{"id":2203423,"date":"2024-01-12T17:10:47","date_gmt":"2024-01-12T08:10:47","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203423"},"modified":"2024-01-15T18:13:50","modified_gmt":"2024-01-15T09:13:50","slug":"south-koreas-new-focus-on-economic-security-reflects-china-us-trade-concerns","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/01\/south-koreas-new-focus-on-economic-security-reflects-china-us-trade-concerns\/","title":{"rendered":"South Korea\u2019s new focus on economic security reflects China, US trade concerns"},"content":{"rendered":"

South Korea\u2019s addition of a third deputy director to the National Security Office (NSO), focusing on economic security, signals its decision to separate trade strategy from its other diplomatic endeavors.<\/span><\/p>\n

While outwardly addressing Seoul\u2019s trade relations with China, experts told <\/span>Korea Pro<\/span><\/i> that there is a deeper agenda: preparing for possible protectionist shifts in trade policies by the U.S. and Japan.<\/span><\/p>\n

This new position in the NSO, a key decision-making body, marks a clear delineation in the division of responsibilities. Unlike the principal deputy, Kim Tae-hyo, who manages diplomacy, and the second deputy, who is responsible for national defense, this role \u2014 formerly under the \u201cdiplomacy\u201d segment of the office \u2014 zeroes in on economic security, particularly the stability and security of supply chains.<\/span><\/p>\n

Wang Yun-jong, who assumed this role on Thursday, is a seasoned expert in South Korea\u2019s trade with China, and he will likely push for Seoul to reassess its views on its trade dependency on Beijing, traditionally seen as its top trade partner.<\/span><\/p>\n

However, the broader implications of this appointment extend beyond China. There\u2019s a growing awareness in Seoul of the need to fortify against potential trade challenges not just from China but also from long-standing allies like the U.S. and Japan, which may adopt more protectionist trade policies as they face pressure from their respective voters.<\/span><\/p>\n

\"\"

Former U.S. President Donald Trump delivers remarks on the 2018 National Security Strategy in Washington, DC., Dec. 18, 2017 | Image: United States Indo-Pacific Command<\/a><\/em><\/p><\/div>\n

U.S. ECONOMIC SECURITY STRATEGY<\/b><\/p>\n

The evolution of U.S. economic security policy under the Trump and Biden administrations provides a crucial backdrop for understanding South Korea\u2019s recent strategic adjustments. Trump\u2019s America First policy intertwined economic security with national security in a manner that continues to impact global trade dynamics.<\/span><\/p>\n

In Dec. 2017, Trump announced a new <\/span>U.S. national security strategy<\/span><\/a>, formally integrating economic security as one of its four \u201c<\/span>vital national interests<\/span><\/a>\u201d alongside homeland security, military strength and soft power.<\/span><\/p>\n

\u201cAny nation that trades away its prosperity for security will end up losing both,\u201d Trump stated, encapsulating his administration\u2019s approach.<\/span><\/p>\n

South Korean experts and U.S. media outlets, such as the <\/span>New York Times<\/span><\/i>,<\/span><\/a> noted this shift with concern, particularly the potential for sparking \u201cbloc politics in protectionist trade\u201d and mixing economic objectives with security considerations and declaring trade partners, such as Japanese automakers, a \u201cthreat.\u201d<\/span><\/p>\n

\u201cIt was in this context that President Trump, in 2017, began to refer to economic security as a matter of national security due to the U.S.\u2019 deepening reliance on China for imports, which raised concerns,\u201d Won Yeonho, who heads the economic security team at Korea Institute for International Economic Policy (KIEP), told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

While the Biden administration sought to reverse some of Trump\u2019s isolationist policies, he maintained and expanded upon the economic security strategy with initiatives like the CHIPS Act and Inflation Reduction Act (IRA), which have significant implications for South Korean firms, particularly those with operations in China.<\/span><\/p>\n

Think tanks like the <\/span>Council on Foreign Relations<\/span><\/a> have raised concerns about the geopolitical repercussions of this continued America First approach to economic security. Stephen M. Walt, in a <\/span>Foreign Policy<\/span><\/i><\/a> article, likened it to a \u201creturn of the Cold War strategy.\u201d<\/span><\/p>\n

For South Korea, the implications of this U.S. policy shift, regardless of who wins the U.S. presidential election this year, are profound.<\/span><\/p>\n

Seoul\u2019s proactive measure in bolstering its economic security framework \u201cwill put South Korea in a more resilient and less vulnerable position if Donald Trump does once again become president,\u201d Kristin Vekasi, an associate professor of political science at the University of Maine, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\u201cBut diversifying critical supply chains such as minerals, chip supply chains, military supply chains and others is smart policy regardless of the outcome of the U.S. election,\u201d she said. \u201cMuch of the realized industrial policy from the United States was introduced and implemented by Biden.\u201d<\/span><\/p>\n

\"\"

Then-secretary for economic security Wang Yun-jong gives a press briefing, Jan.10, 2024 | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

DEFINING ECONOMIC SECURITY<\/b><\/p>\n

The concept of \u201ceconomic security\u201d is relatively new in South Korea, becoming a recurring theme in Yoon\u2019s economy-related speeches over the past eighteen months. This shift represents a departure from past practices, where trade was largely considered a facet of foreign affairs.<\/span><\/p>\n

This historical viewpoint is exemplified by the structure of the Ministry of Foreign Affairs and Trade, which was in place until its dissolution in 2013. Even within the NSO, trade-related roles were subsumed under diplomatic functions until earlier this week.<\/span><\/p>\n

\u201cTraditionally, the primary objective in trade negotiations, particularly in free trade agreements (FTAs), was to enhance free trade and lower trade barriers,\u201d Choi Won-seok, an associate research fellow at the economic security team at KIEP, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\u201cBut that perspective has shifted. Now, South Korea has started to seriously consider what an increased dependency on trade with China means for the country\u2019s national security,\u201d he explained. \u201cThe focus has moved toward safeguarding supply chains and national security.\u201d<\/span><\/p>\n

Vekasi told <\/span>Korea Pro<\/span><\/i> that this recalibration toward economic security is not unique to South Korea. Other regional governments have also reoriented their approach to trade and security.<\/span><\/p>\n

The use of the term \u201ceconomic security\u2019 in official discourse serves to make the issue appear more \u201cimportant and urgent,\u201d she explained. \u201cThat has been the case in the United States and Japan.\u201d<\/span><\/p>\n

Vekasi further pointed out that while South Korea might be perceived as \u201clate in the game\u201d in formally integrating this concept into its governmental structure, it has already been implementing \u201cmany initiatives and policies that align with those of the U.S. and Japan, such as those related to critical mineral policies.\u201d<\/span><\/p>\n

\"\"

Chinese leader Xi Jinping delivers a speech at the third plenary session of the 20th Central Commission for Discipline Inspection of the Chinese Communist Party, Jan. 8, 2024 | Image: The State Council The People\u2019s Republic of China<\/a><\/em><\/p><\/div>\n

\u2018WEAPONIZING\u2019 SUPPLY CHAINS<\/b><\/p>\n

Within South Korea, the news media has largely interpreted Wang\u2019s appointment as Seoul\u2019s signal to Beijing. This interpretation stems partly from his <\/span>background<\/span><\/a> as a macro-financial analyst and a former director at the SK China Economic Research Institute.<\/span><\/p>\n

Media narratives in South Korea have often <\/span>highlighted<\/span><\/a> Yoon\u2019s apparent endorsement of Wang\u2019s critical stance toward China, particularly his argument that it would be a \u201c<\/span>mirage<\/span><\/a>\u201d to expect Beijing to accommodate South Korean businesses, such as <\/span>Samsung and SK<\/span><\/a>. Wang once described those companies\u2019 semiconductor plants in China as \u201chostages.\u201d\u00a0<\/span><\/p>\n

This perspective has been underscored by Yoon\u2019s commitment to boosting semiconductor exports, a sector vulnerable to geopolitical tensions and economic policies from countries like the U.S., Japan and China.<\/span><\/p>\n

Experts told <\/span>Korea Pro<\/span><\/i> that Wang\u2019s appointment is a strategic move to prepare South Korea against the potential for trade partners to \u201cweaponize\u201d supply chains as leverage in geopolitical disputes.<\/span><\/p>\n

While many once considered market interdependence a \u201cgood\u201d thing that promoted peace, that view has shifted now that a growing number of people view entangled supply chains as potential security threats \u2014 a view that Trump advocated, Won of KIEP explained.<\/span><\/p>\n

\u201cFor instance, countries with control over advanced technology supply chains are increasingly using this influence to pressure other countries to advance their own interests. A notable example of this was seen in 2019 when Japan imposed export restrictions on South Korea,\u201d Won said.<\/span><\/p>\n

\u201cThis situation has developed into one where economic interdependencies are now being weaponized.\u201d<\/span><\/p>\n

Choi of KIEP agreed, adding that \u201cde-risking\u201d in economic security has become a global trend, evident in the E.U. and, to a certain extent, both U.S. Democrats and Republicans.<\/span><\/p>\n

\u201cOver the next decade, we may witness more protectionist trade policies, along with escalating tensions between the U.S. and China. In this context, this week\u2019s reorganization of South Korea\u2019s government is likely a move to proactively prepare for such developments.\u201d<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

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

South Korea\u2019s addition of a third deputy director to the National Security Office (NSO), focusing on economic security, signals its decision to separate trade strategy from its other diplomatic endeavors. While outwardly addressing Seoul\u2019s trade relations with China, experts told Korea Pro that there is a deeper agenda: preparing for possible protectionist shifts in trade […]<\/p>\n","protected":false},"author":10781,"featured_media":2203432,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,26,28],"class_list":["post-2203423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-defense-security","tag-inter-korean-foreign-relations"],"yoast_head":"\nSouth Korea\u2019s new focus on economic security reflects China, US trade concerns - 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\/2024\/01\/south-koreas-new-focus-on-economic-security-reflects-china-us-trade-concerns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea\u2019s new focus on economic security reflects China, US trade concerns - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea\u2019s addition of a third deputy director to the National Security Office (NSO), focusing on economic security, signals its decision to separate trade strategy from its other diplomatic endeavors. 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