Policy chief of top office stresses focus on alliances amid rising protectionism

Economy

Policy chief of top office stresses focus on alliances amid rising protectionism

Published: 29 Aug. 2024, 19:55 Updated: 29 Aug. 2024, 20:01

SARAH CHEA
chea.sarah@joongang.co.kr

Dignitaries pose for a photo at the Korea Economic Forum at Lotte Hotel in Seoul Thursday. [PARK SANG-MOON]

Korea is committed to strengthening its alliances with the United States and Japan in an effort to mitigate ongoing supply chain risks as more countries pursue protectionist trade policies, said Sung Tae-yoon, director of national policy at the presidential office.

In a race to manage economic security, Sung addressed the importance of raising national prowess in high-tech sectors like semiconductors, EVs and batteries and nuclear energy.

“With global countries pushing for trade protectionism in key industries, even in raw materials, the Korean government must review our policy direction to secure stable supply chains and protect critical technologies,” Sung said during the 18th Korea Economic Forum at Lotte Hotel Seoul in central Seoul on Thursday.

“Establishing trilateral comprehensive cooperation with the United States and Japan remains the key task for Korea to achieve economic security.”

Sung shared his projections for the Korean economy and future tasks at the Korea JoongAng Daily’s annual forum with 23 ambassadors and over 100 corporate guests among the 173 people in attendance.

Also present were financial leaders including Korea Federation of Banks Chairman Cho Yong-byoung, Dr. Martin Henkelmann, president and CEO of the Korean-German Chamber of Commerce and Industry (KGCCI) and Park Chang-hee, the publisher and CEO of the Korea JoongAng Daily.

“Korea and the United States are engaging in a deeper alliance in building a favorable supply chain system since President Yoon Suk Yeol’s state visit to the country in April of last year, which marked the first state visit by a Korean president to the United States in 12 years,” Sung said.

“The cooperation led to investment in the United States by domestic corporations and a more aggressive entry into that market,” Sung added.

The presidential policy chief also noted Korea’s “normalizing relationship” with Japan, with eased trade bans and the resumption of high-level meetings between the two nations.

“Korea and Japan restored so-called shuttle diplomacy and have been solidifying our trust based on close communication and expanding cultural exchanges,” Sung said.

The need for cooperation with Latin American countries was highlighted in response to a question by Ambassador of the Dominican Republic Federico Alberto Cuello Camilo, where Sung hinted at further partnerships in the areas of critical minerals and personnel exchanges.

“Despite the geographical distance, the potential of economic cooperation is wide open,” Sung said. “Critical minerals are crucial in key industries like semiconductors, so I will closely communicate with related government departments to deepen alliances with Latin American countries.”

Sung also mentioned the importance of raising competitiveness in advanced technology like semiconductors and automobiles — two sectors that comprised one-third of the country’s total exports last year.

The Korean government has formed a task force to discuss how to build a stable ecosystem in Korea’s semiconductor industry and offer aid to help automakers lead the industry.

The Yoon administration in March pledged to invest around 500 trillion won ($375 billion) to build a semiconductor mega cluster in Yongin, southern Gyeonggi.

"To gain the upper hand in the high-tech sectors, a stable supply of electricity is essential," Sung said while highlighting the government's push to restore the nuclear energy ecosystem that faced a phaseout by the former Moon Jae-in administration.

The Yoon administration resumed the construction of Shin-Hanul reactor units 3 and 4 while the 10 existing nuclear plants in the country are also under operation.

“Beyond the geopolitical risks, there are constant challenges that our economy and corporations must overcome,” Sung said. “To gain economic security, Korea will navigate the uncertainties through policies that strengthen cooperation with partnering countries in a way that can lead to an increase in our own prowess in technology.”

Sung’s speech was followed by Yoon Young-bin, the inaugural administrator of the Korea AeroSpace Administration (KASA), in the second session, where he discussed the role of KASA and international cooperation in raising Korea’s position in the aerospace market.

Attendees in the top photo: Top row from left, Honduran Ambassador Rodolfo Roberto Pastor Fasquelle, Malaysian Ambassador Mohd Zamruni Khalid, Sierra Leonean Ambassador Kathos Jibao Mattai, Ukrainian Ambassador Dmytro Ponomarenko, Georgian Ambassador Tarash Papaskua, Slovakian Ambassador Marek Repovsky, Mexican Ambassador Carlos Peñafiel Soto, Costa Rican Ambassador Jorge Valerio, Colombian Ambassador Alejandro Peláez Rodríguez, Latvian Ambassador-designate Janis Berzins, Luxembourgish Ambassador Jacques Flies, Congolese Ambassador Atoki Ileka, Jordanian Ambassador Asal Al-Tal, Tunisian Ambassador Kais Darragi and Swedish Charge d'Affaires Johannes Andreasson. Bottom row from left: Algerian Ambassador Mohammed Bensabri, Chairman of the Korea Federation of Banks Cho Yong-byoung, Dominican Republic Ambassador Federico Alberto Cuello Camilo, German Ambassador Georg Schmidt, British Ambassador Colin Crooks, CEO and Publisher of the Korea JoongAng Daily and JoongAng Ilbo Park Chang-hee, Director of National Policy at the presidential office Sung Tae-yoon, Korea AeroSpace Administration Administrator Yoon Young-bin, Philippine Ambassador Theresa Dizon-De Vega, Italian Ambassador Emilia Gatto, Kenyan Ambassador Emmy Jerono Kipsoi, Irish Ambassador Michelle Winthrop and Dutch Ambassador Peter van der Vliet.

BY SARAH CHEA [chea.sarah@joongang.co.kr]