[June 2025] The year 2024 marks the 10th anniversary of the Korea–Australia Free Trade Agreement (FTA), which was concluded in December 2013 and came into effect in December 2014. In 2023, bilateral trade between the two countries reached USD 50.6 billion—an increase of 66.7% compared to 2013, prior to the FTA’s implementation. As of 2024, Australia is Korea’s 6th-largest trading partner, while Korea ranks 4th for Australia. Ahead of the FTA’s 10th anniversary, in September 2024, the two countries agreed to expand their cooperation into key minerals and clean energy. Australia is considered a resource-rich nation—often described as a country where “you just dig and resources come out.”

Australia holds the world’s second-largest reserves of lithium and nickel—critical materials for EV battery production, often referred to as “the oil of the future.” It also ranks second and fourth globally in cobalt and rare earth elements, respectively. Economically, Australia is the 14th largest country by GDP as of 2024 (with Korea at 12th), and it enjoys a stable political environment. As the global effort to reduce dependence on China in supply chains intensifies, Korea–Australia economic ties are becoming increasingly strategic—moving beyond coal, iron ore, meat, and automobiles to include lithium, critical minerals, carbon capture and storage (CCS), and the defense industry. Korea relies on imports for about 95% of its mineral demand. Notably, Korea’s imports of 33 types of critical minerals from China tripled from USD 3.3 billion in 2020 to USD 9.3 billion in 2023, underscoring Korea’s heavy reliance on China.

In an interview held on May 15 at the Grand Hyatt Seoul, Rowan Petz, CEO of the Australian Chamber of Commerce in Korea (AustCham Korea), noted that Korea–Australia cooperation is “diversifying beyond traditional sectors into renewable energy, critical minerals, agriculture, and digital technologies,” and emphasized that “Korea’s advanced tech infrastructure, strong consumer market, and drive for innovation are key points of attraction for Australian investors.”

The following is a Q&A with Mr. Petz.

• Could you please introduce the Australian Chamber of Commerce in Korea (AustCham Korea)?

AustCham is the leading business organisation for Australia–Korea trade, representing over 110 member companies across sectors including energy, resources, finance, agriculture, defence, services, and advanced tech. We serve as a hub for seamless, collaborative, and dynamic business exchange—supported by embassy and trade office leadership, and driven by insights from seasoned professionals. Our mission: build an informed, open–yet vigorous commercial ecosystem in Korea.

• How does AustCham Korea support Korean companies looking to expand into Australia?

We serve as a vital bridge—providing customized support and strategic connections. We inform members using our extensive network, host seminars, briefings, and networking events featuring cross‑industry insights and real‑world advice. We also coordinate with trusted law firms, financial institutions, and headhunters to ensure smooth market access for our members.

• How would you assess the current state of economic and business cooperation between Korea and Australia?

The year 2024 marks the 10th anniversary of the Korea–Australia Free Trade Agreement (FTA), which was signed in December 2013 and came into effect in December 2014. As of 2023, bilateral trade between the two countries reached USD 50.6 billion—an increase of 66.7% compared to 2013, before the FTA was implemented. In 2024, Australia ranks as Korea’s 6th largest trading partner, while Korea is Australia’s 4th. Ahead of the FTA’s 10th anniversary, in September 2024, the two nations agreed to expand their cooperation to include critical minerals and clean energy. Australia is often referred to as a resource-rich country where “digging the ground yields resources,” underscoring its abundant natural wealth.

Australia holds the world’s second-largest reserves of lithium and nickel—key materials for electric vehicle battery production, often dubbed “the oil of the future.” It also ranks second in cobalt and fourth in rare earth element reserves. As of 2024, Australia is the 14th largest economy in the world by GDP (Korea ranks 12th) and benefits from political stability. With global efforts underway to reduce dependence on China in supply chains, Korea–Australia economic cooperation is gaining strategic importance—shifting from traditional commodities such as coal, iron ore, meat, and automobiles toward sectors like lithium, critical minerals, carbon capture and storage (CCS), and the defense industry. Korea imports about 95% of its mineral demand, and imports of 33 key minerals from China reached USD 9.3 billion in 2023—nearly triple the amount from 2020 (USD 3.3 billion), highlighting Korea’s high reliance on China.

In an interview on May 15 at the Grand Hyatt Seoul, Rowan Petz, CEO of AustCham Korea, noted that Korea–Australia economic cooperation is “undergoing diversification beyond traditional sectors into areas like renewable energy, critical minerals, agriculture, and digital technologies.” He also emphasized that “Korea’s advanced technology infrastructure, strong consumer market, and relentless drive for innovation are highly attractive to Australian investors.”

• Policy support must also play a key role. What are your thoughts?

Despite global uncertainty, Korea–Australia ties remain resilient, supported by policy alignment. The Korean Green Transition initiative and Australia’s Hydrogen Headstart program are helping to build a clean‑energy trade framework. In defence, Hanwha Aerospace’s H‑ACE plant in Geelong is producing ordnance and APCs—marking the first local manufacturing base for a Korean defence firm under Australia’s strategic initiative.

• The Australian government announced the Hydrogen Headstart Program in May 2023 to accelerate the development of green hydrogen production.

With a total investment of AUD 2 billion, the program aims to position Australia as the world’s leading producer and exporter of hydrogen. Currently, over 100 hydrogen projects are underway across the country.

H-ACE (Hanwha Aerospace Centre of Excellence) is Hanwha Aerospace’s first overseas production facility and marks the first overseas manufacturing site established by a Korean defence company. In December last year, Hanwha Aerospace signed a contract with the Australian government to supply Redback infantry fighting vehicles.

Mass production of the Redback is scheduled to begin following the completion of H-ACE Phase 2 in 2026. The Redback was specifically designed for the Australian market, and its name is inspired by the native Australian redback spider. During the bidding process, Hanwha received positive evaluations for increasing local sourcing, including steel supplied by Australian company Bisalloy.

In addition to the Redback, Hanwha Aerospace will also manufacture the AS9 self-propelled howitzer and the AS10 armoured ammunition resupply vehicle at the H-ACE facility.

• I’m curious about how Korean companies are perceived in Australia.

“More and more Australian companies see Korea as a highly capable and trustworthy partner. Korea’s advanced technological infrastructure, strong consumer market, and relentless drive for innovation are major attractions for Australian investors. With the Korean government actively embracing ESG (Environmental, Social, and Governance) principles, the regulatory environment has become much more stable and transparent than before. As a result, Korea is increasingly seen in Australia as an ideal gateway to the broader Asian market.”

• Which areas are most promising for cooperation between Korea and Australia?

“Renewable energy, critical minerals (including rare earth elements), defence, biotechnology, and advanced infrastructure projects are particularly promising. Australia’s abundant reserves of critical minerals and Korea’s expertise in battery and electronics technology offer significant synergy. There are also substantial opportunities for collaboration in infrastructure development that combines Korea’s engineering capabilities with Australia’s strong governance and financial capacity.”

• How can Korea further enhance its appeal to Australian companies and investors?

“To deepen mutual understanding of cultural and business practices between the two countries, we need to implement joint training programs, streamline visa application and issuance processes, and establish clearer regulatory guidelines in English. Additionally, expanding incentives and regulatory support for ESG-linked projects would help attract more investment from Australia — especially from institutional investors prioritising sustainability.”

• What advice would you give to Korean companies and investors looking to enter the Australian market?

“Conduct thorough stakeholder analysis and carefully review local regulations, which can vary by state. Collaborate with state government agencies as early as possible to take full advantage of available incentives. Ensure compliance with Indigenous engagement protocols to facilitate project approvals. Establish a strong ESG framework from the outset, and leverage the support networks provided by AustCham Korea, the Australian Embassy, and the relevant state investment agencies — these can significantly streamline the entry process.”

• Could you tell us about events hosted for AustCham Korea members?

“We host a variety of events designed to strengthen bilateral ties and promote trade opportunities between Korea and Australia. Our regular programs include the Australia–Korea Business Awards, Mix at Six, and the Big Aussie BBQ, all of which offer high-quality networking platforms. These events enable companies to engage directly with industry and government leaders and build meaningful partnerships.

Mix at Six is a monthly networking event that brings together business professionals from both countries in a relaxed and social setting. It’s held at the Andaz Seoul Gangnam, with 150 to 200 professionals attending. Admission is free, and light refreshments and drinks are provided, along with a lucky draw.

The Australia–Korea Business Awards recognise companies that have made significant contributions to the bilateral economic relationship. Previously held every two years, the awards were paused during the COVID-19 pandemic but are being revived this year.

The Big Aussie BBQ is an annual gathering of around 400 representatives from government, business, and diplomatic circles. More than just a barbecue, it serves as a platform for fostering ongoing dialogue and cooperation between leaders from both nations. Guests enjoy premium Australian beef and lamb alongside a selection of wine, gin, and craft beer while engaging in meaningful conversations.”