ASEAN, India key to Korea's New Southern Policy

Kim Hyun-chul, chairman of the Presidential Committee on New Southern Policy, speaks during the KOR-ASIA Forum 2018 at the Dragon City Hotel in Seoul, Wednesday. / Korea Times photo by Koh Young-kwon

By Jun Ji-hye

ASEAN nations and India are the crux of President Moon Jae-in's New Southern Policy that seeks peace and prosperity in the region beyond the Korean Peninsula and Northeast Asia, according to the head of a presidential committee, Wednesday.

Kim Hyun-chul, who chairs the Presidential Committee on the New Southern Policy, said during the KOR-ASIA Forum 2018 that the government will actively increase trade volume and investments in Southeast Asia, calling it a “massive economic bloc” and “blue ocean.”

“The southern regions are young and dynamic with an average age of 30,” he said. “ASEAN countries and India have emerged as new growth engines for the world economy.”

He noted the average annual growth rate for ASEAN nations was 5.2 percent and that of India was 7 percent in 2017, compared to the world average of 3.76 percent.

The presidential committee was launched on Aug. 28 to enhance economic and other forms of cooperation with the region after President Moon announced the new policy last year. The President proposed the “3P” approach ― promoting people-oriented peace and prosperity.

Kim said the policy calls for substantial cooperation to build a community in which everyone lives comfortably together, saying his committee is playing the role of a control tower in establishing relevant strategies and coordination between ministries.

“Korea's trade with countries in the southern region has increased to 16.1 percent in 2017 from 11.4 percent in 2007,” Kim said. “Direct investment and personal exchanges have increased gradually as well.”

An increasing number of Korean companies such as Samsung Electronics, LG and Doosan have also made inroads into the region, with their investments there reaching $4.06 billion as of 2016, Kim said.

Export items have diversified to include semiconductors, petroleum products and displays.

“The government aims to increase trade volume with ASEAN nations to $200 billion by the end of 2020, and with India to $50 billion by 2030,” Kim said. “Toward that end, the government will strengthen its institutional framework to promote trade and investments, and support small- and medium-sized enterprises' entry into the region.”

He added Korea will also cooperate with countries in the region to enhance capabilities of jointly coping with the threats of terrorism and cyberattacks.

Cooperation with northern nations

Korea is also pushing to expand economic cooperation with Russia, China and other neighboring countries to promote peace and prosperity under the New Northern Policy, another key initiative of the Moon government.

During the KOR-ASIA Forum 2018, Lee Jae-young, president of the Korea Institute for International Economic Policy, said Korea is seeking to pave the way for mutual prosperity with these countries based on peace on the Korean Peninsula.

“Korea needs to play a role as a bridge between continents and oceans,” he said. “The policy aims to develop and tap into emerging markets by, for example, pushing for a free trade agreement with the Eurasian Economic Union (EAEU) in order to diversify export markets.”

Lee said there was a great deal of potential to enhance cooperation with countries in the northern region.

“There is positive outlook for growth in the northern region over the medium to long term,” he said. “The business environment for companies has improved quickly.”

The government will need to work to invigorate cooperation in various areas such as constructing combined logistics networks in Eurasia, Lee said.

“It is also important to advance industrial cooperation to create new growth engines,” he said.