{"id":2199034,"date":"2022-09-26T09:13:52","date_gmt":"2022-09-26T09:13:52","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2199034"},"modified":"2023-04-05T16:11:33","modified_gmt":"2023-04-05T07:11:33","slug":"south-korea-eyes-closer-ties-with-canada-as-it-seeks-to-shore-up-supply-chains","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/09\/south-korea-eyes-closer-ties-with-canada-as-it-seeks-to-shore-up-supply-chains\/","title":{"rendered":"South Korea eyes closer ties with Canada as it seeks to shore up supply chains"},"content":{"rendered":"

South Korean President Yoon Suk-yeol met with Canadian Prime Minister Justin Trudeau in Ottawa last week, discussing ways that the two countries can strengthen their trade relationship and security ties and discussing topics ranging from electric vehicle batteries and critical minerals to supply chains.<\/span><\/p>\n

The summit comes at a critical time for South Korea. Seoul is scrambling to find more trade partners as it faces <\/span>economic<\/span><\/a> uncertainty<\/span><\/a>, and few offer the same potential as Canada. Not only does the country possess rich natural resources that ROK manufacturers use to make semiconductors and a range of other goods, but Seoul and Ottawa are aligned on a range of issues from <\/span>climate exchange<\/span><\/a> to North Korea.<\/span><\/p>\n

There is certainly room to grow. According to the Observatory of Economic Complexity (<\/span>OEC<\/span><\/a>), South Korea\u2019s exports to Canada in 2020 amounted to about $6.49 billion, whereas Canada\u2019s exports to South Korea that same year were around $3.86 billion. By comparison, the recent <\/span>arms deal<\/span><\/a> that South Korea struck with Poland may exceed $15 billion.<\/span><\/p>\n

Working in Canada\u2019s favor is that China does not perceive it as the same military or economic threat as the U.S., meaning outreach efforts likely won\u2019t arouse suspicion or scrutiny in the same way. While Canada is a much smaller market, the private sector can take advantage of the U.S.-Mexico-Canada Agreement (<\/span>USMCA<\/span><\/a>) and the Inflation Reduction Act (<\/span>IRA<\/span><\/a>) to access the U.S. consumer market.<\/span><\/p>\n

South Korean firms are already moving in. For example, LG Energy Solution just signed <\/span>separate partnership agreements<\/span><\/a> with three major critical mineral suppliers in Canada to secure lithium and cobalt \u2014 minerals necessary to produce batteries that can power electric vehicles. LG Energy Solutions and Stellantis have entered into a <\/span>joint venture<\/span><\/a> to construct a $4 billion battery plant in Ontario as well.\u00a0<\/span><\/p>\n

Those agreements are not only a way to help counter U.S. <\/span>tax penalties<\/span><\/a> on foreign-made electric vehicles, but represent a much-needed step toward diversifying South Korea\u2019s supply chain. The ROK accounts for <\/span>almost half<\/span><\/a> of the world\u2019s production of rechargeable batteries. But to produce those batteries, South Korea relies heavily on imported materials \u2014 particularly <\/span>rare earth minerals from China<\/span><\/a> \u2014 which leaves South Korea <\/span>vulnerable<\/span><\/a> to trade tensions in an increasingly volatile region.\u00a0<\/span><\/p>\n

And it\u2019s not just China. South Korea\u2019s other neighbor, Japan, imposed <\/span>export controls<\/span><\/a> on several industrial materials necessary to produce semiconductors and displays. By ensuring alternate supplies, such as from Canada, South Korea can reduce its dependence on China while assuring global markets of its ability to supply batteries.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol and Canadian Prime Minister Justin Trudeau talk at the NATO summit in Madrid in June 2022. | Image: Office of Prime Minister of Canada Justin Trudeau<\/a><\/p><\/div>\n

ARMS COOPERATION<\/b><\/p>\n

Aside from trade, Canada can serve as another critical global partner in maintaining peace on the Korean Peninsula.\u00a0<\/span><\/p>\n

As part of Ottawa\u2019s <\/span>Operation NEON<\/span><\/a>, the HMCS Vancouver and two aircraft have begun <\/span>operations in the Indo-Pacific<\/span><\/a> to counter illicit maritime activities that support North Korea\u2019s weapons of mass destruction programs. These maritime operations are part of Canadian efforts to enforce economic sanctions imposed on North Korea, as Pyongyang leans on illicit <\/span>ship-to-ship transfers<\/span><\/a> to breach U.N.-set oil caps.\u00a0<\/span><\/p>\n

Further, after jointly condemning the Russian invasion of Ukraine and reaffirming their support for Ukraine, Yoon and Trudeau will be able to discuss Ottawa\u2019s earlier <\/span>request<\/span><\/a> to supply more artillery rounds.\u00a0<\/span><\/p>\n

The Canadian government provided Kyiv with <\/span>20,000 artillery shells<\/span><\/a> and $6.7 million worth of replacement barrels for the M-777 howitzers, and afterward, it reached out to Seoul for more artillery.<\/span><\/p>\n

South Korea is a significant manufacturer of 155-millimeter ammunition since it operates K9 self-propelled howitzers, which it exports to a <\/span>growing<\/span><\/a> list<\/span><\/a> of<\/span><\/a> countries<\/span><\/a>. While Seoul has thus far <\/span>refused to send<\/span><\/a> lethal aid to Ukraine, the massive arms deal with Poland \u2014 the same country that has provided Ukraine with weapons <\/span>worth $1.6 billion<\/span><\/a> \u2014 may make Seoul less hesitant to provide artillery shells to Ottawa.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol and First Lady Kim Keon-hee bid farewell before departing for their three-nation trip in Sept. 2022. | Image: Republic of Korea via Flickr<\/a> (CC BY-SA 2.0<\/a>)<\/span><\/p><\/div>\n

TRIPPING UP<\/b><\/p>\n

Though upsides abound, the South Korean president may be the biggest obstacle to improving ties with Canada \u2014 at least at first.\u00a0<\/span><\/p>\n

Yoon Suk-yeol, who had no experience in politics or international affairs prior to his election this year, has made <\/span>grandiose promises<\/span><\/a> to entirely reshape South Korea\u2019s foreign policy. But <\/span>domestic scandals<\/span><\/a> and a penchant for <\/span>poor communication<\/span><\/a> have eroded much of the South Korean public\u2019s trust in his administration.<\/span><\/p>\n

Just last week, Yoon was <\/span>overheard<\/span><\/a> insulting American lawmakers in a profanity-laced statement after a <\/span>less than one-minute chat<\/span><\/a> with U.S. President Joe Biden, as Seoul seeks changes to a <\/span>U.S. law<\/span><\/a> that prevents Korean carmakers from receiving electric vehicle subsidies.\u00a0<\/span><\/p>\n

The careless remark could potentially cost South Korea goodwill on Capitol Hill and by extension Ottawa. If the president says that sort of thing about South Korea\u2019s most critical ally, what does he say in private?<\/span><\/p>\n

South Korea and Canada have much to benefit from improved relations \u2014 economically and militarily. However, it is unclear if the Yoon administration should be the one to spearhead efforts to achieve this. Seoul may be the most successful by just staying out of the way and letting the private sector take the lead in relations with Ottawa.<\/span><\/p>\n

Edited by Arius Derr<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korean President Yoon Suk-yeol met with Canadian Prime Minister Justin Trudeau in Ottawa last week, discussing ways that the two countries can strengthen their trade relationship and security ties and discussing topics ranging from electric vehicle batteries and critical minerals to supply chains. The summit comes at a critical time for South Korea. Seoul […]<\/p>\n","protected":false},"author":10207,"featured_media":2199037,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,27,28],"class_list":["post-2199034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-domestic-politics","tag-inter-korean-foreign-relations"],"yoast_head":"\nSouth Korea eyes closer ties with Canada as it seeks to shore up supply chains - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/09\/south-korea-eyes-closer-ties-with-canada-as-it-seeks-to-shore-up-supply-chains\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea eyes closer ties with Canada as it seeks to shore up supply chains - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korean President Yoon Suk-yeol met with Canadian Prime Minister Justin Trudeau in Ottawa last week, discussing ways that the two countries can strengthen their trade relationship and security ties and discussing topics ranging from electric vehicle batteries and critical minerals to supply chains. 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