Challenges & Opportunities to the ASEAN-ROK Relations

Suh Jeong-in Ambassador

Mission of the Republic of Korea to ASEAN

27 March 2017, London School of Public Relations (L- SPR)

Jakarta, Indonesia

Challenges & Opportunities to the

ASEAN-ROK Relations

▣ ASEAN: Past, Present & Future

 Milestones

 Miracle

 Accomplishments

 Potentials

▣ ASEAN-Korea: Strategic Partners

 Milestones

 Economic Cooperation

 People-to-People Exchanges

 Shared Future: 3SPs

Table of Contents

ASEAN Milestones

08.1967 Bangkok Declaration to create ASEAN (6 Southeast Asian Nations)

- Brunei(1984); Vietnam(1995); Lao & Myanmar(1997); Cambodia(1999)

02.1976 Treaty of Amity & Cooperation in Southeast Asia

- “… the key code of conduct governing relations between states…”

※ ROK accession in 2004

01.1992 ASEAN Free Trade Area

07.1994 ASEAN Regional Forum (ARF)

12.1997 Adoption of 『 ASEAN Vision 2020 』

- Beginning of ASEAN’s endeavor for a Community building process 12.1997 ASEAN Plus 3 (ROK, China, Japan)

12.2005 East Asia Summit (EAS)

- ASEAN+8(AU, CH, IN, JP, NZ, ROK, RU, US)

12.2008 ASEAN Charter

- Institutionalization of ASEAN; legal personality of ASEAN

12.2015 Launch of ASEAN Community; Adoption of 『 ASEAN Vision 2025 』

- 3 Communities: APSC, AEC, ASCC

08.2017 50^th Anniversary of ASEAN’s Establishment

 3 Factors of ASEAN Miracle

 Fear: communist expansion

 Luck

 Geopolitical alliance of US-China in order to deal with Vietnam’s occupation of Cambodia

 Strong leaders

※ Suharto, Mahathir, Lee Kuan Yew…

 Golf

 Sense of camaraderie among leaders

 Kishore Mahbubani (a regionally well-kno wn opinion leader on ASEAN): “It has tak en the most improbable region on planet Earth for regional cooperation and made it one of the most peaceful regions in the world.”

→“ASEAN deserves Nobel Peace Prize in 2017.”

ASEAN Miracle

 Peace & Security

 ASEAN Member States (AMS): no major wars among AMS

 Pursuing Rule-based order in the region & around the world

 Economy

 AFTA in 1992: the beginning of ASEAN Economic Community (AEC)

 ASEAN’s GDP in 1990 (US$ 400 billion) in → 2014 (US$ 2.6 trillion):

6.5 times increases

 Per capita income comparison: in ‘67 Indonesia(US$ 274), Brazil(US$ 1,902), Nigeria(US

$484) → in ‘14 Indonesia(US$1,853), Brazil(US$5,881), Nigeria(US$1,098)

 ASEAN: 7^th largest economy in the world (US$ 2.6 trillion), 3^rd largest in Asia (①China, ②Japan)

 Foreign Direct Investment(FDI) to ASEAN in 2013 higher than China

 FDI inflow: ASEAN (US$ 128 billion) & China (US$ 123 billion)

 Socio-Cultural

 Literary rates: more than 90%

 % of people living under US$ 1.25: from 1 in 2 to 1 in 8 persons in last 20 years

ASEAN: Accomplishments

 ASEAN’s Bright Future ahead

 ASEAN’s aspiration & Next frontier of global economic growth

 By 2030, reaching the region’s average real per capita GDP to US$10,000 (ADBI’s Report)

 From 2014 onward, ASEAN’s annual GDP growth: Higher than 4.5%

 Growth of middle class

 By 2020, more than 60 million people will be known as new ASEAN consumers (Accent ure Strategy’s Report)

 Innovative technology

 Potential developments of mobile, internet, clouding, IoT, AI, etc. (ADBI’s Report)

※ By 2030, expected to create the added values from US$ 220 billion to US$ 625 billion

 Urbanization in ASEAN

 Expansion of more affluent cities around AMS (other than Tier 1 cities like JKT, BKK, S G) (Accenture Strategy’s Report)

※ Annual growth of urban population: 6 million(size of total population in Singapore)

※ ASEAN Vision 2025

 ASEAN’s determination to accomplish its potentials for the future

 ASEAN’s determination to complete the ASEAN Community by 2025

ASEAN: Potentials

ASEAN-ROK: Strategic Partners

ASEAN-ROK Milestones

Nov, 89 Sectoral Dialogue Partnership Nov, 91 Full Dialogue Partnership

- Launch of ASEAN-Korea Cooperation Fund (AKCF)

Dec, 97 1^st ASEAN-ROK Summit / ASEAN+3 Summit

Nov, 04 ASEAN-ROK Comprehensive Cooperation Partnership Dec, 07 ASEAN-ROK Free Trade Agreement (AKFTA)

Mar, 09 Establishing ASEAN-Korea Center (AKC)

Jun, 09 ASEAN-ROK Commemorative Summit (20^th Anniversary) Oct, 10 ASEAN-ROK Strategic Partnership

Sep, 12 Establishing the Mission of ROK to ASEAN in Jakarta Dec, 14 ASEAN-ROK Commemorative Summit (25^th Anniversary) Sep, 17 Opening of ASEAN Culture House in Busan, ROK

- ROK: 1^st Dialogue Partner to open a dedicated ASEAN Culture House

ASEAN-Korea Economic Cooperation

[ASEAN-Korea Trade] [Korea’s Investment to ASEAN]

2005: US$ 53 billion 2015: US$ 120 billion☞ (2.3 times growth)

Korea to ASEAN: 5^th largest trading partner ASEAN to Korea: 2^nd largest trading partner

2005: US$ 752 million 2015: US$ 4.2 billion☞ (5.5 times growth)

ASEAN: Korea’s 2^nd highest FDI destination

8,000 Korean Companies (creating 1.8 million jobs)

ASEAN-Korea People-to-People Exchange(1)

ASEAN-Korea People-to-People Exchange(2)

ASEAN-Korea People-to-People Exchange(3)

12,176 Students from ASEAN in 2015

 Shared Peace

 Cooperation on non-traditional security issues (Climate change, Disaster management, Cyber security, etc.)

 North Korea’s nuclear and missile threats

 South China Sea: at the heart of the major global sea line of communicat ion

 Shared Prosperity

 Upgrading ASEAN-Korea Free Trade Agreement(AKFTA)

 Backbone of ASEAN-Korea economic cooperation

※ (2007) AKFTA Trade in Goods Agreement; (2009) AKFTA Trade in Services Agreement;

(2009) AKFTA Investment Agreement

 Early conclusion of the Regional Comprehensive Economic Partnership(R CEP)

 By 2020, targeting trade volume of US$ 200 billion

 Shared Progress

 ASEAN-Korea Cooperation Fund(AKCF)

 Enhancing mutual understanding of ASEAN and Korea

 Ensuring the continuation of P2P exchanges between ASEAN and Korea

 ASEAN Culture House in Busan

 Raising Korea’s awareness on ASEAN’s cultural diversity

ASEAN-Korea Cooperation: the Shared Future(3SPs)

ASEAN Culture House in Busan

 ASEAN Culture House in Busan to be opened in September 1, 2017

 4 ground floors & 2 basement floors

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