The Economic Pillar of Korea’s New Southern Policy: Building on Existing Assets
Diversification is a key tenet of South Korea’s New Southern Policy (NSP). In the economic sphere, however, the need for diversification is apparently less pressing as, unlike what is observed in the diplomatic and security domains, Korea’s economic partnerships are less unbalanced and are not (or not as clearly) polarized on the big Four (China, Japan, the United States, and Russia).
Although Korea’s economic relations with its “South” – Association of Southeast Asian Nations (ASEAN) and India – seem to be relatively strong already, there is still scope for further development. First, heavy Korean economic involvement in ASEAN is heavily skewed towards Vietnam. Secondly, India remains a marginal economic partner for Korea and may be deemed the weak pillar in its economic strategy so far. Thirdly, except through Official Development Assistance (ODA), the role of the government has remained limited so far in supporting the expansion of economic links between Korea and ASEAN, and to a lesser extent India.
The key question is to determine what the added value of the NSP can be beyond existing private sector-based economic relations. Through the NSP the Korean government provides financial support to facilitate the expansion of private companies’ activities in Korea’s “South”, in particular in sectors in which they would not necessarily engage on their own. The diversification objective of the NSP’s economic pillar is thus not only geographical but also sectoral. The focus is placed on infrastructure development projects in ASEAN and India, and more specifically on niche activities such as smart-city projects.
In addition to such financial support, the Korean government has opted for indirect support through the negotiation and implementation of various trading arrangements – Free Trade Agreements (FTAs) or Comprehensive Economic Partnership Agreements (CEPAs) – including the recently concluded Regional Comprehensive Economic Partnership (RCEP).
The chance of success of the NSP can be deemed relatively high as it does not start from scratch and as Korean private companies’ and government’s interests dovetail quite nicely. Moreover, Korea’s focus on infrastructure is aligned with the recipient countries’ interests, in particular ASEAN’s. However, a major weakness of the strategy is the absence of a powerful and convincing narrative to go with it, which makes Korea’s endeavor less attractive for its potential partners. But, of course, this weakness goes beyond the economic dimension of the NSP and would need to be addressed at a more general level.
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
The Economic Pillar of Korea’s New Southern Policy: Building on Existing Assets
Center for Asian Studies
Asia is a nerve center for multiple global economic, political and security challenges. The Center for Asian Studies provides documented expertise and a platform for discussion on Asian issues to accompany decision makers and explain and contextualize developments in the region for the sake of a larger public dialogue.
The Center's research is organized along two major axes: relations between Asia's major powers and the rest of the world; and internal economic and social dynamics of Asian countries. The Center's research focuses primarily on China, Japan, India, Taiwan and the Indo-Pacific, but also covers Southeast Asia, the Korean peninsula and the Pacific Islands.
The Centre for Asian Studies maintains close institutional links with counterpart research institutes in Europe and Asia, and its researchers regularly carry out fieldwork in the region.
The Center organizes closed-door roundtables, expert-level seminars and a number of public events, including an Annual Conference, that welcome experts from Asia, Europe and the United States. The work of Center’s researchers, as well as that of their partners, is regularly published in the Center’s electronic journal Asie.Visions.
China as an ambivalent supporter of the WTO and the multilateral trading system
Amid rising trade tensions between Europe and China and broader uncertainty in the international rules-based trade regime, Beijing has worked to preserve and bolster the multilateral trading system while at the same time failing to reform the domestic policies that have served to undermine that same system.
Pakistan and the Israel-Palestine Conflict: Transformation in Pakistan’s Approach After the War in Gaza
Pakistan has long combined vocal support for the Palestinian cause with covert engagement with Israel. Since the war in Gaza, this balance has become untenable: public opinion is united against Israel, joining Trump’s Board of Peace has drawn rare cross-party criticism, and new regional alignments put normalization out of reach.
The Oceania Factor in France’s Evolving Indo-Pacific Strategy
This paper examines the two-way relationship between France’s Indo-Pacific strategy and developments in Oceania. Oceania was not a priority in the initial years of France’s Indo-Pacific strategy, as the region was largely treated as secondary to major strategic hotspots and key partnerships, while overseas territories were primarily handled as domestic issues and recipients of a top-down strategy.
France’s View: From Diplomacy to Public-Private Action
France has emerged as the EU’s IMEC forerunner, combining port infrastructure, diplomatic alliances and public-private cooperation. With Marseille Fos at its core, the country brings a strategic hub for logistics, energy and digital connectivity to the corridor.