phonratanak, at the Cambodian embassy in Seoul on September 29.

Park said he had taken part in creating South Korea's first pilot plan for drone operations and hoped to lead a delegation to Cambodia to explore possible cooperation across government and business.

He explained that NEO Battery Materials was set up in 2021 to produce batteries for different types of drones.

Ambassador Phonratanak said Cambodia needed drones in several sectors and welcomed the company's proposal to work with Cambodian institutions.

Trade ties strengthen

Customs data from the General Department of Customs and Excise showed bilateral trade between Cambodia and South Korea rose to $858.97 million in the first eight months of 2026, a 45.7 percent increase from the same period a year earlier.

Cambodian exports to South Korea reached $293.39 million, up 41.1 percent, while imports of South Korean products climbed 48.2 percent to $565.57 million.

Economist sees room for deeper investment

On October 2, Hong Vanak, an economist at the Royal Academy of Cambodia, said stronger links between the two governments and private sectors could lift trade and draw more South Korean investors to Cambodia.

He said a Cambodia-Korea special economic zone would likely make the country more appealing to South Korean companies.

Because South Korea is a developed economy and a centre for advanced technology, Hong said, increased Korean investment could help bring newer technologies into Cambodia. He added that Cambodia welcomed all interested direct investors.

Hong also noted that South Korean investors have been an important source of funding in Cambodia for the past two decades, with Korean projects largely concentrated in real estate, construction, agriculture, agro-processing and finance.

Agreements and private-sector cooperation

Beyond the Cambodia-Korea Free Trade Agreement and the Regional Comprehensive Economic Partnership, signed by the two governments, the private sector of each country signed a memorandum of understanding on July 3, 2026.

The agreement between the Cambodian Oknha Association and the Korean Chamber of Commerce in Cambodia seeks to deepen cooperation, promote business activity and Korean investment in Cambodia, and support the sharing of information, experience and commercial opportunities.

It is also intended to contribute to sustainable economic development by making better use of the resources, potential and networks available on both sides.