Diplomacy&Trade 2020 September

SEPTEMBER 2020 HUF 1710

CUBED

THE FIRST AND ONLY BOOK BY HUNGARIAN INVENTOR ERNŐ RUBIK LAUNCHES IN HUNGARY AND 11 OTHER COUNTRIES, TITLED "CUBED - THE PUZZLE OF US ALL." READERS MAY FIND OUT HOW A SMALL PUZZLE BECAME, AND REMAINS, A PHENOMENON THAT RESONATES WITH A GLOBAL AUDIENCE AND CONNECTS TO FIELDS ACROSS THE SPECTRUM OF HUMAN CREATIVITY. SEE MORE ON page 43

Republic of Korea Last year, the Republic of Korea overtook Germany as the top source country of foreign direct investments in Hungary. The Korean Ambassador Kyoo Sik Choe explains to Diplomacy&Trade the reasons behind this development. He also talks about the handling of the COVID-19 pandemic in his country and how much he appreciates the sympathy of Hungarians for the Korean victims of a boat accident in Budapest last year. see articles on pages 16-32

Saudi National Day

This year marks the 25th anniversary of the establishment of diplomatic relations between Saudi Arabia and Hungary. On this occasion, and on that of the country’s national day, the Embassy of the Kingdom of Saudi Arabia publishes in Diplomacy&Trade a compilation that includes an interview with Saudi Ambassador Mohammed A. Almatrafi, a report on Saudi Arabia’s Presidency of the G20, a summary of Saudi-Hungarian diplomatic relations as well as a look at Saudi tourism.

see more on pages 08-13

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Rubik – a name known around the world. The popularity of Ernő Rubik’s surname surpasses even that of the legendary footballer Ferenc Puskás when it comes to famous Hungarians. His own story of his Magic Cube has now been published in Hungary and another eleven countries, including the U.S., the U.K. and China. This month’s cultural section includes some of Mr. Rubik’s insights from ‘Cubed’.

The Saudi Embassy in Budapest has chosen to publish a compilation in Diplomacy&Trade for the celebration of the 90th anniversary of the National Day of the Kingdom of Saudi Arabia. It includes an interview with the Ambassador as well as information on the Kingdom’s international role, its relations with Hungary and its ambitious goals in tourism.

Our special Focus section this month features relations between the Republic of Korea and Hungary in recognition of Korea’s National Foundation Day (Gaecheonjeol). The Republic of Korea has recently become the largest source country of foreign direct investments (FDI) in Hungary. The Focus also includes the Korea Trade-Investment Promotion Agency (KOTRA) and the Korean Cultural Center, the Incheon Smart City, remembrances of the sightseeing boat tragedy that took the lives of Korean tourists, and the activities of Korean firms in Hungary.

We continue last month’s Swiss Focus by remembering the life-saving mission of Swiss diplomat Carl Lutz and presenting two more Swiss investments in Hungary.

Our international analyst looks at the current winning – or losing – chances of the two major candidates for the presidency of the United States: Donald Trump and his challenger, Joe Biden. You can read the analysis now and find out the result on November 4!

This month’s business pages are about real estate: the certification company TÜV Rheinland moves to a new location in Budapest, while a new residential area is born in the Buda Hills.

WittyLeaks is by the Ambassador of Peru this month. He looks at bilateral relations with Hungary through personalities and explains why he does not feel to be a newcomer to this country, while the wine page presents the Szekszárd-based family winery Heimann & Fiai that has launched its new line of wines this year.

A strong second wave of the COVID-19 pandemic is upon us. Protect yourselves, your families, your neighbors and your associates by following the guidelines. Be smart!

Hungary: a good location for Swiss business

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Event guide to the Hungarian capital

­­ contents 05 ON THE RECORD 06-07 COMPANY BRIEFS 08-13 SAUDI NATIONAL DAY

Greetings by Ambassador Mohammed A. Almatrafi; Saudi Arabia and the G20; Saudi-Hungarian diplomatic relations; Tourism & visa; Strongholds of Saudi tourism 14 ANALYSIS A truly historic presidential election?

16-32 KOREAN FOCUS

Peter Freed PUBLISHER

AND DON’T FORGET

monthly in print - daily on the web

www.dteurope.com

Timeless elegance on top of Budapest

Interview with Ambassador Kyoo Sik Choe; KOTRA; HIPA; Samsung SDI; LG; Cultural Center; Incheon City; KDB Bank; Lotte; Dongwha; SungEel

33 WITTYLEAKS

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page 41

34-35 BUSINESS TÜV Rheinland moves to new location; White Star develops residential area in the Buda Hills 36-39 SWISS FOCUS

Interview with Deputy Head of Mission István Kocsis; Roche; Carl Lutz memorial walks; Straumann

40 WINE

Heimann & Fiai winery

41 WHAT’S ON

Concerts, festivals, events and exhibitions in and out of Budapest

42-43 CULTURE

World Press Photo; ‘Cubed’ by Ernő Rubik

by the Ambassador of Peru

PUBLISHER: Peter Freed EDITOR: Sándor Laczkó COPY EDITOR: Joyce Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga DISTRIBUTION MANAGER: Tibor Ocsenás ADMINISTRATION: Éva Madarász CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Raúl Alfredo Salazar Cosio PHOTO CONTRIBUTORS: depositphotos.com (Cover), Anchal Vohra/Wikipedia, petkupa.hu, Bernhard Steiner/Wikimedia, Gedeon Richter Plc., depositphotos.com,

GERMAN FOCUS – COMING SOON

Budapest Airport, alteo.hu, Embassy of the Kingdom of Saudi Arabia, g20.org, UN Photo/Evan Schneider, Barna Burger/Prime Minister’s Press Office, Ádám Éva, HIPA, Samsung SDI, LG, Incheon Smart City, László Szili, Lotte Aluminium, Dongwha Electrolyte, Embassy of Peru, White Star Real Estate, Roche Hungary, Gábor Bankó, Straumann Group, Zsófia Pályi, Bálint Hirling, Albert Kis, Jef Rabillon, Dor Film/Lukas Gnaiger, Museum of Fine Arts - Hungarian National Gallery, Theo O. Krath, Museum of Applied Arts Budapest/Gellért Ámen, Yasuyoshi Chiba, Esther Horvath, MTI Photos: Zsolt Czeglédi, Szilárd Koszticsák,Tamás Sóki, Balázs Mohai, Zsolt Szigetváry

Diplomacy&Trade is preparing a special section on Germany, Europe’s financial powerhouse and one of Hungary’s most significant investors as Germany holds the rotating Presidency of the Council of the European Union in the second half of this year. With the new German Ambassador to Hungary, Johannes Konrad Haindl, we discuss the program points of the German EU Presidency as well as the role of German investors in Hungary. Also discussed are aspects of bilateral relations, including issues of security and defense apropos a recent visit to Hungary by the German Minister of Defense. In addition, we will present bilateral relations as seen by the German-Hungarian Chamber of Industry and Commerce, the Deutsche Wirtschaftsclub or the Goethe Institut and present several German investors in Hungary.

Copyright 2004-2020 DUAX Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by DUAX Kft. The opinions published in the magazine do not necessarily reflect the opinions of DUAX Kft.

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on the record

HUNGARIANS IN LEBANON TO HELP AFTER EXPLOSION

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ZSOLT CZEGLÉDI/MTI, SZILÁRD KOSZTICSÁK/MTI, ANCHAL VOHRA/WIKIPEDIA, PETKUPA.HU, ZSOLT CZEGLÉDI/MTI, BERNHARD STEINER/WIKIMEDIA

HUNGARY CLOSES ITS BORDERS

At the end of August, Gergely Gulyás, Head of the Prime Minister’s Office, announced that the government was of the view that “the second wave of the epidemic has begun in Europe.” Therefore, he said, from September 1, foreign citizens may not enter the territory of Hungary without a specially justified cause. He stated that regarding border protection, Hungary is returning to the rules of the first wave.

“As a main rule, from the beginning of September, foreign citizens may not enter the territory of Hungary, only in justified cases; for Hungarian citizens coming from abroad, the requirement is 14 days compulsory home quarantine or two negative coronavirus tests,” he said, adding that these tests must be performed in Hungary. “We can only accept results if the testing takes place under controlled laboratory conditions in Hungary,” Gulyás explained.

Regarding the upcoming start of the school year, the minister said that the government is doing everything so that “schools do not have to close, and education can take place within a normal framework. The government has also decided that school closures can be assessed on an individual basis if there is a high rate of infection in an institution.”

August 20th is a national holiday in Hungary as the Day of King Stephen, the founder of the Hungarian state. In the morning, the Hungarian flag was raised on Kossuth Square in front of Parliament to the tune of the National Anthem by the ceremonial guard of the Hungarian Defense Forces. The event featured the central military orchestra and the national ceremonial mounted unit in the presence of state leaders, representatives of the government, representatives of state and military organizations and the diplomatic corps, and hundreds of spectators. The President of the Republic, János Áder pointed out at the ceremony that "on the holiday of the founding of our state, we rightly feel that the history of the Hungarians, – the last more than a thousand years,– like a cathedral reaching to the sky – is both fascinating and difficult to get over it. Legislative rulers, destinydetermining battles, self-sacrificing heroes, valiant victories and tragic losses shaped it."

This year, due to the coronavirus, most of the traditional programs, including the air display, the fireworks display and the Holy Right Hand procession were cancelled.

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PET CUP TO CLEAN THE TISZA RIVER

The 8th PET Cup took place this August. The crew of boats made of recycled materials participating in the competition were tasked with freeing the section of the Tisza River between Záhony and Tokaj from several tons of river waste.

Attila Dávid Molnár, the president of Természetfilm. hu (‘Nature film’) Association, where the original idea comes from, said that about 160 participants of this year's event continued where they left off last year: in 2019, the river was freed of plastic and other waste on the nearly eighty-kilometer section between Tivadar and Záhony. The cleaned section of the river remained clean with the help of the water authority and the police, as the mass of waste coming from abroad is being stopped by professionals, so the shorelines have become virtually waste-free. Onshore programs included lectures, educational and entertaining competitions on topics such as cultural treasures, natural history and waste recycling of the Tisza.

COMMEMORATIONS ON THE NATIONAL DAY OF AUGUST 20TH

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The Special Medical and Rescue Team of the University of Debrecen arrived in Beirut on August 7 to take part in rescue operations after the explosion that devastated the Lebanese capital three days before. The team, which included anesthesiologists, neurologists and surgeons as well as a technical expert, took with them about 200 kilograms of equipment: medical diagnostic tools, bandages, medicine (like antibiotics and painkillers), rescue tools and ventilators for the one-week mission.

A day after their arrival, the team was helping out in a private hospital. "We have inspected several patients in critical condition, including an eight-year-old girl in coma," Dr. András Késmárky told the newscast of the Hungarian commercial channel RTL Klub. In addition to the state and military hospital, the Hungarian rescue team conducted inspections in the Russian contingent camp the following days, but due to the riots, they had to conclude this work earlier than expected and return to their base.

They visited almost every hospital in Beirut and consulted with the directors. They cared for 20-30 very seriously injured patients and, in addition, they treated at least fifty bandaged injuries.

UPCOMING NATIONAL DAYS September 2 7 8 16 18 21 21 23 October 1 1 1 3 3 10 10 12 18 23 24 26 28 29

Vietnam Brazil North Macedonia Mexico Chile Malta Armenia Saudi Arabia Cyprus China Nigeria Germany Iraq Taiwan Cuba Spain Azerbaijan Hungary Zambia Austria Czech Republic Turkey

National day Independence day Independence day Independence day National day National day National day National day National day Independence day Independence day Independence day National day National day National day National day Independence day National day Independence day National day Independence day National day

DEBRECEN FLOWER CARNIVAL IN PANDEMIC FORMAT

The Carnival of Flowers, held annually in the eastern Hungarian city of Debrecen on the national holiday of August 20th since 1966, was different this year due to the COVID-19 situation. Every year, dozens of carriages decorated with compositions of hundreds of thousands of fresh flowers pass through the streets of Debrecen.

The parade is accompanied by Hungarian and foreign dancers and folk groups.

This year, however, due to the pandemic, the traditional procession was canceled.

Instead, the carriages of different themes were displayed to visitors on the main square of the city.

ZUGLIGET CHAIRLIFT ('LIBEGŐ'): 50TH ANNIVERSARY

The Zugliget Libegő (Chairlift) was inaugurated on August 19, 1970, taking people from Zugliget (District XII) in the Buda Hills to János Hill in the Hungarian capital. Taking advantage of the forced downtime due to COVID-19 pandemic restrictions, the fifty-year-old chairlift’s mechanisms were repaired earlier this year. As part of the reconstruction, the operation of the lift became even safer with the renovated drive system. The chairlift route from Zugliget to János Hill is 1,040 meters long, the level difference between its two stations is 262 meters, and it travels this distance in about 12 minutes.

The support cable runs under the wheels of the columns in two places and above the wheels at the others. Its upper station is located on the Hármaskút roof, slightly below the top of the 527-meter high János Hill. The Children's Railway can be reached from 'János-hegy' or 'Virágvölgy' stations by a short walk through the forest.

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­company briefs SALES MILESTONE AT GEDEON RICHTER

DECLINING REVENUES AT MAGYAR TELEKOM

Erste Bank Hungary set aside HUF 17 billion in risk costs in the first half of the year, reducing the bank's profit to almost zero. Still, they are of the view that the situation is already improving. “We have conceded one goal, maybe there will be another, but we will win this match,” Jelasity Radován, President and CEO of Erste Bank Hungary said at the bank’s online press conference in August. This is the first time that Erste has calculated a risk cost of after a four-year hiatus, It amounts to HUF 17 billion, hvg.hu reports.

Profit after tax decreased to HUF 27 million. Except for this amount, all results were recorded as risk costs in the first quarter. Erste's operating revenues remained almost unchanged, declining by one thousandth, while operating expenses increased by 8%.

The retail loan portfolio increased from HUF 91 billion last year to HUF 139 billion. The new corporate loan portfolio decreased from HUF 96 billion to HUF 82 billion. Erste estimates that there will be no significant risk costs for the rest of the year.

László Harmati, the bank's deputy chief executive officer for retail, spoke about the fact that new lending for mortgages will not reach the 2019 level.

So far, the growth is 7% compared to the first half of 2019, but it consists of a good first quarter, a weaker April-May, and a particularly bad June with a 23% decline, which means the trend is not favorable. Recent data already show a slight increase, but the figures are lower than last year.

“We highly appreciate our extensive and excellent cooperation with Cargolux, and can state that this year our fruitful cooperation has come of age,” Kam Jandu, chief commercial officer of Budapest Airport said. He added that “the last 18 years had many happy moments as well as challenges, as we experienced the effects of the economic crisis together after 2008 but also celebrated the day in 2019 when the first Cargolux jumbo was taxiing to the apron of the new BUD Cargo City. In 2020, in the fight against the coronavirus pandemic, dedicated cargo flights have become more important than ever as Cargolux offered one of the most efficient ways of shipping medical equipment to Hungary.”

In the view of Domenico Ceci, EVP Sales & Marketing at Cargolux, the company is “proud of this milestone that reflects our seamless collaboration with Budapest airport and its cargo community. Over the years, our collaboration has strengthened, and each party has witnessed the benefits of this partnership. We look forward to further building on this achievement and consolidating our position as the leading cargo carrier in the region.”

CARGOLUX: 18 YEARS IN HUNGARY The airport management company Budapest Airport has welcomed the 3500th flight of Cargolux at Liszt Ferenc International Airport. The Luxembourg-based airline has been ensuring connections between airports around the world, air freight operators, and Budapest Airport for 18 years.

18 years, 3500 flights, more than 200 000 tons of air cargo of the electronics, automotive, and pharmaceutical industries, and livestock – this is Cargolux in Budapest, in a nutshell. The airline commenced its operation to and from Budapest in 2002, based on Far Eastern imports and exports from Hungary, and has maintained its operation at the airport of the Hungarian capital without interruption in the last 18 years, the airport management company Budapest Airport said in a statement. The route network of Cargolux comprises, mainly, the Hong-Kong and Zhengzhou flights, which travel on from Budapest to the Luxembourg base of Cargolux from where cargo can be forwarded to numerous destinations worldwide. This explains the main attraction and success of the airline, as an effective and widely accessible route network and freight capacity are crucial for the air cargo industry.

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GEDEON RICHTER PLC., DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM, BUDAPEST AIRPORT

HOPEFUL EXPECTATIONS AT ERSTE BANK

Magyar Telekom published its financial results for the second quarter and first half of 2020 in August. Among the financial highlights, the results reveal revenues declined by HUF 3.6 billion, or 2.2% year-on-year, to HUF 157.2 billion in the second quarter of 2020, driven by lower contribution from the SI/IT business segment. Also, gross profit declined by HUF 2.5 billion, or 2.7% year-on-year, to HUF 90.1 billion in the second quarter of 2020, attributable in part to the impact of COVID-19 on the profitability of mobile and fixed line services. Net debt grew to HUF 471.6 billion at June 30, 2020, corresponding to a net debt to total capital ratio of 43.2% driven by the spectrum and dividend outpayments and sharebuyback transaction during the second quarter of 2020.

As for operational highlights, the gigabit capable network reached over 2.2 million access points in Hungary by the end of the second quarter of 2020. Following the launch of 5G services in early April 2020, Magyar Telekom is now able to offer significantly higher bandwidth, lower latency and seamless connectivity. The service has been subsequently extended and now covers new areas in Hungary such as parts of the Lake Balaton. Also, Magyar Telekom signed a supplier agreement with Ericsson to support the modernization of the mobile network and the roll-out of 5G services.

Commenting on the report, Magyar Telekom CEO Tibor Rékasi said that the company "has been through an extremely challenging second quarter with COVID-19 impacting our operations in many ways. I am very proud that we supported families, communities and businesses allowing for enhanced digital cooperation during this extraordinary period. At the same time, we were equally successful in preserving the profitability of Magyar Telekom by delivering strong results in the second quarter despite fast-changing external conditions.”

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For the first time in history, an original molecule invented by a CEE headquartered pharmaceutical company (Gedeon Richter's Vraylar), reached blockbuster status in the USA during the first half of 2020. "Thanks to the outstanding performance of our trusted partner Abbvie, Vraylar’s, turnover exceeded USD 1 billion in the second quarter, which triggered the receipt of a sales milestone. Royalty revenues also grew on the back of robust sales dynamics in this period, putting the US on top of our most important markets," Gábor Orbán, the CEO of the Hungarian pharmaceutical company Gedeon Richter Plc. said on the website of the Budapest Stock Exchange.

He added that their specialty business is well on the track with increasing sales of their core Women’s Health franchise and promising performance of their first biosimilar, teriparatide.

Gedeon Richter Plc. has posted strong results to date in 2020 despite weaker demand for drugs due to less frequent patientdoctor in-person encounters due to the pandemic. Limitations on visits by sales staff and on direct promotional activities pose further challenges.

"Richter’s goal remains to ensure a sustainable supply of high quality and affordable medication worldwide, so we redouble our efforts to keep our team safe while striving for operational excellence. Our corporate culture of trust and our vertically integrated business model remain key to successfully navigating through these challenging times,” the CEO pointed out.

­company briefs TELEKOM EXPANDS 5G SERVICE AREA IN HUNGARY

ALTEO REPORTS SIGNIFICANT GROWTH OF REVENUES In the first half 2020, both the revenue and net after-tax profit increased significantly at the Hungarian energy company, ALTEO Group. The 33% increase in sales revenue was accompanied by a 120% rise in after-tax profit. A report by the Group says the growth achieved not only reflects the success in investment and acquisition activities, but – disregarding the impact of COVID-19 – also an outstanding performance of the existing portfolio.

The document adds that the increase of the Group’s profit is primarily the result of the growth observed in the energy production segments, which, in turn, is the result of both the investment program and the optimal utilization of existing capacities. "Thanks to robust cost-control, the energy services segment performed in line with expectations despite the external construction works delayed as a result of COVID-19," the report points out.

By the end of August, Magyar Telekom’s service achieved a new milestone by switching on dozens of new base stations, making the commercial service, offering gigabit download speed available in 23 towns, a press release by the company said. On April 9, Magyar Telekom launched their commercial 5G service, which can be used with a 5G capable device and a suitable monthly fee based package, in areas covered. Now, the expanded coverage area includes certain parts of Budapest, Budaörs, Zalaegerszeg, Debrecen, Kecskemét, Szeged and Szombathely, plus certain locations of 16 towns and villages around Lake Balaton.

As the company’s CEO Tibor Rékasi pointed out, “at Magyar Telekom, we have been working for years on contributing to the digital development of Hungary, making our customers' everyday life easier, more limitless through our devices and services. Our giga strong network provides a sound basis for that, and we have reached a new milestone in its development. We are proud that our gigabit bandwidth network is available at 2.2 million points – that is for 40% of homes and businesses in Hungary, and that gigabit speed is also available in our 5G service.”

A three-year price record for the shares of the Hungarian pharmaceutical company Gedeon Richter was broken on August 24: the price rose above HUF 7,300 at the Budapest Stock Exchange. The company is one of the winners of the coronavirus epidemic helped by the weakening of the Hungarian currency, and its sales are not affected by the crisis, in fact, cariprazine is doing particularly well.

"In the current crisis, pharmaceutical companies have remained pillars of stability.

Richter has also done well this year. Its generic pharmaceutical portfolio has remained stable in the COVID crisis and has even grown since it was not affected by the crisis. The U.S. sales of [another Richter product] Allergan have also been rising for several quarters, the company reports record sales data," Attila Gajdács, equity analyst at OTP Fund Management told the business site napi.hu

RICHTER SHARE PRICE BREAKS RECORD

NILFISK NEW IT INNOVATION & HR SERVICES HUB IN HUNGARY Nilfisk, a leading global manufacturer of cleaning machines for professionals and consumers, is expanding its footprint and investment in Hungary with the establishment of a new joint IT innovation & HR Services hub in Budapest. Nilfisk has been present in Hungary for more than 20 years with assembly facilities in Szigetszentmiklós and Nagykanizsa. The new hub reinforces the longterm presence of the company in Hungary.

Nilfisk is a leading global manufacturer of cleaning machines for professionals and private consumers. The company has sales companies in 40+ markets with a total annual revenue of EUR 967 million. Nilfisk was listed on the stock exchange in 2017 and has since set out to transform the company from a traditional manufacturing company to a provider of cleaning robots and digital cleaning solutions.

"Nilfisk is a global leader in the professional cleaning industry, and we are happy to be expanding our footprint and investment in Hungary. Already today, Hungary is a key location for us due to the country's strong production and engineering capabilities and large network of suppliers – as well as the close geographical proximity to Nilfisk's key markets. Today, we have two production sites in Hungary, and now, we add a third site as we establish a new joint IT Innovation & HR Services hub. New specialists have started at the new joint hub and we will continue to recruit specialized competencies within IT to further strengthen our internal knowledge base," according to Anders Liechti, Nilfisk Group Vice President, Head of Transformation and IT.

INCREASING STATE SUPPORT FOR GROWING HOP IN HUNGARY The size of Hungarian hop plantations may increase by another twenty hectares due to the fact that – following the subsidies of previous years – the Ministry of Agriculture will launch another support program this year with a budget of HUF 150 million to support the domestic production of beer. In Kastélyosdomb, W Hungary, the Hungarian Interchurch Aid, with the support of HEINEKEN Hungária, planted one hectare of hops from Perle, Saazer and Chinook varieties, which are widely known hop types. The aim of the joint initiative is to increase the amount of high-quality Hungarian raw materials in beer production. HEINEKEN Hungária has been working since 2016 to increase the amount of domestic raw materials in its products, and thanks to the initiative, after Hungarian barley – as well as and cherries and elderberries used in radlers –, hops can now also be Hungarian.

Hop growing has a long tradition in Hungary, but has declined in recent decades. The joint program of the Hungarian Interchurch Aid and HEINEKEN Hungária intends to revive this tradition. The plants, planted two years ago, are yielding large quantities (hundreds of kilograms) for the first time this year. With the increase in yield, in another two years' time, they will be able to make one and a half tons of hops per hectare Diplomacy-n-Trade.ai 1 2017. 02. 27. available for domestic beer production.

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ALTEO.HU, DEPOSITPHOTOS.COM, TAMÁS SÓKI/MTI

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INTERVIEW WITH THE AMBASSADOR OF THE KINGDOM OF SAUDI ARABIA, MOHAMMED A. ALMATRAFI

Mr. Ambassador, it is the 25th anniversary of establishing diplomatic relations between Saudi Arabia and Hungary. Anniversaries are good opportunities to take stock of the period since 1995. How would you summarize the evolution of the political relations between Saudi Arabia and Hungary during this past quarter of a century?

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Saudi-Hungarian political relations are characterized by three key features; mutual respect, common interests and mutual understanding. Both countries believe in cooperation as an effective tool in international arena.

The 25th anniversary of establishing diplomatic relations between Saudi Arabia and Hungary is S E P T E M B E R

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25 YEARS OF DIPLOMATIC RELATIONS

a significant moment, not only to evaluate the current development of bilateral relations, but also, importantly to explore future undiscovered opportunities for cooperation in all fields.

I believe that the political relations with Hungary have been steadily growing during the last 25 years. The General Agreement on Cooperation between the Government of the Kingdom of Saudi Arabia and the Government of Hungary signed on Budapest 2010 laid down the road for enhancing the existent friendly relationship between the two countries. This General Agreement stipulates the promotion of cooperation in areas of economy, trade, investment, education, science, technology, culture and tourism. With regard to the political relations, both countries signed the Memorandum of Understanding on Political Consultation between the two Foreign Ministries in Riyadh 2011. This MoU represents the framework for Saudi Arabia and Hungary to hold regular bilateral consultations and discussions on different issues of common interests.

The high-level contacts and official visits have played a key role in promoting political relations between Saudi Arabia and Hungary. I particularly point out to the official visits of HE Mr. Viktor Orbรกn

EMBASSY OF THE KINGDOM OF SAUDI ARABIA, DEPOSITPHOTOS.COM, G20.ORG

saudi national day

saudi national day One area that seems to be lagging a bit behind the other ones is trade and investment.

How would you assess the achievements so far in these fields, and where do you think opportunities have opened which should be explored more in depth. We are thinking specifically of Saudi investments in Hungary in such sectors as, for instance, the construction industry, and Hungarian investment opportunities in the ambitious Vision 2030 program in Saudi Arabia, or Hungarian export of water management technology.

to my country in 2001, 2011 and 2014, and the productive meetings with the leaderships of Saudi Arabia at the time. The last official visit of the Saudi Minister of State for Foreign Affairs to Budapest in January 2020 and the discussion with HE Péter Szijjártó Minister of Foreign Affairs and Trade of Hungary represented an additional step in cementing the cordial relations between the two countries.

Mr. Ambassador, it seems that one of the strongest links between Saudi Arabia and Hungary, with one of the greatest potentials as well, is the cooperation in the field of education, science, technology, and culture.

What are the most significant achievements in these areas, and what do you think the two countries should do to take advantage of the potentials not exhausted so far?

First of all, let me here emphasize the importance of the partnership between our two countries. The Saudi-Hungarian Joint Commission plays a key role in advancing all issues of cooperation and mutual interests between the government bodies and institutions including the issues of trade and investment. The Commission held its second round in Riyadh 2016 and is expected to convene its third session in Budapest late this year.

The volume of trade between the two countries has been growing year by year during the last few years. According to the Saudi General Authority for Statistics, the value of trade reached USD 298 million, USD 340 million and USD 355 million for 2017, 2018 and 2019, respectively.

The Saudi investment in Hungary is also promising. There were ten Saudi owned subsidiaries in Hungary and 41 partownership companies that mainly consist of trade-estate. I anticipate that with the conclusion of the agreement for promotion and reciprocal protection of investment, the private sectors in both countries will boost their efforts and more opportunities of joint investment would be realized in the near future between the two counties.

With regard to Hungarian investment in

Saudi Arabia, my country opens all doors for foreign investors including from Hungary.

Saudi Vision 2030, launched by HRH Crown Prince MOHAMMAD BIN SALMAN ALSAUD will provide better opportunities for partnerships in new sectors. These include for example, but not limited to, renewable energy, agriculture, water management, tourism and entertainment and sport.

Saudi Arabia is the only Arab country which is a member of the G20 group. In fact, Riyadh is to host the next G20 summit in November 2020 – the first time that the wealthiest countries in the world are to convene in an Arab country. What will be the 'special flavor' provided by Saudi Arabia to the agenda of the summit besides promoting the meeting's general goals of 'Empowering people,' 'Safeguarding the planet,' and 'Shaping new frontiers?'

As you know, Saudi Arabia is the youngest country in the G20 and one undertaking a huge economic and social transformation for its people. A country with a desire for action and progress and to use our Presidency with openness, humility and pride to Realize Opportunities of the 21st Century for All. This Presidency wants to shape a better world by restoring growth and promoting a strong recovery, sharing the benefits of innovation and technological advances to empower people and protect our planet. The COVID-19 pandemic has accelerated that need and has also demanded a quick reaction to protect the people while we ensure the continuity of businesses.

At the breakout of the COVID-19 pandemic, the Saudi Presidency adapted its original agenda to consider the new realities. We added

several priorities to our baseline agenda or adjusted other priorities to address this global challenge, including the immediate response that started following the G20 extraordinary leaders’ virtual summit chaired by King Salman Bin Abdulaziz AL-SAUD in March 2020.

While the Saudi G20 Presidency is committed to sparing no efforts in the fight against the pandemic, we are equally committed to continuing to work on our baseline agenda, as appropriate, to deal with the long-term challenges facing our world, which addresses systemic challenges that will ensure the world recovers stronger and becomes more resilient.

The G20 has led the fight against this global pandemic, taking swift and unprecedented action to protect lives, livelihoods and the most vulnerable.

The G20 has contributed over USD 21 billion to support health systems and the hunt for a vaccine; made available over USD 14 billion in debt relief for developing nations and injected an unprecedented USD 11 trillion to safeguard the global economy.

Saudi Arabia and Hungary have concluded more than ten agreements or MoU of cooperation in various fields. There are two legal instruments relating to education, science and technology; the MoU for Scientific and Educational Cooperation and the agreement for Scientific and Technological Cooperation.

The Cooperation in areas of education, science, technology, and culture is so practical and fruitful. Hundreds of Saudi students have studied in Hungarian universities, mainly in medical studies. In addition, there is an increasing number of qualified Hungarian professors teaching at Saudi universities. This kind of cooperation is important for building bridges of friendship and for promoting understanding between the people of the two nations.

With regard to the cultural cooperation, I believe that both countries are proud of their deep-rooted culture and rich history. The Saudi Cultural Days that took place in Budapest 2013 contributed to increasing awareness of the Saudi culture among Hungarian people. This year, in 2020, several joint events to commemorate the 25th anniversary of establishing diplomatic relations have either been cancelled or postponed due to the COVID-19 pandemic. One of these cultural events was about Dr. Gyula Germánus, the professor of oriental studies and Hungarian writer, who visited my country and met with the founder of Saudi Arabia, the late King Abdulaziz more than one hundred years ago. I hope by the end of the COVID-19 pandemic, we would be able to organize all pending events. w w w . d t e u r o p e . c o m

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saudi national day the pandemic. Then, on April 16, 2020, Riyadh pledged USD 500 million to various international organizations which were fighting COVID-19 followed by an Extraordinary G20 Leaders’ Summit. The meeting was called into session and chaired by King Salman Bin Abdul-Aziz Al Saud. Both the financial commitment and the Extraordinary G20 Leaders’ Summit testify Saudi Arabia’s determination to lead the fighting against COVID-19 pandemic. Besides fighting the pandemic, climate change is also one of the major concerns of the G20 presidency of Saudi Arabia. By extension, these two problems are related to the need for a more sustainable global economy, as well as a sustainable management of natural resources – the meeting of the G20 environment ministers in Riyadh in September 2020 underlined the importance of the issue.

Another pressing challenge posed, indirectly, by the pandemic was an economic and financial crisis, partly because of the protective measures introduced by the various governments (among others, social distancing), and the closing, or partial closing, of borders, which have disrupted supply chains all over the world. The wealthier countries have been able to weather the drop in GDP, the increase of unemployment and the enhanced health care costs. However, the poorest countries in the world have encountered serious, vital problems. The 73 poorest countries are supposed to pay up to USD 33.7 billion in debt by the end of 2020 – which, under the present conditions, is practically out of question. 42 of them applied for debt relief. The G20 ministers and bankers under the leadership of Saudi Finance Minister Mohammed Al-Jadaam and central bank governor Ahmed Al-Kholifay in July 2020 agreed on considering a possible extension of the debt suspension initiative in the second half of 2020. In reality, it would mean the deferral of the repayment of some USD 5.3 billion by 42 countries in the world.

It is still an open question whether the G20 summit scheduled for November 20-21, 2020 will be held with the physical presence of the invitees or in the virtual place. However, Saudi Arabia’s intention to involve more and more non-G20 countries, especially from the Middle East, Asia and Africa is obvious. Riyadh would like to host the leaders of Egypt, Jordan, the United Arab Emirates, Senegal, Singapore and Vietnam as well (besides Spain and Switzerland). Moreover, a number of non-governmental organizations, so-called Engagement Groups have also been invited from labor organizations through women advocacy groups to representatives of the youth. With a successful summit, Saudi Arabia would be able to enhance its prestige and standing in the world, and it might be its real debut into the 21st century.

King Salman Bin Abdul-Aziz Al Saud opening the Extraordinary G20 Leaders’ Summit

PROMOTING ENHANCED INTERNATIONAL COOPERATION SAUDI ARABIA IN THE G20

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HRH Crown Prince Muhammed Bin Salman pledged his country at the conclusion of the Osaka G20 summit to promoting enhanced international cooperation and coordination. The general goals of the Saudi presidency are as follows: 1) empowering people (especially the youth and women); 2) safeguarding the planet (i.e., protecting global commons in the first place); and 3) shaping new frontiers (i.e., sharing the benefits of innovation and technology). The specifics the agenda of the group were/are supposed to address a wide range of financial, economic and social challenges, including, among others, energy, environment, climate, digital trade, agriculture, and healthcare.

No one foresaw in late 2019 that a COVID-19 pandemic would be forced on the agenda in early 2020. Following UN Secretary General António Guterres’s call on making larger efforts to stop the spread of the coronavirus in mid-March, the G20 ministers under the leadership of Saudi Arabia’s Foreign Minister, Faisal Bin Farhan Al Saud responded to the call. They urged more cooperation among countries to overcome S E P T E M B E R

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UN PHOTO/EVAN SCHNEIDER

influential powers in the broader Middle East, and on account of the King of Saudi Arabia being the Custodian of the Two Holy Mosques of Makkah and Madinah, the country enjoys a primus inter pares status as far as religion is concerned among the Muslim countries.

Saudi Arabia received the privilege to assume the presidency of the G20 on December 1, 2019 for a year as a member of the Troika: preceded by Japan and to be followed by Italy.

If the invitation of Saudi Arabia into the G20 was a recognition of the growing importance of the country of the biggest economy in the Middle East, the decision to give the presidency to Riyadh was in recognition, at least partly, the reform policies stipulated in vision 2030, which was initiated by HRH Prince Mohammed bin Salman bin Abdulaziz, the Crown Prince, Deputy Prime Minister and Minister of Defense in 2016. The reforms included, among others, greater freedom for women, opening the country for tourism and, in general, modernizing some of the institutions and processes which did not really fit into the 21st century.

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The admittance of Saudi Arabia into the G20 has been one of the greatest diplomatic and economic achievements of the Kingdom in recent times.

Saudi Arabia participated in the G20 summit held in Washington, D.C. in 2008 for the first time.

The invitation at that point was not by accident: at the height of the economic and financial crisis sweeping all over the world, Saudi Arabia with its second largest oil reserves in the world (after Venezuela), and its 10th largest sovereign wealth fund, was considered as one of the strongest bastions of world economy. At the same time, the Kingdom belonged in the group of the wealthiest nations globally: in 2018, it ranked as the 40th richest country in the world.

The invitation was also a sort of recognition of the power shifts – or the dispersion of power – in the world. Thus, among others, the Arab world started to play a more prominent role in international life on account of its population growth and growing economic and political clout in the world stage. More specifically, Saudi Arabia had emerged as one of the most

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SHARING OVERLAPPING INTERESTS AND UNDERSTANDING THE 25 YEARS OF HUNGARIAN-SAUDI RELATIONS

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DÁVID HARANGOZÓ, BALÁZS MOHAI/MTI, BARNA BURGER/PRIME MINISTER’S PRESS OFFICE

The conclusion of the Cold War and the collapse of the Soviet Union in the early 1990s opened a number of opportunities for countries under Moscow’s rule.

In the area of diplomatic relations, Budapest was free to develop links with countries, which had been ’forbidden fruits’ on account of ideological reasons and Cold War exigencies. Thus, among others, Hungary had not been able to establish official diplomatic relations with countries, which counted as U.S. allies in various parts of the world, including the Middle East. Saudi Arabia had been a strong American ally in the Middle East since the Second World War and, therefore, Hungarian-Saudi relations were nonexistent during the Cold War years.

Adil ben Ahmed al-Jubeir and Péter Szijjártó, January 2020

Hungary recognized the pivotal role Saudi Arabia was playing in the region; in fact, the Kingdom was – and is – the most important Arab and Muslim country. Its influence reached – and reaches – beyond the region proper; with its huge oil wealth, Riyadh has been playing a crucial role in shaping the world economy, at least as far as energy supply is concerned, and its political clout through the Organization of Petroleum Exporting Countries (OPEC) is beyond dispute as well. The position of Saudi Arabia in the world in general (e.g., as the only Arab member of the G20), and in the region as the hosts of the Cooperation Council for the Arab States of the Gulf (GCC) and the Organization of Islamic Cooperation (OIC) urged Hungary to open towards the Kingdom. The diplomatic relations were established in 1995, and the embassies in Riyadh and Budapest were opened.

In fact, a cooperation of sorts had already been implemented between the two countries during and after the Gulf War in 1991 when both countries were members of the coalition to restore the status quo in Kuwait. In a broader context, Hungary and Saudi Arabia are interested in fighting all forms of terrorism, and the observance of the rule of law in international relations. Fighting terrorism and extremism in general is high on the agenda in both countries.

The third position shared by Riyadh and Budapest is to prevent the proliferation of weapons of mass destruction (WMD), specifically, the emergence of new nuclear countries. The issue is of special importance to Saudi Arabia given its regional rivalry with Iran.

The speaker of the Shura Council, Abdullah ibn Muhammad Al ash-Sheikh with the Speaker of Hungarian Parliament, László Kövér, July 2017 w w w . d t e u r o p e . c o m

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Viktor Orbán and King Salman, March 2014

The regular meetings between senior politicians also indicate the importance both sides attach to bilateral relations. Among them, Prime Minister Viktor Orbán’s three visits to Riyadh should be singled out (2001, 2011, 2014), as well as Foreign Minister János Martonyi’s two visits in 2012 and 2014. Mention should be made of the Hungarian-Arab Economic Forum, which took place in November 2012. The event underlined, as PM Viktor Orbán mentioned in his opening speech, Hungary’s efforts and determination to open economically and politically to the East.

In fact, Hungary have signed a number of trade agreements with Arab countries over the past few years; partly as a result of the contacts made at the Forum. Then, PM Viktor Orbán received the head of the Consultative Assembly (Shura Council), Abdullah ibn Muhammad Al ash-Sheikh in July 2017, while the latest high-level meeting took place in Budapest between Minister Péter Szijjártó and State Secretary Adil ben Ahmed al-Jubeir on January 24, 2020. There is an ongoing dialogue and mutual visits between the legislatures of the two countries as well. Speaker László Kövér paid a visit to Riyadh in 2015, and this was returned by the Saudi Speaker two years later. The continuous exchange of views in constitutional and legislative issues is primarily going on within the framework of the Joint Parliamentary Friendship Committee.

It seems that arguably the most promising area of cooperation between the two countries is education, research, and culture – that is, the socalled soft issues. Two agreements were concluded in these fields over the past 25 years, including a commitment to make the exchange of ideas between the diplomatic academies and foreign affairs institutes of Hungary and Saudi Arabia. One promising area is exporting Hungarian know-how in water management technology. It seems to be a perfect fit: Hungary is a kind of water ’great power’ with extensive experience in this area; moreover, the President of Hungary, János Áder is a well-known champion of environmental protection and the preservation of water supply all over the world.

On the other hand, water is a strategic material in the Middle East, and the future of the countries in the region is likely to be defined to a large extent to their access to water resources. Besides water projects, cooperation in, among others, healthcare or computing and information technology should be singled out.

Saudi Ambassador Mohammed A. Almatrafi and László Kövér, September 2018

Trade is another area which offers opportunities. The current volume of bilateral trade is quite low, the value of Hungarian export of goods to Saudi Arabia is only a bit higher than USD 100 million a year, while Saudi export to Hungary is negligible. The issue was addressed at the meeting of Foreign Minister Péter Szijjártó és State Secretary Adil ben Ahmed al-Jubeir this past January; the Hungarian party offered an USD 600 million credit line at Eximbank to boost trade relations between the two countries. Saudi Arabia, on the other hand, is primarily interested in investment opportunities in Hungary, including catering (the Four Seasons Gresham is owned by the Saudis); the Saudi investors, in general, look for opportunities in the high end of this sector. Likewise, there might open opportunities for Hungarian investors and the construction industry if Saudi Arabia’s Vision 2030 is realized, as it would like to increase the number of tourists 100 million a year, and the necessary infrastructure is not really in place at the moment. There also exists a SaudiHungarian Joint Business Council (established in 2014); it might be a clearinghouse for projects for both parties in case.

Overall, the Hungarian-Saudi relations, which started from scratch 25 years ago, have produced achievements in a number of fields. The relations are facilitated by the fact that the two countries do not have any outstanding political and/or security issues; in fact, they share overlapping interests and understanding in such vexing international challenges as migration and transnational terrorism.

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saudi national day SAUDI ARABIA – AN EMERGING TOURISM DESTINATION

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was the introduction of a new visa regime for a number of countries, including 38 from Europe.

Visas can be acquired electronically, and a reply is received within 24-72 hours. The requirements are quite straightforward and fit into international practice: a passport valid for at least six months after entering Saudi Arabia, and the visa costs USD 80. A tourist visa is valid for 90 days, and visitors can travel freely in the country except for Makkah and Madinah. It is also worth noting that visa can be obtained at the points of entry into the country; that is, at five international airports, as well as the border crossings from the UAE and Bahrain. At the moment, there is no direct flight from Budapest to any of the Saudi airports, but Saudi Arabia can easily be reached via a few European airport hubs. Travel into and within Saudi Arabia is getting easier almost by the day: there are massive and ambitious infrastructure developments in the country, including, among others, expanding the Jeddah airport so that it would be able to handle 30 million visitors a year. These improvements constitute part and parcel of the Vision 2030 program, which envisions, among others, 100 million visitors annually in the country. The expectation is that tourism will generate abound a million new jobs, and will increase the share of tourism in Saudi Arabia’s GDP from 5% to 10%. Vision 2030 has three major pillars: 1) strengthen Saudi Arabia’s status as the heart of the Arab and Islamic world; 2) to become a global investment powerhouse; and 3) to transform Saudi Arabia’s unique strategic location into a hub connecting three continents (Europe, Asia, and Africa).

Saudia Arabia is a perfect mix for visitors with diverse interests. The country has a

2,000-kilometer-long coast along the Red Sea and the Arab Gulf for holiday makers and lovers of the sea. The country is abundant in other natural beauties too, from 9,000-feet-high mountains in the south (the Sarawat) through breathtaking valleys to deserts and dunes. The climate is also varied from the humid western coasts and mountains to arid regions, especially in the center of the Kingdom. The major cities, including the capital, Riyadh (with a population of some five million people) or Jeddah (with a population of some 3.5 million) offer unique opportunities to find fantastic examples of modern architecture along with traditional Arab buildings; bustling streets and alleys offering fine wares of Arab handicraft, and a good introduction to the Arab way of life. Riyadh has leapt up the ranking of the world’s ”smart cities” 18 places to finish 53rd of a total of 109 cities, ahead of such capitals as, for instance, Rome, Paris, Tokyo and Beijing. As for ”smart cities,” NEOM (’new future’) should be singled out. NEOM, being built in the northwest of Saudi Arabia on the Red Sea, is a cross-border city, and is planned to incorporate smart city technologies, and also to function as a tourist attraction. NEOM will include ports and enterprise zones, research centers as well as sports and entertainment venues. The first section of NEOM is planned to be completed by 2025 with an estimated cost of USD 500 billion.

What makes Saudi Arabia a truly unique place in the world is the archeological richness of the country. There are 43 archeological sites and 206 museums to visit by those who would like to explore the country’s history and past achievements. Saudi Arabia is a proud country to have five UNESCO world heritage sites: S E P T E M B E R

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the Al-Hir Archeological Site (Mada’un Salih); the Al-Turaif District in ad-Dir’iyah; Historic Jeddah, the Gate to Makkah; Rock Art in the Hail Region of Saudi-Arabia; and the Al-Ahsa Oasis, an Evolving Cultural Landscape.

The opening of Saudi Arabia to tourists and, and general, to the outside world, also means that the Kingdom is to play host to major international events. The single most significant one, of course, is related to Saudi Arabia’s presidency of G20, with its summit of the leaders of the group in late November 2020. However, Saudi Arabia hosted a large number of meetings with the participation of government officials, experts, academics in various fields as well. As it is well-known, Saudi Arabia is the only Arab member of G20. The country is also the first Arab or, for that matter, first Asian country to host the Dakar Rally for ten years. The first round of the tournament started in Saudi Arabia in January 2020 with a route from Jeddah to Al-Qiddiya. The planned route in 2021 of the rally, which attracts a huge attention all over the world, will be between Jeddah and Ha’il.

Saudi Arabia is a country to be discovered to some extent. Its natural beauties, marvelous landscapes, culture, cultural heritage, architecture, folkways, handicraft, cuisine, and so much more there to be discovered by the world. Saudi Arabia is investing a lot materially and otherwise to steer itself in a position where it can jumpstart its tourism industry after the passing away of the current epidemic, and live up to its potentials in this field for the benefit of people from all the world who are keen to get to know other cultures and to gain new experiences which enrich their lives.

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Stereotypes that defined Saudi Arabia for, perhaps, the great majority of the people in the world included oil, the two Holy Mosques in Makkah and Madinah, the endless sand deserts and dunes, and Bedouin tribesmen trekking across them with their camels. In fact, as in most of the cases, stereotypes are misleading and based on superficial information. It must be acknowledged at the same time that the Saudis did not make too many efforts in the past to change this impression as the country was rather out of reach for foreigners, its society was more closed than open. However, Riyadh has shifted from this position to an opening to the world in more than one sense. On the one hand, Saudi Arabia has stepped up its international engagement along a wide spectrum of areas; the most spectacular one was its admittance into the G20 as the only Arab country in this exclusive club. On the other, major reforms have been implemented within the country in the past few years with the understanding that a one-sided reliance on incomes from selling oil might be unsustainable in the 21st century. Ambitious development projects were initiated from infrastructure through education and science to women empowerment in order to create a modern, vibrant and competitive country in a new economic and security environment. One the key sectors to be developed is tourism, which offers huge opportunities in terms of incomes and, which is as important as the financial side, of dispelling long-cherished misinformation about the country in the world at large.

Arguably the single most important decision in boosting tourism, and opening the country,

DEPOSITPHOTOS.COM

THE KINGDOM OFFERS A LOT TO BE DISCOVERED BY THE WORLD

saudi national day

MADAIN SALEH AND RIYADH, STRONGHOLDS OF THE AWAKENING SAUDI TOURISM INDUSTRY FIRST IMPRESSIONS OF THE KINGDOM AFTER THE WINTER AT TANTORA FESTIVAL For as long as the eye can see, the desert is covered with sandstone mountains breaking into islands, many of them carved out by the Nabateans to house monumental tombs. Indeed, Madain Saleh provides an experience that only the pyramids of Giza or similar monumental memories of thousands of years are able to give to the traveler. Riyadh, on the other hand, is a good place to reflect on your experiences and see the big picture.

BY ÁDÁM ÉVA

We enter the 20th century at the Masmak fort and at the Murabba palace. The perfectly preserved and renovated buildings provide interactive presentations about the age of the state-founder, Abdulaziz bin Abdulrahman Al Saud, and his relationship with world leaders. The interactive exhibitions show you how step by step the anarchy of desert tribes has evolved into a centralized modern state extending across much of the Arabian Peninsula. Of course, the discovery of the country's oil resources also played a significant role in this, and this is not concealed by these exhibitions. As you step out of the museums into the city, construction and modernization can be seen everywhere. By the end of 2020, 6 metro lines are scheduled to be operational in Riyadh, with a total railway network of almost 200 kilometers. This can have a major impact on the city’s air, as it is very difficult to get anywhere in Riyadh without a car at the moment.

Many cities and regions in the country offer cultural experiences similar to Al-Ula and Riyadh. The Red Sea coast offers almost intact diving paradises that provide an alternative for travelers to Egypt. There is so much potential in the tourism sector of the formerly closed Arab kingdom that it is definitely worth visiting the country at least once as a foreigner, and as the current leaders of the country have a precise understanding of the needs of Saudi Arabians who are seeking culture and entertainment, Saudi attractions are getting very popular with locals, too.

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ÁDÁM ÉVA

Salman, the current ruler of Saudi Arabia has entrusted his son, Muhammad bin Salman, with the creation of an international tourist paradise out of a hitherto tourist-closed kingdom. The Crown Prince is a member of a generation that now forms the majority of Saudi society and understands and appreciates the importance of globalization and multiculturalism much more than finding it worth locking themselves in by conservative norms. The modern Saudi people are fed up with the necessity to travel to the West if they want to watch the concerts or their favorite artists or if they want to have

a Western gastronomic experience. This is well recognized by the Crown Prince. At the same time, the leaders of the country also consider it important to show that Saudi Arabia is a culturally and naturally rich and diverse country that is just as worthwhile to travel to as other popular tourist centers in the world.

Madain Saleh, which lies in the northern part of Madinah province, is organically linked to the city of Petra in Jordan, both used to be the centers of the Nabatean Kingdom two thousand years ago. However, while Petra has been one of the most important tourist destinations for decades, the iconic location of Indiana Jones films and UNESCO made it a World Heritage Site in 1985, Madain Saleh

is only beginning to enter the public domain and was granted the same protection as Petra by UNESCO only in 2008. The distance between the two locations is approximately 500 kilometers, which in the future can be easily bridged, either by road or via the modern airport in Al-Ula. At the same time, the Saudi state does not want to show that it is only competing with other Arab countries, but that it should be clearly in the forefront, which is reflected in the quality of services and the attitude of the locals.

Riyadh, the six million capital of Saudi Arabia, is also a hidden gem. Looking at the cityscape, car traffic and dusty air, one has doubts, but a long weekend in the Saudi capital can be spent very meaningfully and after Al-Ula many questions about the country's history are answered when you visit Riyadh’s museums. The National Museum of Saudi Arabia presents the country from a geological point of view and displays the heritage of the country’s historical periods, it is a very rich cultural experience of over four hours.

The museum halls echo all the sites seen in the area of Al-Ula and provide a detailed description that complements the information received from local tour guides there.

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analysis

A TRULY HISTORIC PRESIDENTIAL ELECTION? INCREASING POLARIZED SOCIETY IN NEED OF UNITER PRESIDENT

BY TAMÁS MAGYARICS

The term of ’historic,’ is overused, and has been applied to almost each and every presidential election since, at least, Franklin D. Roosevelt’s victory over Herbert Hoover in 1932. However, this coming election on November 3 does seem to live up to being ’historic’ from several points of view.

In general, what we have seen in the past few years in American political life is increasing polarization – politically, economically, and socially alike. Both major parties have moved towards a more radical position on a number of issues – of course, in opposite directions.

The shift to the left in the Democratic Party was manifest in 2016 with the strong showing of the self-styled Democratic-Socialist Bernie Sanders.

His demands, bordering on demagogy, for a radical new system of redistribution of wealth in the country, coupled with calls for social engineering turned out to be pathbreakers for a new generation of ’progressive’ politicians, most spectacularly represented by the ’Squad’ (Representatives Alexandria Ocasio-Cortez, Ilhan Omar, Ayanna Pressley, and Rashida Tlaib).

Their Green New Deal and other programs, if implemented, which is not likely, would chart a totally new direction in the history of the U.S. – towards a socialist-social democratic model á la Scandinavia, which is alien to American traditions based on a looser labor market, less regulation, heavier reliance of free enterprise, self-help, and entrepreneurship, just to mention some pillars of the American economy and society. Moreover, the Squad’s prominence also marks a potential shift in the political and ideological leadership, and a rise of women of color in key positions of the party both in Congress, and in state and local governments. The Democratic Presidential candidate, Joseph Biden, whose long political career was practically spent in the middle of the political spectrum, has been forced to adopt policies promoted by the left of the party; the big question is whether he would be able to resist the pressure put on him by the progressives if he is elected President. If not, the widening of the gap between the left and the right is likely to grow, further hollowing out the center.

Running against the establishment

The Republican Party has also given up a number of its trademark positions under Donald J. Trump, including, among others, the support of free trade and standing up for such traditional policies as strong cooperation with allies. In fact, Donald Trump ran against the establishment, ‘Washington D.C.’, Republican and Democratic alike in 2016, and he has been at odds with a relatively large group of influential conservatives and/or Republicans ever since from William Kristol through Mitt Romney to Colin Powell. It

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seems that the Republican Party has arrived at a kind of end-station in its abandoning middleof-the road Republicanism as represented, decades ago, by the Rockefeller Republicans, and has adopted a rather populist platform which is intended to attract, first and foremost, a large segment of white voters who are worried about losing their political influence, as well as their social and economic status, partly as a result of globalization and the relative decline of U.S. power in the world. The flip-side of this coin is that the Democratic Party increasingly relies on the support and votes of the African Americans and the Latinos, who constitute a total of some 45% of their supporters. In other words, the widening gap between the Democrats and the Republicans may as well mean a racial divide, too.

The emergence of parallel societies It all adds up to the gradual fading away of a national minimum, the American Creed and the American Dream, which have been shared by the vast majority of the people in the U.S. for some 200 years. Long gone the idea of the U.S. as a ’melting pot’. Instead, what seems to emerge is a number of ‘parallel societies’ (first

used in a different context by Václav Havel). The rejection of the past, especially on the left by such groups and movements as, among others, Project 1619, and antifa, certain elements of Black Lives Matter, is likely to destroy the glue which has kept American society together so far. In reality, the debunking of American history began in the 1980s when, among others, the conservative Allan Bloom and the liberal Arthur M. Schlesinger, Jr. warned about the potentially dire consequences of the attempts to rewrite the history of the country (and the world as well), and to concentrate only on those aspects, which no society could be proud of, including slavery or the discrimination of African Americans for quite some time after the civil war.

worse and could get out under control, in a worst case scenario. On the other hand, it is difficult to expect strong leadership from a President Biden. His only chance to win the election is getting almost full support from the progressives (Hillary Clinton did not get it in 2016) and, therefore, he will be indebted to the left to a large extent. It is a relatively safe bet that the progressives’ expensive programs from the Green New Deal through an expanded public option in health care (even if not a Medicarefor-All) to massive infrastructural investments will not be that popular with large segments of the electorate, including the moderate Democrats. The conclusion of the presidential elections so far, with the possible exception of 2016, always brought about a return to some basic shared principles in the nation. This time, the presidential (and congressional) election in November 2020 may be a real departure from this tradition, and – thus – may turn out to be first truly historic election in the history of the U.S, unfortunately not for the benefit of the country and the world.

In need of a uniter President Given this situation, the U.S. is in need of strong leadership, a strong President who is a uniter, not a divider, at the same time. Unfortunately, the choice is either a strong leader or a kind of uniter, but not a strong uniter. If Donald J. Trump is reelected, the current division along racial, economic, and social lines are likely to be prolonged; in fact, the situation may get S E P T E M B E R

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Polarization

KRIEK LAMBIC CHEERS TO FRESH CHERRIES.

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INTERVIEW WITH KOREAN AMBASSADOR KYOO SIK CHOE

In 1989, Hungary was the first Eastern European country to establish diplomatic relations with the Republic of Korea and therefore, the two countries celebrated the 30th anniversary last year. According to Ambassador Choe, bilateral relations have developed significantly in the political, economic, cultural and consular fields over these three decades. “In the field of economic cooperation, the greatest development is that in 2019, the Republic of Korea overtook Germany as the top source country of foreign direct investments in Hungary. Minister Szijjártó mentioned this as a ‘miracle’ in bilateral relations.

Another indication of the fast growth in economic ties is the fact when you interviewed me for the previous Korea Focus in Diplomacy&Trade two

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years ago, I mentioned that the volume of bilateral trade in 2017 was USD 1.9 billion (according to Korean statistics), while now, I can proudly say that this figure for 2019 was already USD three billion!

While in 2017, there were 90 Korean companies in Hungary, their number in 2020 is 190. I would also like to emphasize the importance of launching a direct flight between the Republic of Korea and Hungary in 2019. This is really good news for both countries!”

The number of Korean nationals in Hungary also increased. In early 2018, there were 1,200 of them but now, there are 3,700 Koreans here. This welcome growth is not only due to the higher number of Korean employees resulting from the increase in investments but also, there are more and more Korean students in Hungary, the Ambassador adds.

AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

HUNGARY

REPUBLIC OF KOREA

93,028 sq km 111 9,919,128 (July 2014 est.)

90 -0.21% (2014 est.)

214 9.26 births/1,000 population 214 75.46 years 93 1.34 migrant(s)/1,000 population 55 $24,300 (2014 est.)

73 7,1% (2014 est.)

77 11,580,000 (2012) 67 41 (2013) 104

99,720 sq km 110 51,835,110 (July 2020 est.)

28 0.39% (2020 est.)

162 8.2 births/1,000 population (2020 est.)

220 82.6 years 15 2.3 migrant(s)/1,000 population (2020 est.

45 USD 39,500 (2017 est.)

46 3.7% (2017 est.)

45 66,355,778 23 111 (2013) 52

Source: World Factbook

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BY SÁNDOR LACZKÓ

DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

KOREAN MIRACLE IN HUNGARY

korean focus Attracting features When talking about the circumstances that led to Republic of Korea becoming the largest source country for foreign investment in Hungary, the Ambassador highlights that “perhaps, the most important of these factors is the geographical location of the country. Hungary not only borders on seven countries but it is also situated along the roads connecting Western Europe with the countries of the Western Balkans and with the Commonwealth of Independent States (CIS) formed after the dissolution of the Soviet Union.

As examples, let me mention Celltrion Healthcare Hungary Kft., which has its headquarters in Hungary responsible for its operations in 16 countries, including those of the CIS and the markets of East Central Europe while the LG Electronics office in Budapest supervises the company’s activities in ten countries of the Western Balkans and East Central Europe.”

Another factor is the investment incentives policy of the Hungarian government. The rate of corporate tax is low, there is a wide range of business incentive programs and some important companies are given VIP status, which allows them to process administrative issues much more simply.

“This business-friendly policy can many times be a decisive factor when finalizing an investment project. All this makes it possible for Korean companies to operate in a safe and stable manner in Hungary,” he points out.

Coping with COVID-19 in business The pandemic situation has caused a lot of problems globally. Ambassador Choe points out that when travel restrictions were introduced in Hungary, Korean companies were given exceptional treatment. As a result, many Korean companies were able to minimize negative effects of the travel restrictions. Later, the Republic of Korea was listed as a ‘green’ country.

“After Hungary lifted travel restrictions for those from the countries of the Schengen zone at the end of June, the Republic of Korea was the first outside this group of countries that was granted similar treatment. The reason must have been that the Hungarian government appreciated the Korean efforts introduced to combat the COVID19 epidemic, while the importance of Korean investments was also a major factor in this decision,” according to the Ambassador.

full recovery. People’s movement and economic activities have not really been restricted, just minimally when absolutely necessary. It was at the end of February that the most cases were registered in the Republic of Korea but even then, no cities or borders were closed – the epidemic was treated quite successfully, the Ambassador highlights.

Nowadays, the pandemic is spreading again at an increasing rate in Seoul and the surrounding counties, but now, Korean authorities have the experience to introduce preventive measures and act proactively to fight the disease. The figures are still favorable in international comparison: the death rate is around 1%.

Cultural ties

point as car manufacturing is being shifted from the production of traditional cars to electric vehicles.

Many Korean companies using this new technology have come to Hungary, which means – with the global automotive supply chain already available in this country – that these new electric vehicles investments will help the Hungarian economy in its transformation to the use and further improvement of new technologies. This can easily make Hungary one of the global centers of electric vehicle production.”

Korean corporate presence in Hungary Basically, all globally important Korean companies are present on the Hungarian market: Samsung Electronics, Samsung SDI, Hankook Tire, SK Innovation, KDB Bank, LG Electronics, Lotte, Doosan and others. Ambassador Choe says that “of course, it is not only them who are here but also a wide circle of Korean suppliers that they cooperate with. Last year, Korean companies accounted for 48% of all foreign direct investments in Hungary, which demonstrates the weight of Korean firms among foreign investors well. This was also appreciated by the Hungarian side that gave Samsung SDI the title of the largest foreign investor of 2019. At the same time, the company creating the most jobs in Hungary was given to SK Innovation.”

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a sign of solidarity with the victims. The necessary permissions are being arranged and if all goes well, the memorial will be inaugurated later this year, I hope” Ambassador Choe says.

He mentions that the court hearing in the case of the boat tragedy, first postponed due to the COVID-19 situation, has now resumed. Accused is the Ukrainian captain of the ship that collided with the Hableány. The second hearing takes place this September. “We trust the Hungarian courts and that these court trials will shed light on the circumstances, those responsible will be made accountable, and, based on the final sentence, the families of the victims will receive just compensation. We hope that the final verdict will heal the wounds of the families of the victims and the victims will finally be able to rest in peace.”

Unfortunately, one of the victims has still not been found. In order to help the search, in January this year, the Korean Embassy in Budapest – on behalf of the victims’ families –published a call in the Hungarian daily newspaper Népszava that those who provide any related information will receive a reward.

On the cultural front, Ambassador Choe is happy to report that last December, the Korean Cultural Center – the biggest one in Europe and the second largest in the world after the one in Japan – was re-opened in Budapest. The same month, a Hungarian cultural center opened in Seoul. “It does not only mean that the Center in the Hungarian capital is large but the interest shown by the Hungarian public in it is also significant – as is the rate of participation by Hungarians in the programs organized by the Center. In Europe, there are 444 Korean culture clubs, and out of these, you can find 131 in Hungary. Since 2007, we have organized the Korean Film Festival (KFF) in Budapest every year and this September, we have the 13th edition of this event. It was at the Korean Film Festival last year where the Hungarian audience could watch the movie ‘Parasite’ that went on to claim four Academy Awards at this year’s Oscars gala.”

As a final thought, the Ambassador remarks that “We are very grateful both to the Hungarian government that announced the creation of a memorial of the sightseeing boat tragedy and also to those Hungarians who helped in the rescue operation and have sent so many hand-written letters of condolence. We very much appreciate this show of solidarity of the Hungarian people. I am sure this will further contribute to the improvement of relations between Koreans and Hungarians in the upcoming 30 years.”

The three T strategy Aftermath of a boat tragedy The sinking into the River Danube in the summer of 2019 of the Hableány tourist boat took the life of 25 Koreans in Budapest. The Korean Embassy works together with the Ministry of Foreign Affairs and Trade and the Budapest Municipality to cherish the memory of the victims of this very unfortunate incident. “As a result of trilateral dialog among these parties, a memorial will be set up to honor the victims. The venue of the memorial has been designated: it will be at the Pest side bridgehead of Margaret Bridge. There is already a temporary place of commemoration there with a lot of candles as

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As in many countries of the world, Hungarian authorities have also taken various measures to combat the COVID-19 pandemic. The number of those infected with the new coronavirus, and that of epidemic-related deaths, is relatively low, compared to many other European countries. As far as the Republic of Korea is concerned, the World Health Organization has spoken about the handling of the situation with words of appreciation.

“Since the start of the epidemic, the Korean government has been pursuing a policy characterized by three Ts: Testing, Tracing and Treatment. It means a lot of testing, a thorough search for contact persons and treatment until

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korean focus Solus and many others are the examples of companies that invested in Hungary with the increasing importance of electric battery production. “With the EU Commission’s 2050 carbon neutral plan and worldwide increase of electric vehicle production, I would say that this industry is the most prominent among the Korean investors in Hungary,” the Director adds.

All these companies and others have made the Republic of Korea the largest source country of foreign direct investments in Hungary.

Favorable business environment He is of the view that the already established and the would-be investors are satisfied overall with the business environment in Hungary. “The government intends to give huge investment incentives and provides full support to the businesses by making a business friendly environment. Regulations regarding business registration is quite convenient and swift, which is one of the major aspects investors consider.

Also, the government has lowered the social contribution tax from 27% to 17.5% since 2017 and is expected to lower a bit further. In terms of visa application, the relevant department has been reinforcing their manpower due to the increasing number of foreign investors entering Hungary. This has benefited the would-be Korean investors, as well.” He adds that some difficulties have also been raised among the investors. Due to the continuing economic prosperity, there has been excess demand of labor with which the supply has not been able to keep up the pace. The recent record breaking low unemployment rate (before the pandemic) has made it hard for investors to recruit in certain areas. Despite the manpower reinforcement in the administration sector, there have been some complaints of lagging permit application procedure, the Director says.

A GATEWAY FOR KOREAN INVESTMENT AND TRADE

KOTRA FACILITATES EASY AND EFFICIENT ENTRY TO THE HUNGARIAN MARKET

The Korea Trade and Investment Promotion Agency (KOTRA) is both a Trade Promotion Organization (TPO) and an Investment Promotion Agency (IPA) representing the Korean government. The organization opened its Budapest office (Korea Business Center) in 1988, at the start of Hungary’s economic (and political) transformation.

Fulfilling mission goals

KOTRA assistance

KOTRA’s main mission is stated in the CEO’s message as ‘Leading the Way for SMEs to Explore Overseas Markets and to Create Global Jobs’. The Director points out that KOTRA has several programs to fulfill these goals. “In terms of trade, we conduct market & buyer research, organize delegation and trade fairs, offer the Jishawha program (for which the KBC acts as a local branch and supports marketing) and other programs, which help Korean SMEs to export.

KOTRA mainly helps Korean SMEs to export to Hungary and also provides basic country information which many clients find hard to search by themselves without paying fees to professional firms. Since the annually updated information by KOTRA regarding the overall business environment is provided free of charge, it is used by many investors, some of whom visit the KOTRA office that offers experienced personnel and a detailed database for basic consulting.

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The thorough cooperation with HIPA and good relationship between two governments enables KOTRA to stand as a reliable agency. “Therefore, I might say that while it is the investors who have chosen Hungary as an adequate investment target for several reasons, KOTRA has played a lubricant role in helping Korean investors easily and efficiently enter and start their business in Hungary,” KeeWon Park points out.

Largest investors Before the times of electric battery production, Samsung Electronics and Hankook Tires were the flagships of Korean investments in this country.

Today, the largest Korean investors in Hungary are Samsung SDI and SK Innovation. These two electric battery production firms decided to aggressively invest in Hungary and produce the batteries now in demand. As this demand keeps growing, these companies have decided to expand their capacity by investing more and production is expected to explode within a few years. Following this trend, suppliers that produce parts to be included in the battery have also aggressively invested and are continuing to invest in Hungary.

Sang-A Frontec, Dongwha Electrolyte, Doosan S E P T E M B E R

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The Budapest KBC offers most of the mentioned programs and has strength in industries such as cosmetics and pharmaceuticals. For the investment, we provide clients information about the overall business environment, including basic taxation, labor law, local regulation and even government related activities like incentives.”

Seminars are also prepared occasionally so that Korean investors obtain new insights and updated news about Hungary. In the process of helping investors, when they have successfully established a business in Hungary and created global jobs, KBC helps them recruit Korean job seekers, mostly from Korea.

KeeWon Park stresses that in fulfilling its mission, KBC/KOTRA cooperates with several Hungarian partners. “Since we are an export promotion agency, we definitely are in need of Hungarian buyers who are interested in the Korean products and willing to use or sell those products in Hungary.

We tend to help both parties by enabling fluent communication between them and eventually making them mutually successful partners.

Secondly, we cooperate with the Hungarian Investment Promotion Agency with which we share client inquiries about investment opportunities, incentive strategies and even M&A related issues.

Also, HIPA has helped many Korean clients during the COVID-19 pandemic when the borders were closed. They enabled essential business personnel visits to Hungary, which has gained huge trust among the Korean investors. Within the investment portion, we should also mention many law and accounting firms that help Korean investors do business easily in Hungary. Many have gained praise among Korean investors for their in-depth and accurate assistance. Finally, we at Budapest KBC thank all Hungarians that have accepted us as a cooperation partner. Even though, most of them might not be directly involved with our office, these people have greeted not only us but all the Korean investors wherever we go and take care of us when we encounter problems. Without the Hungarians warm hearted hospitality, I don’t think we might be able to work as smoothly as we are doing currently.”

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“Because of our early arrival, we have a deep understanding of the country. Hungary has undergone deep political and economic transformation.

Being aware that the government focuses on attracting foreign investment enabled us to promote Hungary as a favorable country to Korean investors early on through several methods. By continuously advertising the merits Hungary possesses, it has encouraged many investors to proactively knock on the door of the Hungarian business market,” the Director of the Korea Business Center (KBC) in Budapest, KeeWon Park tells Diplomacy&Trade.

Hungarian partners

korean focus

WELCOMING KOREAN INVESTORS TO HUNGARY HIPA’S MAIN ROLE IS TO FACILITATE FOREIGN DIRECT INVESTMENTS INTO THE COUNTRY

Last year, the Republic of Korea was the largest source of foreign direct investments in Hungary. The Hungarian Investment Promotion Agency (HIPA) played a pivotal role in many of these investment projects as its CEO, Róbert Ésik explains to Diplomacy&Trade.

He points out that 2019 was another successful year for Hungary in terms of foreign direct investments. “Altogether, agreements were made with 101 companies that committed themselves to investments in the value of EUR 5.35 billion and to the creation of about 13,500 new jobs. What made 2019 a particularly interesting year was that it was the first year in HIPA’s history that Germany did not top the list of foreign investors: approximately 50% of the investment value and one third of all newly created jobs were Korean. There were 11 Korean investment projects in a value of EUR 2.6 billion, creating about 4,400 jobs.”

Future proof industrial segment The HIPA CEO is of the view that the Republic of Korea becoming the largest source country of foreign direct investments is the result of a process that actually began in 2016, the year when Samsung SDI made a decision to bring the production of electric vehicle (EV) batteries to Göd, north of Budapest. “From 2017 onwards, we had an ever increasing share of investment coming from Korea. If we look at the composition of the Korean investments, we can identify that most of these are related to electric mobility.

If you look at the structure of the Hungarian economy, you can see that the automotive sector plays a very important role not only in terms of industrial output and exports, but also in terms of foreign direct investment. Since the automotive industry is a strategic one, it was very important for us to make sure that this industrial segment remains future proof. That is why in 2014, we decided to focus on two megatrends of that industrial sector: electric mobility and autonomous driving.”

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HIPA

HIPA’s role “I remember that it was in 2014 when I had the opportunity to talk in person with Samsung SDI representatives about a potential EV battery investment in Hungary. I believe, that we have been successful first and foremost, because we had a good strategy in place which put these two automotive segments in the forefront. Secondly, which automatically generated interest among other potential investors, we have been able to establish a critical mass in these segments in the past few years. Altogether, 23 major investments have gone into electric mobility related fields in the past 3.5-4 years. The majority of these were Korean companies with some other Asian players w w w . d t e u r o p e . c o m

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like Japanese investors, but we also have a few other ones like Germans or Americans,” Róbert Ésik highlights.

Of course, investors are also checking the local business environment: regulations, taxation and the labor market. “I think we have been successful in presenting a skilled labor pool and a developed infrastructure as well as a competitive tax environment. On top of that, of course, we try to deliver a One Stop Shop management consultancy service to support our clients” he adds.

When considering a long-term commitment, investors would like to ensure that they have a stable environment in the given country from the economic and political perspective as well. The HIPA CEO is of the view that “independent of whether you are investing in manufacturing, software development or any other activity, stability and predictability play a very important role." Also, since 2014, the Hungarian government has been conducting a foreign trade focused foreign policy. "Thus we have a lot of focus foreign direct investments in our day-to-day activities. In fact, it is the role of HIPA as a professional organization to facilitate foreign direct investments into the country.

Taking a Korean example, we have managed to develop a mutually beneficial partnership with SK innovation. We were in discussion with this company from the first day and were in touch with them during the first site selection process."

By now, this company is building its second facility near the town of Komárom. ”We had an active role here but we could not have done this alone, without having fruitful cooperation with KOTRA and the Korean Embassy. We have been trying to make sure is that we deliver tailor-made information packages and provide a tailor-made consultancy services to prospective investors that are looking at Hungary as a potential location of investment.”

Incentives On top of that, there certain incentive tools and offers that make Hungary attractive. Since Hungary is a member of the European Union, it is clear that EU guidelines must be followed and local regulations must also be respected.

The HIPA CEO believes incentives are important but, of course, they carry different weight in the different projects. “In certain cases, they could be the final push before making a positive decision in favor of a given country. So, I think it is worth having a good set of incentives but it is

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also important to be able to use them in a wise manner.” In Hungary, there are three different legal titles to provide financial assistance.

The first one is regional aid. According to EU regulations if an investor decides to invest in an underdeveloped region, underdeveloped by European standards, member states have the possibility to provide regional aid, which can be in the form of cash incentive or tax allowance, and they can be financed from the national budget or they can potentially come from EUfunded programs. “The Hungarian Investment Promotion Agency is the managing body for the state funded VIP cash subsidy system which is a form of regional aid and, among others, Korean investors have been taking advantage of this opportunity. Another legal title and possibility for financial support is one related to the training of new employees. This training subsidy is available for companies that commit to creating a certain number of new jobs and wish to offer training to the new employees. In such cases, the state can cover potentially up to 50% of the training costs, up to EUR 4,000 per person. Last but not least, a few years ago we introduced a third element

of the incentive portfolio where incentives are related to research and development.

The important thing here is that this type of incentive is available throughout Hungary, including the capital city of Budapest. This is a tool that helps us transform the economy and attract more high value-add investments to the country. With this incentive portfolio, we are competitive in the central and eastern European region,” he explains.

Diversification The Hungarian government has three strategic partners that are Korean enterprises: Hankook, KDB Bank and Samsung SDI. From this portfolio it is clear that automotive related activities and electronics or e-mobility plays a very important role.

In terms of medical devices, we have recently been able to conclude an agreement with Samyang to establish a new site in Hungary. We are trying to expand the scope of cooperation beyond automotive and electric mobility, and we are looking at the Korean medical, healthcare and cosmetics industry, which can be an area of future growth.

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korean focus

SAMSUNG EVOLUTION GREEN TECHNOLOGY IS BLOOMING IN HUNGARY

televisions. A few years later, the company announced its new worldwide direction towards green energy and the factory in Göd was closed down. Today, Samsung manufactures rechargeable batteries for the IT industry, automobiles, and energy storage systems (ESS), as well as cutting-edge materials used to produce semiconductors, displays, and solar panels.

The company was established in 1938 by Lee Byung-chul and over the next three decades, the group dealt with food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and – through an incredible journey – became one of the highest global brands today.

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Samsung SDI always provides the latest and best technological solutions for its partners. A major expansion of Samsung SDI's plant in Göd was announced last October. Today, the production and area expansion are taking place at the same time. With an investment of EUR 1.2 billion, 1,200 new jobs will be created and the volume of battery production will increase significantly.

The factory reopened in Göd in 2017 with production focused on rechargeable lithium-ion batteries for the automobile industry. The company was re-established in Göd because the major players of the automotive industry are located in Europe and they prefer the suppliers of key components for vehicle production to be nearby so that these suppliers can immediately react to their requests. Of course, Samsung already had experience with Hungary from the past, thanks to the previous factory, so the company was aware of the qualifications of the workforce here.

Environment-friendly solutions Samsung SDI’s products contribute to the spread of environmentally friendly transport and sustainable mobility.

As a green company, Samsung SDI places great emphasis on protecting the environment for future generations. The company will soon publish its environmental report, detailing the measures and rules that have been taken to minimize the impact on the environment.

Major expansion

New direction In 2002, one affiliate of the Group, Samsung SDI opened a Hungarian branch in Göd, north of Budapest, producing display tubes for

Back in production

The first Samsung shop in 1938

The batteries manufactured in Göd are shipped mainly to Europe and America to the top players of the automotive industry, to be used in hybrid, plug-in hybrid (PHEV) and full-electric (EV) models. As the industry’s creative leader, S E P T E M B E R

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Samsung – such a familiar word for most people – but just a few know what it really means. Samsung in Korean means and symbolizes ‘Be strong and shine brightly forever’.

SAMSUNG SDI

Batteries produced by Samsung SDI

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korean focus PROVIDING A SEAMLESS EXPERIENCE

instance, our premium OLED and LCD TVs not only use AI-powered algorithms for perfect sound and picture quality, but can also serve as hubs for smart homes, and we have washing machines that can detect the weight and material of the fabric that is loaded into them – just to name a few examples. As these innovations evolve and become more widespread, they will provide a seamless experience unlike anything before.

We expect that this trend is going to accelerate as stay-at-home measures all over the world strengthened the need for smarter spaces.”

LG RESPONDS TO MAJOR MARKET TRENDS AND CONSUMER EXPECTATIONS

LG Electronics Hungarian subsidiary acts as a regional center, its office in Budapest not only supervises the company’s activities in Hungary but is also responsible for the coordinated commercial activity of ten other countries in East Central Europe and the Western Balkans.

Popular products When it comes to naming the most popular LG products in Hungary, Hyeong Tae Kim admits that the company’s product portfolio is so diverse that it is difficult for him to choose just a few of the most popular items. “We are pioneers and a leading manufacturer of OLED TVs, which provide image quality unlike any other display technology.

Our monitor range provides premium displays to gamers, creative professionals, office and home office workers alike. Customers strongly appreciate our home appliances that focus on health and hygiene, such as our bottom-freezer refrigerators with NatureFresh technology, steam washing machines, dishwashers and air solutions with air purification. We also find it important to regularly introduce exciting new products in Hungary: we recently launched our first wireless headphone, the LG Tone Free with a special UVnano case that is capable of killing bacteria, the LG VELVET, a smartphone with an extremely unique, stylish design, and we are about to introduce our world-renowned clothing care system, the Styler as well.”

Commitment to sustainability As far as the 'green' elements in production and in serving the clients are concerned, the Managing Director stresses that LG’s commitment to sustainability is strong on a global level. In 2019, the company launched its Zero Carbon 2030 initiative, pledging to achieving net-zero carbon emissions from its global operations by 2030. “We constantly research and introduce energy-efficient, environmentally friendly products, and we also invest in educating our audiences about the sustainable use of technology, such as avoiding food waste with adequate food storage, saving water or being more conscious about energy consumption.”

He adds that like most companies, LG has also faced new challenges during the pandemic, but “thankfully we are adapting and staying strong despite the uncertainty. On the other hand, as people all over the world settle into

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“New technologies and innovative applications allow real value propositions for our B2B customers. Our main areas of solutions include state-of-the-art information displays, such as hotel TVs, cloud and medical monitors, transparent OLED displays and immense LED signage, as well as energy efficient commercial air solutions. LG products can be seen in businesses across Hungary, including office buildings, hotels, event halls, shopping malls, sports stadiums, and even in some hospitals.”

Business solutions

Trends and expectations

LG is synonymous with consumer electronics but the company also offers business solutions. The Managing Director highlights that as technology is continuously changing and exponentially growing, today’s businesses can rely on LG’s business solutions to transform their processes, improve their productivity, agility and energy efficiency.

The Managing Director points out that a major trend on the market in the past few years has been the rising importance of artificial intelligence (AI) solutions and connected smart home ecosystems. “This is an area we are very much invested in. Many of our products already incorporate AI to make our customers’ lives easier and the user experience better: for S E P T E M B E R

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Striving to help Caring for the environment is just one of the elements of LG’s corporate social responsibility policy. The Managing Director refers to the company’s corporate CSR slogan ‘Life’s Good with LG’, which reflects that “we are always striving to help in areas, where our products can make a difference, whether it is donating medical monitors to a hospital, a refrigerator for an organization giving out food for people in need, or smartphones for children with serious illness to stay in touch with their friends and families. We are currently running a global #LGComeHomeChallenge in support of families with inadequate housing or no housing. LG will make a donation to Habitat for Humanity Korea, with plans to donate home appliances to furnish newly built homes. The appliances will be installed in new homes being built in India, Kenya and Vietnam to create safe havens for families in need.”

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LG’s business and the pandemic

new lifestyle habits, enjoying a safer and more convenient at home life style is becoming increasingly important.” These unprecedented times give a fresh perspective on realizing new potentials for the home, accelerating the need for more multifunctional living spaces. Healthy home solutions, good entertainment options and tools for effective home offices are more important than ever in the new normal, and LG is ready to answer these increasing customer needs with its products on the market.

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As LG Electronics Hungary Managing Director, Hyeong Tae Kim explains to Diplomacy&Trade, “LG’s philosophy revolves around people: we are committed to providing products that help customers live better. Through ceaseless innovation, we are offering a wide range of products that enable our customers to lead a better, healthier, more productive life, whether in their home, workplace or leisure time. In order to do this, we manage a diverse product portfolio from our regional office in Budapest from Home Appliances, Air Solutions, Home Entertainment and Mobile Communications to Business Solutions.”

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BRINGING KOREA’S CULTURE TO HUNGARIANS

PROGRAMS AT THE KOREAN CULTURAL CENTER IN BUDAPEST ATTRACT LARGE AUDIENCES

Last fall, coinciding with the 30-year anniversary of diplomatic relations between Hungary and the Republic of Korea, the Korean Cultural Center in the Hungarian capital, the second largest worldwide and the largest in Europe, was officially re-opened at a new location.

Alternative platforms

documentary. In addition to the Korean cinema, the film festival, which this year also focuses on feminism, tries to promote the importance of mask-wearing and blood donation in the current epidemiological crisis, as well. All blood donors at the Hungarian Red Cross Center get a Korean eco-bag and everyone who comes to the festival is given free facemasks.

As is the case everywhere in the world, the COVID-19 pandemic has had its impact on the operation of the Koran Cultural Center, as well.

The Director stresses that they value their visitors’ and employees’ health and safety above all other things. “Therefore, after the lockdown, almost all our programs were cancelled or postponed until the later part of this year and eventually, we closed the center to the public.

For now, we promote Korean culture and arts through alternative platforms such as online or outdoor screenings, online exhibitions and so on. We have premiered 17 performances in a variety of genres from contemporary dance to traditional music since the outbreak within the framework of our project ‘We deliver Korean culture to your home’. We created a 3D exhibition for the Hungarian audience, and we are currently working on a complex online exhibition project, which will not only contain a new exhibition, but it will be an archive of the past exhibitions, too.”

Hoping to open again soon Kim Tae Hoon, the Director of the Korean Overseas Culture and Information Service at the Ministry of Culture, Sports and Tourism of the Republic of Korea said at the opening ceremony of the new Korean Cultural Center last year that the institute “will become more than a space to promote the Korean culture to the Hungarian audience…, it will become the symbolic space of the friendship between Hungary and Korea.” This Center in the Hungarian capital has a goal to be a cultural hub where Hungarian and Korean communities can meet and collaborate.

“Various collaborations have already started with Hungarian partners, even though COVID-19 spoiled many opportunities we could have had in cooperation with Sziget Festival, the Budapest Photo Festival, and others. In the fall of this year, we are going to organize an online group exhibition of Hungarian and Korean artists,” Dangkweon Lee highlights.

Regarding the plans of the cultural center for the coming months, he says that “we sincerely hope to open the Center again soon. Until the end of the COVID-19 period, we will continue to deliver online programs to the Hungarian audience.”

Film festival

When the Korean Cultural Center re-opened in November last year, it also meant continuing work at a new location in the Hungarian capital,

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Activities The new 8,000-sqm facility provides venue for a host of activities like Korean language courses, taekwondo training, K-pop culture, cooking classes, Korean crafts, etc. When it comes to naming the most popular with the Hungarian audience, Dangkweon Lee says these are the Korean language courses of the Sejong Institute and the cooking classes.

Most Hungarians, who love Korean pop culture like K-POP, Korean movie and drama, finally come to learn Korean language to understand them more deeply. And as Korean food is known as a healthy diet with various vegetables and tasty dishes, more and more Hungarians are showing interest in Korean cooking classes. “That is why we will premiere our online cooking class series in September to introduce the four most popular food items in the harvest season,” he points out.

DÁVID HARANGOZÓ

A unique place

in a new, more spacious building. (The original Center in Budapest was opened in 2012.) The Director says that “the new Center focuses on showing various aspects of Korea, from the traditional heritage to the modern scenes of the country. In addition, we provide courses where Hungarian people can learn about, and engage in, Korean culture. The new building has a unique interior design and many visitors say they enjoy it more than our previous place,” he highlights.

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“Hungary is one of the most important countries for the Republic of Korea.

When Korea was trying to seek new diplomatic relationships in Central Europe 30 years ago, Hungary was the first country to accept our call. Today, the largest Korean cultural community in Europe, around 200 people, exists in Hungary. Another point worth mentioning is that it was in Hungary that the Korean drama, ‘Jewel in the Palace’ was aired on television before anywhere else in Europe in 2008, and it was a key element of the Korean Wave on this continent,” the Director of the Korean Cultural Center in Budapest, Dangkweon Lee tells Diplomacy&Trade.

One of the flagship events of the Korean Cultural Center annually is the Korean Film Festival in Budapest. This year, it will be the 13th festival and will feature 22 films. From Dangkweon Lee’s experience, he knows the Hungarian audience likes various aspects of Korean films, therefore, the Center has created diverse sections to meet their expectations. “We focus on helping the Hungarian audience enjoy the past, the present and the future of Korean films. Hungarians can get acquainted with Korean cinematic thinking in many genres from action-comedy through political drama to avant-garde fantasy

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The Power of SELF-LIT PiXELS A Whole New TV Experience Self-lit pixels ensure a whole new level of experience.

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“Source - Omdia. Unit shipments, 2013-2019. Results are not an endorsement of LG Electronics. Any reliance on these results is at the third-party’s own risk.”

korean focus Incheon Smart City grew out of a free economic zone established in the early 2000s. As the Director explained, the IFEZ Smart City is formed by Songdo, Yeongjeong and Cheongna International Cities, which are districts geographically located 20 kilometers away from each other but managed by a single integrated operation center. “IFEZ is a core region that can reach 147 cities around the world with a population of more than one million within three hours of flight, thus being able to react rapidly to the dynamic business markets in Asia. It is only eight kilometers away from downtown Incheon, 50 kilometers from the capital Seoul and highly accessible with Incheon International Airport while Incheon Port within its area is a hub for the government’s strategy of transforming Northeast Asia’s economy. Thanks to its geographical advantages, Songdo is home to more than a hundred global R&D centers, campuses for national and international universities, and multinationals.”

LEVERAGING TECHNOLOGY AND PEOPLE SONGDO TAKES THE CONCEPT OF SMART CITY TO NEXT LEVEL

The Incheon Free Economic Zone (IFEZ), located in Incheon, South Korea comprises hubs for logistics, international business, leisure and tourism for the Northeast Asian region. Diplomacy&Trade asked the Director of the IFEZ Smart-City City Integrated Operation Center, Lee Sangho what they have achieved, to date in all these areas.

Foreign interest This successful smart city concept has generated a lot of interest internationally. The Director proudly pointed out that among the smart solutions of IFEZ Smart City, its licensed integrated platform used for urban management and operation accumulated KRW 550 million in sales as of March 2020. IFEZ has sold its licenses to 11 local governments in Korea, whereas overseas accomplishments have reached Peru, the Philippines, Vietnam, Colombia, India and Malaysia so far. ???The IFEZ Smart City Integrated Operation Center is visited by many

environmental issues. In general, sustainability is very much taken into account when creating smart solutions. According to the Director, “sustainability is one of our major priorities and becoming a sustainable smart city can be considered our ultimate goal as it is one of the most important elements to change the world positively. Songdo itself was designed to reduce its environmental footprints and to try to achieve energy independence with its smart buildings using low U value (that is, high energy efficiency) windows and LED lights, water-cooled air conditioning system and solar energy resulting in a reduction of energy consumption by 30%. While great emphasis is placed in such smart solutions and most of the smart city projects in Korea try to provide a smart environment to solve urban problems prioritizing services related to the improvement of the life quality of citizens through government-led approaches, it is now time to consider creating an ecosystem to develop cities more sustainably.”

The IFEZ Smart City project is currently trying to identify the need for – and add services in – the private sector to create new businesses based on the existing smart environment. A sustainable urban model is expected to be created through this ecosystem with enhanced services based on the cooperation between the public and private sectors and also by driving innovation and transformation in various areas of the society, Lee Sangho concluded.

government officials especially interested in its unique PPP (public-private partnership) model with a company specialized in smart cities.

Improving comfort and safety Hailed as a cutting-edge, ‘smart city’, Songdo IBD (International Business District) – with its smart urbanism’ – is considered by its promoters to be the most ambitious master-planned project.

“Songdo is the first to be taking the concept of smart city to the next level: the entirety of its infrastructure is designed to improve the comfort and safety of its residents, all the while limiting their ecological impact through ongoing data analysis. The thousands of sensors installed in the streets of Songdo analyze traffic to detect and prevent any risk of jams by updating drivers’ GPS in real time,” Lee Sangho said. And that is not all. Songdo was built like a living organism testing the infrastructures to the ongoing analysis of all data collected from human activities. Then, its central computers exploit this information to optimize various public services: water and electricity services, public transport, municipal administration, etc. All buildings are directly connected via a vacuum system to a recycling plant that produces and distributes heat to offices and homes.

Consumption is tracked as closely as possible to maintain a neutral city-wide carbon footprint.

Green Climate Fund Songdo is also home to the Green Climate Fund, an international organization addressing

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The vision of Incheon City is to create a livable and citizen-centered smart city. Lee Sangho stressed that “here at IFEZ Smart City, we try to leverage technology and people to achieve environmental, social and economic sustainability. The public services being provided by IFEZ Smart City emphasize public security and wellbeing with interactive procedures and real-time information provision ensuring every citizen access to updated information related to areas such as the environment, traffic, safety, parking spaces, etc.” He added that effective time management is possible, based on the information provided, resulting in an improvement of life quality. IFEZ Smart City is constantly considering methods to enable citizens to be more engaged in the shaping and creation of services available in the area. “For instance, as from this year, IFEZ is launching the Incheon Startup Park to create an ecosystem for startup entrepreneurs, investors, universities, research institutions, etc. enabling interactive collaboration in an open space. Such players will be able to use the site as a testbed for their new service ideas based on IFEZ’s IoT (Internet of Things) test network, Big Data forecast and analysis systems and cutting-edge smart technology. As an incubator for global startup enterprises, IFEZ is expected to get one step closer to its vision of becoming a livable and citizen-centered smart city based on its values of innovation and openness.”

SMART CITY

Multifaceted sustainability

korean focus

Corporate banking KDBE is well known as a corporate banking specialized institution. The President&CEO highlights that KDB is very proud of being the most competitive when it comes to corporate banking and investment banking in Korea.

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KDB BANK EUROPE LTD. SUPPORTIVE OF ITS CUSTOMERS’ OBJECTIVES

“Based on the mother company’s specialties, KDBE offers a variety of financial products such as corporate financing, FX, financial derivatives, etc. to Korean companies launching their businesses in central-eastern Europe. From the customer’s viewpoint, KDBE is very supportive of the objectives they wish to achieve.”

The impact of the epidemic The current pandemic has hit almost all sectors of the economy heavily. Min In Hwan points out that the COVID-19 epidemic has brought a fundamental paradigm shift in both the global economy and financial environment.

Hungary is also heavily influenced by the COVID-19 pandemic as the proportion of the automotive industry and tourism is high in its economy. “Despite the financial market volatility, e.g. exchange rate, interest rate, many companies are exposed to the risk. To

ready to provide the variety of financial products that clients need. Please, feel free to knock on the door of KDBE at any time!”

support customers with such difficulties, KDB Bank Europe Ltd. has been active in its role as a policy finance institution. Recently, the Hungarian government has started providing support for firms related to exports and tourism, and KDBE has been taking part in this government support program for Hungarybased companies. Responding to the recent trends of conducting business online, we have been upgrading our IT system,” he says.

For long-term relationships For KDBE – and its customers – it means a lot that the Korean Development Bank is behind the financial institution. As Min In Hwan stresses, KDB has been the backbone of the development of the economy and the financial industry in Korea. “As a policy finance institution, KDB places emphasis on long-term relationships as a priority rather than seeking short-term profits. It is highly expected that there will be a lot of areas where KDBE can support in the centraleastern European corporate business markets. KDBE will do its best to play an important role as a faithful business partner,” the President&CEO concludes.

Come to KDBE! KDB Bank Europe Ltd. offers premium products, like FX hedge tools and treasury services, to its clients. The President&CEO reminds that the Korea Development Bank is the No.1 derivative house in Korea. “I also worked as a broker in dealing rooms for more than twenty years, and KDBE has a number of highly qualified Korean staff members S E P T E M B E R

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SZILI

Explaining how many of the bank’s original objectives have been achieved, he stresses that “30 years have passed but KDB Bank Europe Ltd. still has a lot of things to do. In 2019, South Korea became the largest foreign investing country in Hungary, and a lot of Korean manufacturers expanded their businesses to central-eastern Europe, including Hungary.

As Korea’s leading policy finance institution, the Korea Development Bank – and KDB Bank Europe Ltd. – has provided financial services to companies based in this region of Europe.

KDBE, THE FAITHFUL BUSINESS PARTNER

photo by LÁSZLÓ

KDB Bank Europe Ltd. (KDBE), a subsidiary of the South Korean Korea Development Bank, has been present on the Hungarian financial market since 1990. KDBE President&CEO, Min In Hwan tells Diplomacy&Trade how the bank developed over these three decades and the services it offers its clients today.

WE TAKE ON THE CHALLENGE OF THE 21st CENTURY ELECTRIC MOBILITY REVOLUTION BY SUPPLYING TO THE WORLD’S LEADING ELECTRIC CAR BATTERY MANUFACTURERS.

LOTTE WORLD TOWER (123 FLOORS, 555 M), THE HEADQUARTERS OF LOTTE GROUP IN SEOUL

korean focus “The EU is strategically pursuing an eco-friendly policy and thus, the number of electric vehicles is expected to grow significantly. We decided to make an investment in Hungary because this country has a particularly good infrastructure for the electric vehicle ecosystem with high level human resources and also has a geographical advantage as it is located in the center of Europe.

In addition, our major customers are already operating in Hungary and expanding their business continuously. Through this investment, we can provide higher level customer service, which includes quick delivery and we get a chance to follow the most current technology trends in the electric vehicle sector,” the Managing Director of Lotte Aluminium Hungary Kft., Sang Gab Park tells Diplomacy&Trade.

He adds that as the Hungarian government has an active investment promotion policy for foreign companies, Lotte Aluminium Hungary will set up the world’s best aluminum plant for supplying secondary battery production, receiving versatile support (regarding plant location, administrative procedures, etc.) from the Hungarian Investment Promotion Agency (HIPA).

SUPPLYING THE REGION

LOTTE ALUMINIUM BUILDS THE WORLD’S FIRST SPECIALIZED PLANT FOR ALUMINUM BATTERY FOILS IN HUNGARY

It was announced in February this year that Lotte Aluminium will soon produce aluminum anode foils for batteries near Tatabánya, west of Budapest. The company will serve enterprises that manufacture batteries for electric vehicles, and plans to supply them with some 18,000 tons of foil annually.

Factory implementation under way Lotte Aluminium purchased about 60,000 sqm land in the Tatabánya industrial park last May and started the civil and construction work consecutively in early June. “Now, we are in a final stage of building with the wall – roof work as well as the automatic warehouse are to follow. In the meantime, we have already placed an order for the main production machines with a German company and these are scheduled to arrive Hungary later this year.

Due to the COVID-19 pandemic, we are three months behind the master schedule but we are trying our best to catch up. We hope to start the machine installation from early March next year and start production in the middle of 2021,” the Managing Director explains.

Doing it the Hungarian way He points out that when they planned the project, they had in mind hiring 85 employees before 2025 but they have now adjusted their employment plan to over one hundred people.

“That is because we changed our initial shift plan after discussion with our Hungarian employees.

We expect that it will give better productivity and better employee satisfaction,” he says.

The company is still adjusting its HR plan to Hungarian circumstances in many ways.

“We are not going to stick to the Korean company way. We think collaboration will be better. Also, we are investing in developing

our employee skills. As you may know, our plant is the first aluminum foil plant in Hungary. Therefore, we are about to send our employees to Korea for training despite the pandemic situation. It will be a good opportunity for our employees. We believe that Hungarians have a good sense of learning and having much curiosity about new things, as history has proven.

So, we expect our employees to show good performance. Next year, the start of the installation of machines will be the first big challenge for us and commercial production will follow. In those challenges, we assume we will meet many hurdles, especially in practical issues and we expect our employees to show their potential talent in solving the problems together with Korean engineers,” Sang Gab Park points out.

LOTTE ALUMINIUM

Lotte Aluminium is Korea’s biggest comprehensive packaging material company founded in 1966. It has six plants in Korea and one in Indonesia. Having a long history in packaging materials, Lotte Aluminium has a diverse product portfolio including aluminum foils, printed packaging materials, corrugated cardboard boxes as well as CAN, PET bottles. Among these, the aluminum foil business division has been supplying various kinds of aluminum foil products such as pharmaceutical packaging materials, electric and electronic industrial materials with the best technology that has been accumulated over 50 years. The company’s plant in Hungary will produce anode aluminum foils only and will be the world’s first specialized plant for aluminum battery foils.

Secondary battery elements

and released by the manufacturing execution system (MES). The thickness and flat shape that determine the quality of the product are automatically managed by the measurement system and minimizing operator intervention.

By incorporating IoT technology, it will detect abnormalities in the facilities and automatically inform maintenance personnel what to check, thereby reducing the labor of maintenance people. In addition, all production data is provided to Korean engineers through a cloud system in real time, and this enables effective collaboration over the geographical locations.

Lotte Hungary’s plant is to produce the major elements of secondary battery, which are cathode, anode, separator and electrolyte.

Among them, the anode is made with coated activating material on the aluminum foil. This aluminum foil acts to collect the current inside a battery. Lotte Hungary will make this anode foil for the current collector. This requires high electrical conductivity and high aluminum purity as well as low mechanical defect such as pinholes and tight thickness tolerance. The typical final product thickness is 0.012 mm. Most of the product will be supplied to the secondary battery manufacturers such as Samsung SDI in Hungary and others in the European Union.

Industry 4.0

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LOTTE ALUMINIUM

The procedures in the plant will respect Industry 4.0 standards. It means that all sensor data is stored in the database, monitored for realtime process management and used as basic data for the next process. Raw materials and work-in-progress materials are stored in an automatic warehouse at the center of the factory and can be automatically received

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korean focus CLOSE TO THE CUSTOMERS

DONGWHA PLANT IN HUNGARY TO SAVE RESOURCES, PROTECT THE ENVIRONMENT AND SECURE COST COMPETITIVENESS

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DONGWHA ELECTROLYTE

A leading electrolyte supplier for major battery makers of South Korea, Dongwha Electrolyte is planning a business expansion in Hungary.

Dongwha Electrolyte is the first South Korean company to domestically produce electrolyte products for Lithium-ion batteries and is currently operating production facilities in Korea, China, and Malaysia.

Due to EU legislation setting mandatory emission reduction targets for new passenger cars and light commercial vehicles, a rapid market shift to eco-friendly vehicles such as xEV (Hybrid and Electric Vehicles) seems inevitable. As a result, major xEV battery makers are establishing production facilities in Europe in order to occupy the regional market in time. It is predicted that the global Lithium-ion battery market will grow from the current USD 25 billion to USD 100 billion by 2025 based on increasing demand.

“These are the reasons we have prepared for the European market since 2018, and we established a corporation in Hungary in 2019,” the Managing Director of Dongwha Electrolyte Hungary, Ma Sung Nam tells Diplomacy&Trade.

He adds that geographical accessibility is very important for manufacturing efficiency of electrolyte, and also that Samsung SDI and SK Innovation plants are located in Hungary. When Dongwha Electrolyte plant’s construction is completed in Sóskút, northwest of Budapest, w w w . d t e u r o p e . c o m

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near those battery companies, seamless material supply to manufacturers of finished secondary battery will be possible.

Under construction Construction work on Dongwha Electrolyte’s secondary battery electrolyte production plant is to start in October this year, and the company is aiming for a pilot production in May 2021. When the construction is completed, it is expected to produce 20,000 tons of high-quality products annually.

The NMP (N-methyl pyrrolidone) refinery, which begins construction in December this year, is scheduled to begin operating in June next year. With the NMP refining business, the first of its kind in Hungary, Dongwha will save resources, protect the environment and secure cost competitiveness through recycling waste NMP generated during the secondary battery manufacturing process. The Managing Director says the plant will need a total of 90 employees, “and what we expect is a sincere attitude, professional skills and good relationship with our colleagues.”

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Electrolyte and NMP Lithium-ion battery electrolyte contains Lithium salts, high-performance additives, and low viscosity organic solvents. Major functional requirements of quality electrolyte are high Li-ion conductivity, wide range of operation temperature, and large window of electrochemical stability. The electrolyte is one of the four key materials of the Li-ion battery (LiB), and yet there is no electrolyte manufacturer for large-sized LiB operating in Europe. Close geographical proximity among production facilities of each component is required for manufacturing efficiency.

NMP is a type of organic solvent, which has a high boiling point (about 200 degrees Celsius) and is chemically stable with the ability to dissolve various substances. Therefore, it is widely used as a common solvent in petro-chemical, plastic and pharmaceutical industries.

NMP is also used in electrode materials manufacturing when applying active materials, drying and rolling the electrode as a solvent for lithium compound and polyvinylidene fluoride.

After manufacturing electrode materials with NMP, the used NMP is recycled for cost efficiency purpose, as well as to protect environment by reducing waste.

Electrolyte, they make sure that the manufacturing of battery components does not mean a burden for the environment.

As for electrolyte, it is a simple mixing process of materials, therefore, waste is not generated in the manufacturing process. The NMP refinery will receive used NMP solvent from battery cell manufacturers and refine the used NMP into highly pure NMP to supply back to battery cell manufacturer. The used NMP recycling business is an eco-friendly system, saving resources and protecting the environment, Managing Director Ma Sung Nam concludes.

Eco-friendly system The use of electric batteries is environmentally friendly. At Dongwha

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korean focus

‘URBAN MINING’ IN SZIGETSZENTMIKLÓS

for the environment not just because it allows for less mining but also because the scrap materials are utilized instead of just being dumped in a depot. Of course, the environment is also taken into consideration during the extraction process. The technology used here has already been tested in Korea and is further developed continuously and the environmental regulations are adhered to.

The dust produced during the granulation process is removed by extraction equipment into a storage tank located outside the building. The air at the plant is continuously monitored and the results are reported to the environmental authorities.

The rate of emission at the chimneys is zero. The scrap recycling capacity of the Szigetszentmiklós plant is 7,000 tons per year, which means the ‘urban mining’ of approximately 2,000 tons of cobalt and nickel.

SUNGEEL LEADS THE WAY IN ECO-FRIENDLY RECYCLING OF LITHIUM-ION BATTERIES

Precious materials from battery scraps Facing a global shortage of mined metals, SungEel engages in ‘urban mining’ to recover cobalt, nickel, manganese, lithium, copper and other scarce metals from scrap batteries and metal scraps. SungEel Hitech Hungary takes part in this process by receiving and handling materials – including anode/ cathode (electrode/coil), cell, module – from Li-ion battery (LIB) production. This waste management/recovery activity is supplemented by the on-site collection and trade of 240 tons of packaging materials

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(paper, plastic, wood (pallets) per year.

As the management of the Szigetszentmiklós plant explains to Diplomacy&Trade, the side products of lithium-ion battery production received from the Samsung SDI battery factory in Göd, north of Budapest, are anode (copper foil with carbon coating), cathode (aluminum foil with nickel-manganic-cobalt coating) and the jelly roll, which includes these two separated with membrane.

In addition to cobalt and nickel, the decomposition process by SungEel Hitech Hungary produces aluminum and copper chips as well as nickel, manganic and cobalt powder, etc., which can be utilized by metal traders. The incoming material is recycled 95-98%, in some cases 100%.

Back to the batteries The nickel and cobalt gained by SungEel Hitech Hungary from the incoming waste of battery production is exported to the mother

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As part of SungEel Hitech’s first European investment, the 8,200sqm plant, built with an investment of EUR 5 million, employs 50 people.

SungEel Hitech Hungary Ltd., founded in 2017, processes waste products of battery manufacturing in an environmentally friendly way, with world-class technology.

company in Korea where these are further processed in a chemical plant that produces basic materials for battery factories. Longterm plans include the setting-up of such a chemical plant in Hungary, too, to save these materials (Nickel Manganese and Cobalt) from having to be shipped to the other end of the world and then perhaps back to the battery factory in this region.

The whole procedure taking place at the Szigetszentmiklós plant is very beneficial

DÁVID HARANGOZÓ

SungEel Hitech Co. Ltd. of South Korea has grown into one of the world's leading secondary battery recycling companies since its founding in March 2000 with the philosophy of “finite resources as infinite resources to preserve the green environment.” The plant of its Hungarian subsidiary was inaugurated in March 2019 in Szigetszentmiklós, just south of Budapest.

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witty leaks WITTY

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

LE A K S

A NEWCOMER TO BUDAPEST – NOT ANYMORE HUNGARY AND PERU ARE CLOSER THAN GEOGRAPHICAL DISTANCE MIGHT SUGGEST

BY THE AMBASSADOR OF PERÚ, RAÚL ALFREDO SALAZAR COSIO

When a diplomat arrives in the country where he or she will start a tenure, it is natural to review the image that his or her country evokes. This external perception, forged by history, culture and geography, will undoubtedly influence the plan they have to strengthen the relations with the host country.

In my case, the first question was: are there any complementary characteristics among our countries that could grant us a mutual attraction, at first sight? I could not ask my predecessors, because the last Peruvian Chief of Mission left Budapest in 2006, and we were the first group since then, reopening the embassy in the middle of 2018. Yes, we do have archives, but I have always found direct, personal anecdotes from others more insightful.

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EMBASSY OF PERU, BUDAPEST

Finding common ground I was also conscious that whenever there is a significant physical distance among the protagonists, in this case Peru and Hungary, an ambassador´s plan would have to give precedence to finding common ground on trade, economic or cultural issues, while also including global or regional commonalities that are usually identified at multilateral forums and organizations.

My formal and pleasant meeting with President János Áder was very encouraging as it revealed his deep knowledge of the problematic nature of climate change and extreme weather events. Peru is one of the most vulnerable countries of the world to its effects and President Áder expressed his solidarity on what we had experienced months before, a country overpowered by the effects of an intense El Niño phenomenon. His activism and concern were very much appreciated.

And then, I considered our traditional strengths.

What about the beauties and riches that have attracted foreigners? Peru is a mining country, the second in the world for its exports of silver, copper and zinc, and among the top six global exporters of gold and lead. The myth of ‘El Dorado’ was based on factual abundance in the area and for a good reason. Also worth highlighting alongside these natural resources are our fisheries, by some metrics number one in the world, largely due to the anchovy and the prime fish meal we produce.

The next question was, are these ‘traditional’ exports going to be of interest to Hungary?

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to heavily industrialised economies, so it looked that this was not the case. But the latter could be of interest to a country with an important animal growing sector.

What about the meat of Mangalica pigs that receive one of the best animal feeds of the world from Peru? My business people would have to come and visit their counterparts. Persuading them with hard facts and coordinating the right appointments would have to be my task.

But, what about non-traditional exports?

Peru has regained its place as an agricultural powerhouse, a position we had during the Inca Empire. The Andean Mountains, the so-called vertebral spine of the original Peru and the dramatic scenario where the Incan civilization unfolded, was also the location of one of the most advanced agricultural societies of its time.

Physical connectivity, impressive construction and a remarkable system of irrigation and crop domestication were the response to the challenges posed by the rough terrain.

As a result of the Spanish conquest, native Peruvian crops, among others the potato and the quinoa, began to feed the so-called Old

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World. And we are back at it again, with a boom of the coastal agriculture that includes some of the plants and fruits brought by the Spaniards, like grapes and blueberries. Nowadays, they are added to the mix produced in a region with minimal rainfall, but with enormous productivity thanks to the permanent sunlight and an improved and advanced irrigation system.

A new “El Dorado” of healthy and nutritious food is already launched. With avocados, asparagus, blueberries and grapes at the front lines of the European food markets, complemented with great fish and its relative the ‘ceviche’, a classic dish in our distinguished gastronomy and a contemporary example of our Mestizo culture.

Presenting cultural ties I found another complementarity. Budapest is a trendy city for tourism, with cosmopolitan and refined restaurants ready to cater its visitors. So we drew and painted messages and photos about the riches of Peru and attached them for one month to the No. 2 tram, the vintage and beautiful carrier that transports both citizens and bands of tourists

alike across Budapest´s main monumental areas, mainly along the river Danube.

But it is not only about what we can offer, it is also what we can expect from talented Hungarians. I look forward to my Embassy’s imminent subscription of the Stipendium Hungaricum program. The exchange of scholarships that this agreement will allow our students to get closer to a culture that shines in arts and science. I dream of Peruvian musicians acquiring their skills at the Franz Liszt Academy.

Our great tenor, Juan Diego Flores is an example of a gifted artist fine-tuned by his European experience and who is supporting Peruvian young musicians of less means to improve their opportunities in the lyrical scene. How proud I was to be watching him here last year when he delighted and charmed the demanding Budapest audience, which sang along with me to some Peruvian songs towards the end of the performance.

Finally, I should have dove into the old archives sooner. Because it took me some time to discover the contribution that one Hungarian engineer made to our coastal agricultural boom. András Lakatos from the Szent István University of Gödöllő, or ‘Mr. Wine’ to his friends and admirers. The Hungarians seem to be all over the world doing their thing, in other words, spreading their talent.

He carried out a semester of research in 2004 at the University of Piura – the public academic center of a semi-arid region of Peru, well known for its important production of Pima cotton – sponsored by the institutional cooperation agreement signed with its Gödöllő counterpart.

At its completion, he delivered his technical proposal to the local Chamber of Commerce that had also partially financed the study. Its recommendations have transformed Piura into the second most productive region of Peru for the Red Globe grape in just a decade. Now, Peru is the second exporting country in the world of grapes, mainly of the Red Globe variety.

I must also recognize the creativity of my predecessor, Ambassador Guillermo Russo, for finding his way to promote said academic cooperation agreement that had so much impact on Piura´s development. Consequently, I must stress the permanent debt that Peru owes to ‘Mr. Wine’, who is not with us anymore, and to his Alma Mater. Now, my task is to prepare this recognition in public and to launch my imagination a bit more, conscious that there are so many ways not shown in books that allow us to strengthen the ties among two countries like Hungary and Peru.

What about the field of sports and diplomacy?

I do recall that two great Hungarian football coaches trained our national team: György Horth during the 1950s, and Lajos Baróti decades later. Mr. Baróti brought up a new generation of footballers that shined at the Mexico World Cup of 1970. Long live football, a sport that has allowed important contributions from its Hungarian athletes globally, but also to my country specifically.

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business

DOOMED TO GROW: TÜV RHEINLAND MOVES TO NEW SITE HUNGARIAN SUBSIDIARY EARNED THE RECOGNITION OF THE PARENT COMPANY The Hungarian subsidiary of the Germany-based group has outgrown its current location and is moving to a modern, self-designed location in the Gizella Loft office building, next to Siemens Co. Ltd. Searching the Internet for the Budapest address of TÜV Rheinland Intercert Ltd., the company engaged in technical testing, inspection, supervision and certification, will find two different addresses: ‘still’ on Váci út and ‘already’ – a few kilometers away – on Gizella Street.

“Our company is constantly evolving and its development can no longer continue in this old building. Thanks to our continuous development, we are already the fifth largest company of the TÜV Rheinland group in Europe, we employ more than a hundred highly qualified engineers, so we decided on a large investment, which is also supported by the German headquarters. We looked at 18 possible locations and finally decided to lease 6,000 square meters of space in the Gizella Loft long term,” Managing Director Miklós Novák tells Diplomacy&Trade,

Central lab According to the adopted strategy, the Budapest company will also establish and operate a central testing laboratory, in which it will be possible to test materials and equipment sent from all over the world. Business field manager Gábor Kovács emphasizes that the full scope of activities of the TÜV Rheinland group of companies (product certification, product conformity, CE marking, inspection, inspection of industrial facilities, certification of quality management systems, training, etc.) is available at the Hungarian subsidiary. Planning for the move, which is taking about three months and ends in September, began

available in Hungary and the best in the region.

The new investment is due to the fact that Hungarian professionals continuously achieve above-average results. Of the 6,000 square meters, 5,000 will be testing laboratories, primarily supporting the access of domestic industrial production to the world market.” Gábor Kovács adds that "TÜV Rheinland sticks to the philosophy of carrying out measurements and tests with its own laboratory capacity, and has a reliable infrastructure that can be flexibly adapted to its needs."

According to Miklós Novák, “this company is doomed to development. In my opinion, this is a very valuable and interesting job: new things have to be explored here every day, often foreign colleagues come here, or we work in other countries. We are talking about an intensive and attractive work environment and all this will be even truer under the new, 21st century conditions."

over two years ago. "Concluding the contracts was also a big challenge because there are not many companies in Europe that have previously designed and built such a laboratory structure," he notes.

Tailor-made design Gergely Hidas, Business Stream Coordinator for Product Testing and Certification, is pleased that they were able to start from scratch when designing the new laboratories. “It’s a leap in quality; this way, we were able to include the latest technologies. A good example of this is the electromagnetic (EMC) measuring point, which is the largest and the newest one commercially

EYES, BODYGUARD, REFERENCE

Many say about TÜV Rheinland: “They are the ‘eyes’ of companies because they ensure that suppliers deliver what was agreed on, in the quality expected; they are the ‘bodyguard’ of people: they provide security because the device they have tested will not electrocute them, the chair they buy will not fall apart, etc.; the company that tests its product with them and can use the TÜV Rheinland logo will receive a reference that will improve sales.”

CENTRAL BANK TO SUPPORT GREEN FINANCES GREEN BONDS COULD BE FLAGSHIP INSTRUMENTSOF THE PARENT COMPANY

By implementing its Green Program, the National Bank of Hungary (MNB) wishes to contribute to reducing risks related to climate change and other environmental issues and to raising the volume of green market financing in Hungary.

Under the Green Program, the MNB is constantly searching for possibilities to improve the conditions of green investment funding. Consequently, in addition to the measures concerning lending already taken and in progress in the banking

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and energy strategy objectives, and it can support the turnaround in competitiveness strongly promoted by the MNB. S E P T E M B E R

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DÁVID HARANGOZÓ, DEPOSITPHOTOS.COM

Environment and competitiveness

sector, the MNB will also start to support the introduction of green finances in the capital market in co-operation with other authorities and market participants.

In this attempt, green bonds could be flagship instruments, as their segment has shown impressive growth over the past few years in foreign advanced markets. However, with some exceptions, green bonds are still at an early stage in Hungary – and in Central and Eastern Europe in general. An exception is the recent issuance of Hungarian Green Government Securities. The start of green bond issuances in Hungary may contribute to the financing of the country’s climate, sustainability

Nevertheless, the issuance of green bonds by companies, banks and possibly local governments is unlikely to proceed to the desired extent at the start without incentives and supporting actions by the Bank and other regulators. Similarly to other countries, Hungary may also be required to introduce developing and facilitating measures. Green market development will become a key topic in designing Hungary’s Sustainable Capital Market Strategy at the International Conference on Green Finance held by the MNB on October 21, where the CEO of Climate Bonds Initiative is also scheduled to give a lecture. This issue will also be discussed at a training on investor relations managers related to sustainability offered jointly by the Budapest Institute of Banking, enjoying the professional support by the MNB and the London Stock Exchange Group Academy in October 2020.

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Following the measures already taken in the banking sector, the MNB says it will start introducing green finances into the capital market.

This involves the publication of an analysis of the Bank’s regulatory measures to promote green bond issuance.

Incentives

real estate TIMELESS ELEGANCE ON TOP OF BUDAPEST

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WHITE STAR REAL ESTATE

EÖTVÖS12 – A UNIQUE PROJECT DEVELOPED FOR THE LOVERS OF THE LUXURY LIFESTYLE

If you happen to walk around the Normafa area, you may hear the noise of construction from what was known as the Svábhegy Sanitarium for decades. A new residential area is being born, one that will certainly attract the rich&famous of Hungary. János Gárdai, the Managing Director of White Star Real Estate gave Diplomacy&Trade a glimpse into what is being developed behind closed doors.

elements. The property on Svábhegy that we are turning into luxury homes, used to serve as a sanitarium for children. When you walk down the magnificent main building – even in its present, run-down state – you feel its elegant past, every cornerstone tells a story.

We are confident this will attract potential residents.

DIPLOMACY&TRADE How feasible is it to

DIPLOMACY&TRADE You may be creating a new

renovate a hundred-year old building to create a luxury villa park in Budapest?

JÁNOS GÁRDAI White Star Real Estate group takes pride in preserving the treasures of the past centuries and developing real estate that will stand the test of time and deliver enduring value. One example is Markó street 9: it used to be an electrical transformer building under protection as a historical monument that we turned into a Category A office building preserving the historical character and adding special interior design w w w . d t e u r o p e . c o m

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JÁNOS GÁRDAI The area, with its abundant natural forests and green hills, is a very popular place for leisure activities and excursions and the site itself offers excellent air quality, direct garden access and breathtaking panoramic views. Car traffic will be confined below ground, so it will truly feel like living in a forest.

DIPLOMACY&TRADE Besides the location and the

DIPLOMACY&TRADE The property itself has

a unique history.

JÁNOS GÁRDAI Indeed. The property was owned

by Baron József Eötvös, a Hungarian writer and statesman. The whole Svábhegy neighborhood was popular among the aristocracy of the 19th century. We aim to bring this feeling back by preserving the magnificence of the monumental main building and creating six additional villas that match the elegance of the central residence.

favorite home for Budapest’s aristocracy.

surroundings, what makes Eötvös12 a unique residence?

JÁNOS GÁRDAI The villa park will be a link between heritage and modernity. Every care has been taken to ensure that residences in both the historic art déco style main building from the 1920s and the 6 modern villas will be the most up-to-date, elegant, serene and attractive in Budapest. The needs of all types of residents, whether couples, singles or families will be met owing to the variety of well thought-through, exclusive amenities and facilities on site.

JÁNOS GÁRDAI That is the plan. Eötvös12 is

a unique project developed for the lovers of the luxury lifestyle. We believe that we are building livable and elegant homes on one of the most prestigious locations of Budapest. The villas are developed in a unique green surrounding, with 3.5 hectares of beautifully landscaped gardens of abundant, mature trees.

DIPLOMACY&TRADE It will actually feel like you

live in a forest.

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DIPLOMACY&TRADE What do you mean by

exclusive amenities?

JÁNOS GÁRDAI From the spacious and

elegant communal areas and reception services to a cigar salon, equipped fitness room and leisure islands many small services will support the well-being of residents. The elegant interior design solutions, state-ofthe-art building materials, large terraces and window surfaces, technical and smart home

solutions and layouts adapted to the latest international trends will make these homes truly exceptional.

DIPLOMACY&TRADE Should we rush to secure

an apartment?

JÁNOS GÁRDAI Well, I wouldn’t wait. We are

just starting the construction; residents will be able to settle in the second half of 2022. There are only 107 apartments and we have sold 10% of them already.

DIPLOMACY&TRADE Who are the developers

behind the project?

JÁNOS GÁRDAI White Star Real Estate has

been present in the Central and Eastern European region for two decades, and we are an active part of the real estate development and management industry in Poland, the Czech Republic, Slovakia and Romania, as well as in Hungary. In the past 20 years we have developed some 2.3 million square meters in more than 50 successful projects.

Cain International focuses on gateway and opportunity cities in growth markets. The firm’s collaborative approach with established local partners has resulted in an international portfolio of investments, joint ventures, and developments. Cain International’s US portfolio includes projects in Miami and Beverly Hills, its European investments span London, Barcelona, Dublin, Krakow, Madrid, Warsaw and now Budapest.

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switzerland A GOOD LOCATION FOR SWISS BUSINESS

As the Deputy Head of Mission of the Embassy of Switzerland in Budapest, István Kocsis explains to Diplomacy&Trade, Sensirion and Flisom are both spin-off companies of the Zurich based Swiss Federal Institute of Technology (ETH Zürich). They are highly innovative companies, representing the top technology level of their sectors.

A world leader in Debrecen Sensirion used to call itself “the largest start-up of Switzerland.” Nevertheless, it has become a worldwide leading company in digital micro sensors and systems. Its research, development and production units are located in Switzerland but the company realized that there is a worldwide demand for components, which include their core products. From next year, Debrecen will become a base for the assembling of these components. The Hungarian authorities managed to convince Sensirion of Debrecen’s qualities, and the city had been chosen among

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several other locations in the region.

István Kocsis believes that with László Ábrahám, the former CEO of a large multinational manufacturer, Sensirion found a very experienced leader for their Hungarian operation and they are ready to create 50 jobs.

Flisom extending production capacities to Hungary Flisom develops cutting-edge technology in the field of solar energy. In cooperation with its partners, Flisom has developed a solar film, which does not rely on heavy glass modules.

It enables new implementation fields for the generation of solar energy. After the successful start of a production line in Switzerland, the company decided to extend its production capacities and has chosen Hungary as its second production base after Switzerland.

They had to choose from among several Hungarian locations and finally decided to establish a manufacturing base in Kecskemét,

what kind of information/help is solicited by would-be investors, István Kocsis points out that “Swiss companies usually act very much independently from the Swiss authorities and usually do not involve us as a site location assistance. However, the Embassy of Switzerland offers publicly accessible information about the Hungarian business environment. Besides publishing our annual economic reports and business guides, we are, of course, also available for individual consultations if required. From time to time, companies turn to the Embassy to ask for support in a variety of issues. For instance, very often companies would like to share their ceremonial events with the official representation of their home country, but there are also cases, when companies ask us for assistance, we examine all possibilities and try to find a solution. Most of the Swiss companies are also members of the Swiss-Hungarian Chamber of Commerce (Swisscham Hungary) where they can exchange information among one another, the Hungarian authorities and our Embassy. I strongly believe that this is a very important platform to keep regular contact and to enhance the flow of information within our business community and the Embassy.”

creating about 140 new jobs in the area. This marks a very important step for Flisom in order to supply customers in a larger scale.

Over 800 Swiss investors Figures by the Hungarian Statistical Office suggest that there are more than 800 Swiss investors offering about 29,000 jobs in Hungary. “We do, of course, not know each of these companies, but we know that most of them are very satisfied with the business location and are continuously increasing their activities. Subsidiaries of Swiss companies are fully integrated into the Hungarian business environment, since they are very often led by local managers. The trust in their local management is one reason why tensions can often be solved within the national framework,” the Deputy Head of Mission highlights.

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Earlier this year, two Swiss companies announced that they had chosen Hungary to invest in: Sensirion is establishing its first European production site outside Switzerland in Debrecen, while Flisom chose Kecskemét for the location of its first plant of industrial capacity.

DÁVID HARANGOZÓ

SWISS COMPANIES FULLY INTEGRATED INTO THE HUNGARIAN BUSINESS ENVIRONMENT

switzerland

DOING NOW WHAT PATIENTS NEED NEXT ROCHE: OVER 35 YEARS OF COMMITMENT IN HUNGARY

Providing medical solutions that improve people’s quality of life on a daily basis, while also constantly working on the innovations of the future – this dual mission of the Swiss multinational healthcare company Roche is also the driving force for the management and staff of the Hungarian subsidiary established back in 1984.

Roche is the world’s largest biotech company, with truly differentiated medicines in oncology, immunology, infectious diseases, ophthalmology and diseases of the central nervous system. Roche is also the world leader in in vitro diagnostics and tissuebased cancer diagnostics, and a frontrunner in diabetes management. Combining their strengths in pharmaceuticals and diagnostics, Roche says it is uniquely positioned to make Personalized Health Care (PHC) a reality.

The company has been present in Hungary for over 35 years to get Roche's most innovative medicines to the Hungarian patients, contributing to the treatment of the patients with 74 therapies.

It currently has four divisions in the country: Pharmaceutical, Diagnostics and Diabetes Care as well as the Roche Services & Solutions Operations (RSS). The RSS is a place full of courageous, interesting and diverse talents. It can help to contribute to a higher purpose – both from a personal and from a global perspective – by complying with the slogan ’Doing now what patients need next’. In 2019, Roche Hungary, which now employs over a thousand people, was also selected for the venue of the European Center for The Safety of Medicinal Products. These facts show that Roche is an established and important contributor to the Hungarian economy. According to the latest figures available, Roche Hungary invested almost three quarters (74%) of their domestic revenue back into the country, thus, bringing their total contribution to Hungary’s gross domestic product to HUF 20.6 billion, i.e. 0.04% of the total GDP. In 2019, Roche involved 720 Hungarian patients in clinical trials across 117 sites, conducting, in total, 64 research studies across six therapeutic areas such as oncology, immunology/ inflammatory disease, neurology/psychiatry,

AT THE OP E N I NG O F T H E PV H U B ( FRO M L E FT TO RIGHT): DE P U TY M I NI S T E R O F FO RE I GN A FFA I RS A ND TRADE LE VE N T E M A GYA R, RO C H E H U NGA RY GE NE RA L MANAGE R IRM A VE B E RI Č A ND A NTO NI O D E L S A NTO (P HC-SAFE TY I NTE RFA C E , RO C H E )

pulmonology, hematology/nephrology, and ophthalmology. The majority of the trials are still related to oncology, but the firm launching more and more in neurology and ophthalmology as well. Most importantly, Roche Hungary made payments totaling to HUF 1.6 billion (CHF 5.6 million) and saved HUF 4.4 billion (CHF 15.1 million) for the Hungarian drug budget.

PV HUB Budapest Roche’s latest investment project in Hungary is the European pharmacovigilance hub. The PV HUB Budapest, which started operation in September 2019, is tasked with processing the side effect reports submitted from 23 European Union countries and six from the Balkan Peninsula. This global unit creates new highlyskilled workforces and plays a critical role in ensuring drug safety across Europe. The team plays a crucial role in capturing and analyzing data from real world usage and clinical trials.

The continuous monitoring and reporting of side effects is required by law, and facilitates the safe use of pharmaceuticals.

Healthcare solution company

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ROCHE HUNGARY

Roche is not a simple pharmaceutical company but one full of forward-looking solutions. One of these solutions is personalized healthcare.

Despite the fact that human beings differ from each other in many ways, including illnesses, healthcare tends to treat diseases, symptoms or reasons rather than individual patient cases.

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diseases better than ever before, the usual routine and patterns of healthcare are still predominant as of 2020. Personalized healthcare is aimed at leaving behind this approach keeping in mind that every patient is unique.

When asking themselves the question how they can reform the healthcare system for the benefit of future generations, professionals at Roche believe that personalized healthcare can be more efficient, and make health care systems sustainable in the face of rising costs.

This requires development and digitization of healthcare systems, sharing and processing the data collected on different platforms, and integrating real world evidence data into clinical trials. Personalized healthcare should be implemented all along the patient pathway, from early precision diagnostics to personalized therapy planning and complex patient management. Roche wishes to make personalized healthcare widely available for Hungarian patients, therefore since the launch of FoundationOne service in Hungary it gave the opportunity of tailored treatment proposals for almost 300 patients based on genomic profiling.

More solutions The most important task of Roche’s diagnostics business is to develop, optimize, maintain and service in vitro laboratory processes in the healthcare system, scientific research and education.

This includes laboratories of pathology institutes supporting oncology treatments; central laboratories for supplying hospitals, including support for diagnostic solutions within the departments; and diagnostic devices used in primary care, outpatient clinics and ambulances.

In the partner laboratories 43,000 tests are carried out daily using Roche solutions. This equates to 16 million tests annually. Some 70% of the pathology laboratories supporting oncology care in the country use Roche histological diagnostics solution. On average, Roche diagnostics staff spend over 100 hours a week in our partner laboratories on maintenance and servicing, setting up and consulting.

Another great example can be found in Roche Diabetes Care, which – for over 40 years and with its Accu-Chek brand – has been dedicated to enabling people with diabetes to live life as normal and active as possible, as well as empowering healthcare professionals to optimally manage their patients’ condition.

The current Accu-Chek portfolio offers people with diabetes and healthcare professionals innovative products and impactful solutions for convenient, efficient and effective diabetes management. This includes blood glucose meters, lancing devices, insulin delivery systems, and digital solutions for data management, advice, coaching and education.

The company is looking for opportunities to continuously improve and innovate their portfolio in order to further improve medical outcome and the quality of life of people with diabetes. The areas of focus include forming collaborations on solutions that accelerate and enhance the portfolio of glucose monitoring technologies and insulin delivery systems; and services and solutions that enable digital diabetes management.

All this is well summarized by Roche Hungary’s mission statement: Close the gap between the Hungarian and European patients’ outcomes by building partnerships with Hungarian patients and the healthcare system’s stakeholders, utilizing Roche’s portfolio and beyond.

WHAT HAS ROCHE HUNGARY DONE DURING THE COVID-19 PANDEMIC?

• Roche Hungary was one of the first companies to donate HUF 20 million to improve the COVID situation; • It purchased equipment necessary for hospitals in the amount of HUF 10 million; • It donated a total of 128,040 milligrams of medicine to hospitals in Hungary; • Roche staff volunteered to help in the operation of local hospitals; • Local Charity Program – Helping children of hospital doctors learn online together – over ten Roche employees participated in the program (‘Sharing our knowledge, giving our time and support for those who need it’); • The donation of 303 laptops to children in need to participate in online education; • Providing protection for own staff (masks, hand sanitizers) • Immediate transition to flexible working • Keeping in touch virtually with the external partners

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switzerland THE UNKNOWN HERO

WALKING TOURS IN COMMERATION OF CARL LUTZ AND THE HUNGARIAN HOLOCAUST

issued the first collective passport in July 1944 that contained 2,000 names; subsequently, two more similar documents were produced.

As the third option, Palestinian ID cards given to Jews by Carl Lutz entitled their holders to immigrate to the country then under British rule. According to some estimates, Carl Lutz helped 62,000 people, although the exact number is impossible to determine in retrospect.

Visiting the venues Carl Lutz became the engine of diplomatic rescue in Budapest and all this was discussed in detail during the walk. The walk demonstrated Carl Lutz's activities, perseverance and courage in several places during the most important stages of his diplomatic service in Budapest in those times of distress.

Swiss diplomat Carl Lutz who saved the lives of tens of thousands of Hungarians during World War II was born 125 years ago. Carl Lutz Memorial Walks were launched in Budapest on September 3 to acquaint people with venues tied to the activities of the diplomat over seven decades ago.

On September 3, the Ambassador spoke in front of the statue of Swedish diplomat Raoul Wallenberg who also saved thousands of Hungarian Jews from deportation to concentration camps. He highlighted that “after the war, Carl Lutz was recalled to Switzerland. Regrettably, it was only several decades later, in 1995, that the State of Switzerland finally acknowledged Carl Lutz’ heroic acts of humanitarian aid and no longer condemned his actions as an ‘infringement of his boundaries’, but finally rehabilitated his reputation as an outstanding diplomat. His

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Swiss representation During the program, participants had the opportunity to have a glimpse of diplomatic dealings in World War II. For instance, the role played by the diplomatic missions of the neutral states during the Hungarian Holocaust.

It was for the first time in the 19th century that Switzerland acted in behalf of other states – first during the Prussian-French War. The same can be said about the period of the First World

Protection Measures Carl Lutz, the former vice consul of Switzerland in Budapest (1942-1945), saved tens of thousands of Hungarian Jews during the emergency by providing the prosecuted with three types of IDs and passports. One was a letter of protection called the Schutzbrief with a Swiss flag and stamp, in possession of which those concerned received Swiss diplomatic protection until their departure, so for Jews deprived of almost all their rights, the document often meant life.

The other was called a collective passport, which was a special residence permit, valid for several weeks, issued by the National Central Authority for the Control of Aliens. Carl Lutz

DÁVID HARANGOZÓ, GÁBOR BANKÓ

A hero recognized eventually

astonishing actions have also been recognized internationally. He was nominated three times for the Nobel Peace Prize, and ‘Yad Vashem’ and the State of Israel declared him as the first Swiss ‘righteous among the nations’.”

Dávid Merker, co-founder and managing director of ‘Hosszúlépés. Járunk?’ that organizes informative walks in the Hungarian capital, introduced the first Carl Lutz Memorial Walk to the participants of the commemorative event as well as the guide for that day, historian Laura Csonka. Thanks to the Swiss Embassy’s support, the public had the opportunity to participate free of charge on four different days for walks to venues that can be tied to the activities of Carl Lutz over seven decades ago.

War, and then about the years of the Second World War when Switzerland set a record by representing as many as 35 countries worldwide.

In Hungary, it represented 14 countries. These countries that were at war with Hungary, and thus, diplomatic relations were severed included the United States, Great-Britain, Egypt, Belgium, Yugoslavia, Chile, as well as several other Central and South American countries such as Salvador and Honduras, but also included the British mandate Palestine. This representation included the provision of consular services, financial assistance, legal advice and news services to the citizens of the states concerned.

The walk illustrated the skills and attitudes that were required for Carl Lutz to be able to carry out rescue operations in a war situation completely different from his usual diplomatic work, bypassing the attention of the Germans and the Hungarian Arrow Cross movement.

Participants were made aware of the ingenuity that was needed for Carl Lutz to carry out his rescue operations as well as about the lives of his helpers and the fate of several of the tens of thousands saved. At the same time, participants could also feel the moral dilemmas that Carl Lutz faced in the war in Budapest, which cannot be interpreted under normal conditions.

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The Swiss Embassy in Budapest originally planned this commemoration to be held in March on Carl Lutz’ the actual birthday but the COVID-19 crisis caused it to be postponed. Instead, the event was opened in Szent István Park next to the Danube in September by the Swiss Ambassador Peter Burkhard. “We believe that it is never too late to proudly look back to Carl Lutz’ exceptional efforts, so we are equally pleased to do it today, a couple of months later,” he said.

Carl Lutz worked as a vice consul at the Swiss Embassy in Budapest between 1942 and 1945. From the autumn of 1944, he granted Swiss asylum to thousands of persecuted people by means of a certificate that officially recognized the holder as a Swiss citizen.

• St. Stephen’s Park reveals how Carl Lutz lived and worked with Raoul Wallenberg and other diplomats.

• In the Dunapark house, participants became acquainted with the history of the international ghetto in Újlipótváros and the recollections of the survivors of the protected houses • At the Palatinus houses, participants of the walk discovered why the international ghetto was established in Újlipótváros and how this part of the city, which is unique in Budapest to this day, was formed.

• In the Glass House, participants learned about the key role of the building in the work of Carl Lutz, and heard the story of Carl Lutz and his second wife, Magda Csányi.

• The walk ended at the Carl Lutz Memorial at the American Embassy, where the changing perceptions of the diplomat and the role of Swiss diplomacy and Switzerland in today’s Europe were discussed.

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UNITED FOR GLOBAL EXCELLENCE IN DENTISTRY

MORE THAN CREATING SMILES

Every vision has its story. Straumann’s began more than 60 years ago. Since then, their innovations and achievements have become landmarks in dentistry worldwide. Straumann began as a family-owned business, grew into a publicly owned holding, and today, is comprised of a number of international companies around the world.

from its research and development activity.

Zsolt Fehérvári notes that in this industry, it is Straumann that spends, by far, the most money on R&D. “We have implant materials, like the patented ‘Roxolid’, which is a titanium-zirconium alloy. For a long time, only Straumann offered hydrophilic-surface implant that speeds up healing and osseointegration. Before placing a new product on the market, the company puts it through licensing processes (like animal testing and laboratory examinations) equivalent to those applied in the pharmaceutical industry.”

The impact of the pandemic “In the early days of March when I received the latest numbers from all the countries Straumann is present in, I was shocked by what I saw on the Chinese market (the fourth most important one for Straumann): 90% down in February compared to the same month of the previous year. That made us suspect that the situation would soon be similar in Hungary. The pandemic dealt an especially serious blow to the Hungarian operations of Straumann. Apart from Hungary, there was only one more European country where a complete shutdown of non-emergency dental care was ordered by the authorities. It meant that our turnover fell to zero overnight. Therefore, we went through a very difficult period. However, there was another factor, as well. Dental tourism is very significant in Hungary – with 50-60% of all implants sold in Hungary are estimated to be for patients coming from abroad,” he points out.

As for the current situation, Zsolt Fehérvári is happy to report that – following the lifting of the ban on non-emergency care – the July and August figures were very favorable, so much so that they exceeded the turnover of these months of 2019. “Unfortunately, this process is in reverse again with the government closing the country’s borders. This is something we cannot do much about or prepare for…,” he adds.

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DÁVID HARANGOZÓ, STRAUMANN GROUP

Helping those in need

The story of the Hungarian Branch of Straumann, which researches and develops, manufactures and supplies dental implants, instruments, etc., began over a decade ago when the company decided to set up its own subsidiary in this country. “When that decision was made by the company to establish its own office and warehouse in Hungary and I joined the company, we started with a significant market disadvantage,” Country Manager Zsolt Fehérvári explains to Diplomacy&Trade.

“Straumann did not have a good image here, so, it was not even from zero but from minus that I had to start to build,” he adds. After the first few years full of difficulties, seven successful years followed with the Hungarian branch showing unbroken development, producing double-digit growth in each of these years.

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alloys that are still used in watch springs today.

A breakthrough in the use of non-corroding alloys for treating bone fractures prompted Dr Fritz Straumann to enter the fields of orthopedics and dental implantology.

Zsolt Fehérvári highlights that the company had long been present in the premium category of dental implants only. (Currently, about 30% of the global market can be considered premium category.) Although, Straumann is market leader in the implant segment, it is only in 7th place in the overall dental market. Therefore, the company was challenged to enter the nonpremium implants category and other dental products, as well, to improve its business in general. As a result, the Straumann Group was formed following the acquisition of several firms of different dental profiles. One of the most significant of these acquisitions was that of the Brazilian implant production company ‘Neodent’ in 2012. Neodent produces high-quality implant systems at an affordable price.

“With that acquisition, we entered to the nonpremium segment, but we are now also present in the digital dental technology area, which is a

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very rapidly and intensively developing segment.

In the latter sector, Straumann acquired the Canadian company ‘Dental Wings’ that produces software and actual pieces of equipment.

Straumann® CARES® Digital Solutions is our comprehensive and flexible digital offering. It is dedicated to our customers’ specific needs and to making their daily practice life easier, more efficient, more predictable and more profitable.” the Country Manager says.

However, that is not the entire portfolio offered by the Straumann Group. In addition to implant systems and related prosthetics (through the acquisition of a German company), there is orthodontics by way of the production of ‘clear aligner’ (by acquiring the American firm ClearCorrrect) and collaborating with manufacturers of biomaterials, basically covering the entire dental field and offering solutions ‘from roots to crowns’.

According to the Country Manager, Straumann is consistent in the field of corporate social responsibility. “There is a dentist whose foundation supports physically handicapped children and organizes programs for them.

We are one of the supporters of the annual charity gala of this foundation. We also help in certain cases when patients with less resources are in dire need of dental solutions. There is a very important foundation being set up by several dentists aimed at helping people in the underdeveloped regions of Hungary. Straumann will participate in this project by providing dental care solutions to patients who cannot afford that,” Zsolt Fehérvári concludes.

Development through innovation Straumann implants and solutions have earned their reputation thanks to Swiss precision and the company’s achievement resulting

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­­wine

HONEST WINES HEIMANN & FIAI LAUNCHES A NEW LINE OF WINES

lot that was aged in amphorae.” The winery has launched its new line of wines this year. Besides Szekszárd Kadarka and Szekszárd Kékfrankos there are single vineyard bottlings coming from Porkoláb-völgy, Baranya-völgy and BatiKereszt. The grapes for the top of the range ’Szívem’ Kékfrankos come from a vineyard that was planted more than half a century ago, in 1967. The old vines lend it a special character though this is still in keeping with the general outlook of the rest of the range.

“After graduation I went on to work as a trainee at various outstanding Burgundy, Burgenland and Australian wineries. Their wines made from Pinot Noir, Syrah or Blaufränkisch just took my breath away. They were quite different from the wines I was taught to make during my years of education and also from the ones I had tasted back home,” he says. After taking the helm of his family’s vineyard, he didn’t waste much time putting his ideas into practice. From the grapes of the 2018 harvest he crafted six new wines which are not only different in concept and style from earlier Heimann wines but constitute a new line in their repertoire. “In a nutshell, I would say that the main thing about the new style is putting two local varieties on

photo by

ZSÓFIA PÁLYI, BÁLINT HIRLING, ALBERT KIS

Following years of work in the Szekszárd-based family winery by the side of his mother, Ágnes Heimann, Zoltán Heimann Jr. took over the management in 2018.

center stage: Kadarka and Kékfrankos. None of these varieties can compete with Cabernets or Merlots in body, weight or alcohol; however, they share a unique kind of fruity quality and the ability to express their terroirs. What I set out to do was not alter their character; on the contrary, it was to achieve an honest expression of the essence of their characters with the Heimann & Fiai wines.” More body, more oak, more concentration was not what he is looking for: he gave up on the idea of producing ‘blockbusters’. This meant Heimann had to let go of things like late picking and prolonged ageing in oak. The focus today is on finding the best plots, clones, optimal ripeness and something that is less often discussed among wine lovers: fermentation. “By putting whole bunches of intact berries into the fermentation vats fermentation time increases and the resulting wines become more expressive, more individual fruit aromas come to the fore.

Another addition in terms of aromas is the special leafy, sappy character deriving from the stems. We consider the aromas and flavors coming from the grapes as the main assets of the two varieties, so it is vital not to lose them during the ageing process. That is why we have opted for shorter barrel ageing and there is one

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JAZZ MIGRATION: A DOUBLE CONCERT BY NOSAX NOCLAR / KEPLER OCTOBER 28, BMC

The concert of NoSax NoClar will remind us that travel can still take us into the mystery of the unknown; that is something we should cherish. Julien Stella and Bastien Weeger may extend our horizons outwards, through Julien Stella's boundless musical curiosity (Ireland, the Balkans, for example); but also inwards by letting the sound of breath bring us back into our own dreams. In this unusual combination of instruments, the two musicians have no alternative but to continuously reinvent themselves, and to maintain the energy level needed to keep their breath going. There is nothing like limitation and restriction to foster inventiveness. Taking short forms, always at a slow or medium tempo, the three musicians of the Kepler Trio, (Maxime Sanchez, piano, Adrien Sanchez, tenor sax, Julien Pontvianne, tenor sax and clarinet) set out to explore timbres, echoes, chimeras, and both natural and artificial resonance. And as they do so, their minimalist approach becomes poetic and reveals its depth.

Ultimately the listener is led to focus where song and melody simply overwhelm the senses, and is taken right back to a lost paradise of innocence.

OLDTIMER SHOW WITH SAUSAGE MARKET OCTOBER 9-11, HUNGARIAN RAILWAY MUSEUM

Oldtimers represent the true value of craftsmanship and preserve memories of the car industry. It's best to admire them at this festival that is, according to organizers, one of the largest veteran vehicle exhibitions in Central Eastern Europe, with 500 vehicles on show, including a very unique 104-year-old hybrid car this year, named Woods. The annual event which celebrates its 15th anniversary in 2020, offers a large outdoor and indoor space (100,000 square meters) for exhibitors and visitors alike, with interactive and family programs, including steam engine rides, velorails or railbikes, a train rotating platform, railcars and an omnibus.

There will be farm animals and kids are also invited to play in the bouncy castle and enjoy face-painting. A gastro-street will offer Hungarian specialties, with a special focus on sausages. For those with an eye for beautifully restored veteran, antique, nostalgic and classic vehicles, this event is a must.

photo by

JEF RABILLON, DOR FILM/LUKAS GNAIGER, MUSEUM OF FINE ARTS - HUNGARIAN NATIONAL GALLERY, DEPOSITPHOTOS.COM, THEO O. KRATH, MUSEUM OF APPLIED ARTS BUDAPEST/GELLÉRT ÁMENT

www.bmc.hu

www.oldtimershow.hu

EYEFUL FILM FESTIVAL (SZEMREVALÓ/ SEHENSWERT) OCTOBER 1-8, MŰVÉSZ CINEMA

Organized jointly by the Embassy of Switzerland, the Austrian Cultural Forum and the Goethe Institut, EYEFUL brings, to Budapest’s Művész Cinema, the best new films from Germanspeaking countries, including several prize-winners. The films will be shown in original language, with Hungarian – and in some cases English – subtitles. One of the most exciting pieces to be screened is a new adaptation of the German psychiatrist and writer Alfred Döblin’s novel, ‘Berlin Alexanderplatz’. This film epic is a grim journey into the “dark night of the soul” and last but not least, the dense atmosphere of Berlin in the early 21st century. In another film, ‘Gipsy Queen,’ Ali as a child was trained by his father to become a world champion boxer to break out of their miserable conditions in Romania. However, after the girl escapes with her love, her father disinherits her. She lives in Hamburg, and is successful in boxing, but at risk of losing her children as a single mother. In ‘Destiny and Beginning,’ Nora meets Nathan after losing her love. She has such a strange feeling that she already knows the man from somewhere, but has no idea what is connecting them. Finally, a bare-hearted comedy based on Thomas Meyer's novel of the same title, ‘Wolkenbruch's Strange Journey into the Arms of a Sick,’ shows Motti who falls in love with a non-Jewish girl in college, which his orthodox mother experiences as a tragedy. www.szemrevalofesztival.hu

TUTANKHAMUN – MYSTERY AND TREASURES UNTIL OCTOBER 31, KOMPLEX

Travel back in time and discover the life of the cursed Pharaoh! ‘Tutankhamun – Mystery and Treasures’ is a traveling exhibition that has been viewed by more than 6 million people in Zurich, Dublin, Brussels, Madrid, Seoul and Paris.

“I see beautiful things!” exclaimed British archaeologist Howard Carter as he lit a candle through a small hole in the forepart of the Pharaoh's tomb. The Pharaoh, had been dead for more than 3,000 years when Carter made an archaeological discovery that is unmatched to this day. He found a completely undamaged tomb of a Pharaoh with all his treasures. Almost 100 years after the sensational exploration, the ‘Tutankhamun – Mystery and Treasures’ exhibition presents the story of the discovery in a unique way, on 2,000 m2 showcasing over 1,000 objects, graphics and videos. “For the first time since the discovery of Tutankhamun's tomb, this is an exhibition that allows people to rediscover treasures and funerary items in the exact layout as they were found in 1922,” reveals Dr Wilfried Seipel, Egyptologist and former director of the Vienna Museum of Fine Arts. www.tut-kiallitas.hu

TUNED IN – THE COMING TOGETHER OF THE HUNGARIAN NATIONAL GALLERY AND THE 70-YEAR-OLD BUDAPEST PUPPET THEATER HUNGARIAN NATIONAL GALLERY

Celebrating the 70th anniversary of the Budapest Puppet Theater, the Hungarian National Gallery will display puppets that define and represent the past and present of the Puppet Theater, bringing to life the much-loved figures of well-known stories, folk tales and legends. The exhibited figures that shaped the fine art image of the Puppet Theater the most in the past seventy years, were selected from more than 20,000 puppets kept in the storage of the Puppet Theater, which makes this show truly special. For some of the puppets this exhibition is their public debut, while others have been restored specifically for this show with the hope that they will be featured in other temporary exhibitions in the future. Of the dramatic arts, puppetry has the strongest link with the visual arts since the characters – the puppets themselves – are works of fine art. Puppet design is an applied art genre since the puppets are made to suit the director’s concept, the story and the hands of the actors. However, it is also an autonomous genre creating a world of its own and shaping the appearance of the characters through the imagination, taste and style of the designer. The acting life of a puppet lasts only as long as the play in which it is brought to life, but it can be admired as a work of fine art even decades after its last appearance on stage. The puppets are exhibited in the spaces of the Hungarian National Gallery’s collections of 19th and 20th Century Paintings, Contemporary Arts and International Art after 1800, in a way that they can each engage in a dialogue with a painting, allowing the two genres to comment on each other atmospherically or historically.

ART NOUVEAU – A HUNGARIAN PERSPECTIVE THROUGHOUT THE YEAR, RÁTH VILLA

As of 2018, György Ráth villa houses a permanent exhibition, displaying the finest selection of the Museum of Applied Arts’ Art Nouveau collection, making it available for the public during reconstruction of the museum’s main building on Üllői út. At the same time, it also pays tribute to the memory of the first director of the Museum, György Ráth (1828–1905). The repertoire of up to 600 objects – some of which have never been exhibited before – represents all genres of the applied arts, from three decisive schools of Art Nouveau: the Austrian, the British and the French. The Art Nouveau interiors of the Ráth Villa provide an authentic environment for the exhibition which features beautiful Zsolnay ceramics, glass works by Tiffany and Gallé, jewelry by Lalique and exclusive pieces of furniture by Bugatti. The dining room and sitting room offers a glimpse into the style of Hungarian homes of the turn of the century.

www.mng.hu

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culture

THE OSCARS OF PHOTOJOURNALISM WORLD PRESS PHOTO EXHIBITION 2020 DISPLAYS BIGGEST MOMENTS OF LAST YEAR

STRAIGHT VOICE © Yasuyoshi Chiba, Japan, Agence France-Presse A young man, illuminated by mobile phones, recites protest poetry while demonstrators chant slogans calling for civilian rule, during a blackout in Khartoum, Sudan, on 19 June.

The world's most prestigious annual travelling photo exhibition, profiling the globe's top press photographers and showcasing the world's most provocative and poignant press photos, arrives in Budapest on September 24.

In its 63rd year, the World Press Photo exhibition is the most significant travelling exhibition dedicated entirely to photojournalism. Annually, these exhibitions attract up to 5 million people worldwide in some 50 different countries. Some locations of the 2020 worldwide tour, however, have been postponed due to the global situation surrounding the COVID-19 pandemic, and the World Press Photo Foundation’s annual Awards Show and Festival have been cancelled. “The need for visual journalism we can trust has never been greater. We believe in the power of showing and the importance of seeing high-quality visual stories, and we’ll keep on working hard to fulfil our mission: connecting the world to the stories that matter,” the jury’s message reads. Winners of the 2020 Photo Contest and the 2020 Digital Storytelling Contest – including the winner of the World Press Photo of the Year, World Press Photo

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Story of the Year, World Press Photo Online Video of the Year, and World Press Photo Interactive of the Year – were announced on April 16, 2020 and presented to the global audience through a wide range of online and media channels.

This will strongly affect the global climate in terms of increasing temperatures and sea-level rise, yet Arctic climate system processes are poorly represented in climate models. This is because until now scientific missions have not been able to penetrate the region during the six-month long night of the Arctic winter. The Polarstern is the central ship of an expedition run by the Multidisciplinary drifting Observatory for the Study of Arctic Climate (MOSAiC), especially designed to withstand extremely low temperatures and break through thicker ice, enabling around 100 researchers and crew to work all year round. MOSAiC data on the atmosphere, ocean, sea ice, ecosystem and biogeochemistry will be fed into global climate models,” Horvath tells the story behind her award-winning photo in Nature category. Top honors, the ‘World Press Photo of the Year’ went to Japanese photographer Yasuyoshi Chiba for his image ‘Straight Voice,’ of a young man, illuminated by mobile phones, reciting protest poetry while demonstrators chant slogans calling for civilian rule, during a blackout in Khartoum, Sudan, on June 19, 2019. “The place was a total blackout. Then, unexpectedly, people started clapping hands in the dark. People held up mobile phones to illuminate a young man in the center. He recited a famous protest poem, an improvised one. Between his breath, everybody shouted ‘thawra’, the word revolution in Arabic.

His facial expression and voice impressed me, I couldn’t stop focusing on him and captured the moment,” Yasuyoshi Chiba says.

and her Cub’. Shot for The New York Times on October 10, 2019, the photo shows a polar bear and her cub come close to equipment placed by scientists from Polarstern, a ship that is part of a scientific expedition investigating the consequences of Arctic climate change, in the central Arctic Ocean. “The Arctic harbors some of the fastest-retreating sea ice on the planet and has twice the average global heating rate.

The Budapest Show and side events Tamás Révész, Pulitzer Memorial Award winning Hungarian photographer has been the organizer of World Press Photo Exhibition in Budapest since he won a World Press Award himself in 1991. He says he is very proud to present the global exhibition in Hungary and see an increasing number of visitors each year. “Visitors often leave speechless, some with a tear in their eye. This year’s collection also consists of moving, sometimes very disturbing images – seeing them one after the other is a very powerful experience, even if you have followed the news through the year,” Révész says, adding that he believes that the retrospective photo exhibition is a call for tolerance, empathy and humanity. “I hope it helps us to better understand the world around us.” Hosted by the Hungarian National Museum and complete with several accompanying exhibitions and side events such as ‘Mobile Photos,’ and ‘Digital Storytelling Documentaries video screenings,’ the month-long show closes on October 25.

The Stories That Matter To select the winners of the 2020 contest, an international panel of judges reviewed 73,996 photographs over a three-week period that commenced on January 12. The photos were submitted in nine categories, such as Contemporary issues, Environment, General news, Long-term projects, Nature, Portraits, Sports, Spot news, and the newest headline category introduced in 2019: Story of the year.

4,282 photographers competed from 125 countries, from whom 44 photographers were awarded, including Hungarian photographer Esther Horvath, for her photo titled ‘Polar Bear

POLAR BEAR AND HER CUB © Esther Horvath, Hungary, for The New York Times A polar bear and her cub come close to equipment placed by scientists from Polarstern, a ship that is part of a scientific expedition investigating the consequences of Arctic climate change, in the central Arctic Ocean, on 10 October.

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culture

DID YOU KNOW?

Due to the knock-off cubes, the inventor finds it impossible to say how many Rubik’s cubes have been sold to date worldwide, but estimates a total 500 million, which makes the cube the most popular puzzle toy in the world.

THE PUZZLE OF US ALL

photo by

ZSOLT SZIGETVÁRY/MTI

THE FIRST BOOK FROM THE FATHER OF THE RUBIK CUBE “This book will touch upon many things: creativity, symmetry, education, architecture, questions, playfulness, contradictions, beauty. But at its core, this book is about puzzles. It is about the puzzle of myself. It is about the puzzle of this magical object I discovered almost 50 years ago. And it is about the puzzle of us all,” the author says about his 200-page book being released this month in Austria, China, Germany, Russia, Slovakia, South Korea, Switzerland, the Czech Republic, the Netherlands, the U.K., and the U.S., in addition to Hungary. Ernő Rubik, in fact, became one of the first self-made dollar millionaires in the Communist East Block.

He was an architect teaching a class in 1974 when he decided to build a cube to teach students about 3D space. He soon realized it could become a hit toy when students and fellow teachers couldn’t put it down. In 1975 the then 30-year old Rubik first applied for a patent for his creation, called Magic Cube, but sales were sluggish. His breakthrough came when Hungarian businessman, Tibor Laczi, went to the state trading company Konsumex for permission to sell the Cube in the West. Eventually British toy expert Tom Kremer ordered a million cubes via Ideal Toy Corporation, and changed the brand name to the more recognizable Rubik’s Cube. Soon clubs were formed hosting competitions and sharing ideas to solve the Cube. In 1980 Rubik became a household name and won top toy awards in Germany, France and the U.K. The following year an exhibition was organized for the cube at the New York Museum of Modern Art. In 1982 the words Rubik’s cube were added to the Oxford w w w . d t e u r o p e . c o m

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The Hungarian inventor of the world’s most iconic puzzle, Ernő Rubik aims to inspire with what he’s learned in a lifetime of creating, curiosity, and discovery. Readers may also find out how a small puzzle became, and remains a phenomenon that resonates with a global audience and connects to fields across the spectrum of human creativity.

English Dictionary. Since its international launch, about one in seven people have played with the famous puzzle.

Puzzled?

Rubik insists he “discovered” the cube rather than invented it. “In my view, it is part of nature, and it’s not an artificial object; it’s a natural one,” he said. After spending most of his adult life with the cube, he now sees it as his eldest child.

“I’m very close to the cube. It was growing up next to me and right now, it’s middleaged, so I know a lot about it,” he told the New York Times in a Skype interview just

recently. Indeed, the often frustrating, ultimately rewarding device has turned 45 years old. And, it took its inventor a good 37 years to finally write a book. “The cube loves attention; I don’t. He is eager to interact with everyone; I sometimes find this a bit difficult. He’s quite ambitious; I am less so,” Rubik writes. ‘Cubed’ covers more than just the journey to inventing the eponymous cube. Rubik makes a case for always being an amateur – something he has always considered himself to be.

He discusses the inevitability of problems during any act of invention. He reveals what it was like to experience the astonishing

worldwide success of an object he made purely for his own entertainment. And he offers what he thinks it means to be a true creator. He encourages readers to embrace their inner curiosity and find the puzzles that surround them in their everyday lives. “If you are determined, you will solve them,” he writes. “Puzzles bring out important qualities in each of us: concentration, curiosity, a sense of play, the eagerness to discover a solution.”

THE CUBE

The Rubik's Cube is the ultimate metaphor for bewildering complexity and triumphant intelligence, creativity and innovation. There is only ‘one’ correct answer and 43 quintillion wrong ways to solve the puzzle, depending on the last number of moves. In other words, The Cube can be regarded as a symbol of the path from chaos to order. There are regular national and international tournaments around the world to solve it as quick as possible, even blindfolded, one handed and with feet. The first World Championship was held in Budapest in 1982, the second in Toronto, Canada in 2003 and the third in Orlando, Florida in 2005. The very first World Championship was won by 16-year-old student Minh Thai from the United States who solved the Cube in 22.95 seconds. Today, the world record is 3.47 seconds, set in 2018 by Yusheng Du. The Chinese speedcuber smashed the previous record by 0.75 seconds. The inventor is sure that his cube will not run out of fashion in the near future, and that new generations of passionate and enthusiastic young players will always find their way to it.

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