SOUTH KOREA-ASEAN RELATIONS: CONTRIBUTING TOWARDS A STRONGER ASEAN COMMUNITY.
9th International Conference on
Malaysia-Indonesia Relations (PAHMI 9)
Faculty Of Social Sciences
Yogyakarta State University, 15-16 September 2015
SOUTH KOREA-ASEAN RELATIONS:
CONTRIBUTING TOWARDS A STRONGER ASEAN COMMUNITY
Geetha Govindasamy
Department of East Asian Studies
Faculty of Arts and Social Sciences
University of Malaya
50603, Kuala Lumpur Malaysia
Tel: +603 79675631
Fax: +60379675675
geethag@um.edu.my
ABSTRACT
One of the main obstacles in building an ASEAN Community relates to the huge gaps in the levels of
economic and infrastructure development that exists between older and newer member countries of ASEAN. The
paper argues that the construction of an ASEAN Community demands a multilateral approach. ASEAN is doing this
by establishing stronger ties with middle powers in the region. The paper is a preliminary consideration of issues
relating to the relationship between South Korea and ASEAN. It provides a country level exploration of the extent to
which South Korea facilitates the strengthening of the ASEAN Community in various sectors. South Korea, which
prides itself as a middle power, has played a significant role in strengthening ASEAN’s internal and regional
economic and social integration. Both parties are already involved in four significant frameworks namely the
Framework Agreement on Comprehensive Economic Cooperation, ASEAN Plus Three Cooperation, East Asia
Summit and the Regional Comprehensive Economic Partnership (RCEP). Economically, the combination of South
Korea’s technology and ASEAN’s natural resources have seen two way investments and trade linkages rise
significantly. Further, in order to reduce the gap between the older and newer ASEAN member countries, 30% of
Korea’s official development assistance is being channeled to ASEAN. Understanding that the development of the
Mekong region is imperative in achieving the goal of an ASEAN Community, South Korea signed the Han River
Declaration to aid in increasing ASEAN connectivity, improving sustainable development and promoting people - to
people oriented development. In sum, the paper serves as a reminder that the creation of an ASEAN Community
requires some outside assistance and expertise.
Keywords: South Korea, ASEAN, community building, middle power diplomacy, development gap
Theme: International Relations
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
1
1
Introduction
It is important to note while the Association of Southeast Asian Nations (ASEAN) started
looking inwards during its formative years in order to avoid the region from becoming embroiled
in the Cold War conflict, in the middle of the 1970s, with growing confidence of its existence,
ASEAN began attracting much more external attention and involvement. Such external
engagements with ASEAN were designed to “secure technical assistant for regional cooperation
projects; promote trade and economic relations; and strengthen political relations with third
countries and regional groupings.”1 A case in point is ASEAN’s relations with South Korea.
South Korea and ASEAN (the Association of Southeast Asian Nations) established
sectoral dialogue relations in November 1989. South Korea became a full dialogue partner in
1991 and the partnership was elevated to summit level in 1997 and strategic partnership in 2010.
Establishment of relations allowed for recognition of each other’s existence. However, South
Korea nor ASEAN took the relationship seriously as they had contrasting agendas. While
ASEAN was keen in being closer to its East Asian neighbours, South Korea preferred to
strengthen its relations with the United States due to economic and security considerations.
However, the 1997/1998 Asian financial/currency crisis changed the outlook of South
Korea towards its southern neighbours. Like China and Japan, South Korea which was badly
affected by the financial crisis began to take ASEAN seriously in the context of regional
integration and protectionism. The financial crisis elevated ASEAN as a facilitator for deeper
integration of an East Asian community. Though today, the building of an ASEAN community is
discussed widely and is in vogue among scholars, the contribution and involvement of external
partners like Japan, China and South Korea is hardly mentioned in mainstream academic
discussions.
For South Korea, ASEAN is its second largest trading partner and third biggest
investment destination. As a donor country, 30 percent of South Korea’s development assistance
is directed towards ASEAN.2 The paper explores the dynamic relationship between South Korea
and ASEAN in the context of building an ASEAN community, on one hand, with a view towards
narrowing the development gap between the older and newer ASEAN member countries, and on
the other hand, to showcase South Korea’s role as a middle power.
1
S. Pushpanathan (2003), “ASEAN’s Strategy Towards Its Dialogue Partners and ASEAN Plus Three Process.” Retrieved from
http://www.asean.org/resources/item/asean-s-strategy-towards-its-dialogue-partners-and-asean-plus-three-process-by-s-pushpanathan.
Accessed on 12 August 2015.
2
Guen Hye, Park (13 December 2014), “A Shared Vision for the future of ASEAN and South Korea,” Straits Times.
Retrieved from http://news.asiaone.com/news/asian-opinions/shared-vision-future-south-korea-andasean#sthash.bejflphs.dpuf
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
2
2
Narrowing the Development Gap and the Principle of “Prosper Thy
Neighbour"3
According to the International Monetary Fund estimates, there is a striking difference in the
gross domestic product (GDP) between older and newer members of ASEAN (see Table 1).The
differences in GDP are due to a variety of factors, some of which include income, human
development and income gaps.
Table 1: ASEAN Countries’ Gross Domestic Product
GDP
Nominal GDP
millions
of per
USD
USD
Countr
y
Population
in millions
ASEAN
633.35 100.0 2,305,542 100.0 3,745
Nominal GDP
capita millions
USD
(PPP) GDP
of per
USD
(PPP)
capita
100.0
3,605,602 100.0 5,857
100.0
85.0
Indonesia 244.47 39.7
878,198
38.1
3,592
95.9
1,216,738 33.7
4,977
Thailand
75.2
10.5
365,564
15.9
5,678
151.6
651,856
18.1
10,126 172.9
Malaysia
30.89
4.8
303,527
13.2
10,304 275.1
498,477
13.8
16,922 288.9
Singapore 6.9
0.9
276,520
12.0
51,162 1,366.1 326,506
9.1
60,410 1,031.4
Philippine
102.8
s
15.6
250,436
10.9
2,614
69.8
424,355
11.8
4,430
75.6
Vietnam
90.39
14.7
138,071
6.0
1,528
40.8
320,677
8.9
3,548
60.6
Myanmar 60.67
10.3
53,140
2.3
835
22.3
89,461
2.5
1,405
24.0
Brunei
0.1
16,628
0.7
41,703 1,113.5 21,687
0.6
54,389 928.6
2.5
14,241
0.6
934
1.0
2,402
0.40
Cambodia 15.25
24.9
36,645
41.0
Laos
6.38
1.0
9,217
0.4
1,446 38.6
19,200
0.5
3,011 51.4
Source: List of ASEAN countries GDP, International Monetary Fund 2014 estimates,
https://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_(nominal)
The end goal of ASEAN is equal partnership among its members that leads to community
building in one form or another. Normally, community integration is usually aimed at building an
equitable economic development across member countries of a particular region. ASEAN
member countries face major challenges in building an integrated ASEAN Community due to
many disparities in terms of differing levels of economic developments, political systems and
3
“Leaders to Launch Prosper Thy Neighbor Initiative,” 26 November 2000, New Straits Times. Retrieved from
https://news.google.com/newspapers?
nid=1309&dat=20001126&id=h1NIAAAAIBAJ&sjid=ThQEAAAAIBAJ&pg=5522,6333049&hl=en. Accessed on
21 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
3
investment strategies.4 Southeast Asian governments have no choice but to overcome such
disparities in order to move towards meaningful integration of an ASEAN Economic Community
in particular and an ASEAN Community in general. Such community building requires
enhancement of information, technology, financial capacity and human resource development
among member countries. This means the promotion of regional development cooperation and
expanding assistance for weaker economies within ASEAN is crucial in order to forge and
accelerate the integration of ASEAN.
Relying on the principle of “Prosper Thy Neighbour” and in so doing “Prosper ASEAN,”
as espoused by Dr. Mahathir Muhammad, the then Prime Minister of Malaysia, Southeast Asian
leaders doubled their efforts not only to build up regional cooperation but also seek assistance
from external sources to pursue greater social and economic integration. Among many of
ASEAN’s strategies, the Initiative for ASEAN Integration (IAI) is of particular significance as it
targets developing education levels, skills development and training workers of lesser developed
ASEAN member countries. In 2000, ASEAN launched the IAI with a view to Narrowing the
Development Gap (NDG) between older (ASEAN 6) and newer member countries (namely
Cambodia, Lao PDR, Myanmar, and Vietnam). 5 Internally, the IAI, was implemented to
accelerate the economic development of Cambodia, Laos and Vietnam with the help of the more
developed ASEAN 6 members. External dialogue partners like the European Union, Australia,
China, Japan and South Korea equally continue to play a role in narrowing the development gap
in ASEAN.
3
South Korea’s Role in Narrowing the Development Gap in ASEAN
South Korea, which prides itself as a middle power, has played a significant role in
strengthening ASEAN’s regional economic and social integration. Both parties are already
involved in four significant frameworks namely the Framework Agreement on Comprehensive
Economic Cooperation, ASEAN Plus Three Cooperation, East Asia Summit and the Regional
Comprehensive Economic Partnership (RCEP).
As a prime example of external involvement in the IAI projects, to narrow ASEAN’s
economic and digital disparities, South Korea offered training programmes in human resource
development and information technology.6 Thus far, South Korea has steadily concentrated 30
4
OECD (2013), "Overview of Development Gaps in Southeast Asia: Gaps between ASEAN -6 and CLMV
Countries", in OECD, Southeast Asian Economic Outlook 2013: With Perspectives on China and India, OECD
Publishing, Paris.
5
ASEAN Secretariat (2015), “Initiative for ASEAN Integration (IAI) and Narrowing the Development Gap
(NDG).” Retrieved from
http://www.asean.org/communities/asean-economic-community/category/initiative-for-asean-integration-andnarrowing-the-development-gap. Accessed on 26 August 2015.
6
ASEAN Secretariat (25 November 2000), “Press Statement for the Fourth ASEAN Informal Summit,”
Singapore. Retrieved from http://www.asean.org/news/item/the-fourth-asean-informal-summit-22-25november-2000-singapore. Accessed on 12 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
4
per cent of its total official development assistance in the ASEAN region. 7 The ASEAN-ROK
Cooperation Fund, established in 1990, operates with an annual budget of USD 5 million serves
to fund developmental projects dealing with technology transfer, human resource development,
people to people exchanges, and exchanges of intellectuals between Korea and ASEAN. For the
IAI projects planned between 2003 and 2017, South Korea has committed to contribute close to
USD 15 million. For instance, between 2008 and 2012, South Korea concentrated on
strengthening the CLMV capacity for the ASEAN-ROK Cyber University project and initiated a
multi-purpose rainwater management project for countries bordering the Mekong River.8
Understanding that the development of the Mekong region is imperative in achieving the
goal of an ASEAN Community, South Korea signed the Han River Declaration in 2011 to aid in
increasing ASEAN connectivity, improving sustainable development and promoting people - to
people oriented development. Apart from the water resource management, the priority areas for
developing the Mekong region include ICT, green growth, agriculture development as well as
human resource development. Hence, it was not surprising that in July 2014, the CLMV, Thai
and Korean foreign ministers adopted a 2014-2017 Action Plan and agreed upon the the use of
the Mekong-Republic of Korea Cooperation Fund to expand cooperation. According to the
Vietnamese Deputy Foreign Minister, Bui Thanh Son,
First, we increase connectivity among Mekong sub-region countries in
the areas of transport infrastructure, forwarding and energy to boost
regional economic integration. Second, we focus on projects in the
common value chain of Mekong sub-region countries to make the most
of their potentials in manufacturing, agricultural processing, and green
growth. Third, we enhance the public-private partnership to effectively
engage enterprises in the Mekong-ROK cooperation.9
Recently a journalist observed that “ASEAN is the secret weapon of Korea’s foreign policy.”
Since development projects are greatly in demand in the CLMV countries and the Mekong
region has tremendous potential, Korea believes its economic development experience can serve
to strengthen ASEAN economy as the next growth engine for the world economy. 10 If and when
7
Guen Hye, Park (13 December 2014), “A Shared Vision for the Future of ASEAN and South Korea,” Straits
Times. Retrieved from http://news.asiaone.com/news/asian-opinions/shared-vision-future-south-korea-andasean#sthash.bejflphs.dpuf. Accessed on 20 August 2015.
8
ASEAN Secretariat (2015), “ASEAN-Republic of Korea Dialogue Relations.” Retrieved from
http://www.asean.org/news/item/asean-republic-of-korea-dialogue-relations. Accessed on 12 August 2015.
9
“Vietnam Enhances Mekong-ROK Cooperation,” (July 30, 2014), Vietnam Breaking News. Retrieved from
http://www.vietnambreakingnews.com/2014/07/vietnam-enhances-mekong-rok-cooperation/. Accessed on 2 August
2015.
10
Yun Byung-se, (July 29, 2014) Minister of Foreign Affairs, Republic of Korea, “Opening Remarks at the 4th
Mekong-Korea Foreign Ministers’ Meeting.” Retrieved from
http://www.mofa.go.kr/webmodule/htsboard/template/read/engreadboard.jsp?
typeID=12&boardid=14137&seqno=314089&c=&t=&pagenum=1&tableName=TYPE_ENGLISH&pc=&dc=&wc
=&lu=&vu=&iu=&du=. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
5
ASEAN becomes a common market, it is believed that the Mekong region will play a huge role
in opening up opportunities for regional and foreign investors including the Republic of Korea.
Strengthening the Mekong region inexorably supports in further integrating the CLMV members
into ASEAN which in the long run will allow for a successful building of a community.
4
South Korea, ASEAN and Middle Power diplomacy
As mentioned above, while community building is the ultimate goal, ASEAN as an
organization faces some challenges in narrowing the development gap that exists between the
ASEAN 6 and CLMV countries. Overcoming these challenges requires regional as well as
international collaborations. Within this context, a middle power like South Korea has the ability
to accelerate consensus building, supply funds and mobilize cooperation in order to generate
more robust growth. According to South Korea’s Vice Minister of Foreign Affairs and Trade,
Kim Sung Han,
Middle powers are medium-size states with the capability and
willingness to employ proactive diplomacy with global visions. Their
policies fulfill their respective interests but also benefit the world.
Middle powers promote new visions and creative ideas that are
acceptable to both their domestic constituencies and other states. They
are also willing to make the necessary contributions to materialize such
visions.11
Under the pretext of “contribution diplomacy,” the government of President Lee Myung
Bak focused on development cooperation as a vital component in promoting South Korea’s
middle power diplomacy.12 Subsequently the Park Geun-hye government which emphasizes
development cooperation and security, launched its “middle power diplomacy” together with the
Peace Process of the Korean Peninsula and the Northeast Asia Peace and Cooperation Initiative.
In line with this, South Korea which is a developed country with an advanced economy
has actively demonstrated its middle-power diplomacy in ASEAN through its leadership and
contributions in developmental cooperation. As Kim notes, middle powers seek relationships that
are mutually beneficial. Seoul’s main interests is in gaining access to resources in Southeast Asia
as well as support for its security policies concerning North Korea. Similarly, by strengthening
its relationship with South Korea, ASEAN leaders have much more to gain. As the main
objective is to reduce the developmental gap in ASEAN, Southeast Asian leaders have taken full
advantage of South Korea’s transformation from an aid recipient to a donor. Korea’s past
experience of rising from the ruins of the 1950-53 Korean War to become a major economic
11
Sung Han, Kim (February 2013), “Global Governance and Middle Powers: South Korea’s Role in the G20,
Council of Foreign Relations.” Retrieved from http://www.cfr.org/south-korea/global-governance-middlepowers-south-koreas-role-g20/p30062. Accessed on 6 August 2015.
12
Seungjoo Lee, (February 2015), “Policy Recommendation for South Korea’s Middle Power Diplomacy:
Development Cooperation,” EAI Middle Power Diplomacy Initiative Policy Recommendation 4, East Asia Institute,
Seoul, Korea, pg 2.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
6
powerhouse is a valuable lesson, in particular for the CLMV states. 13 At the same time, ASEAN
perceives that this relationship will help the organization progress from being a mere regional
economy to a global economic powerhouse.
Furthermore, South Korea – ASEAN partnership is expected to create more balance
within the Asian region which is dominated by China’s aggressive behaviour and the United
States’ pivot to Asia policy. Within this context, President Park Guen Hye spoke at length about
the creation of an “East Asian Economic Community” at the 2014 ASEAN-South Korea
commemorative summit in Busan, South Korea. The Park government expects the proposed
Regional Comprehensive Economic Partnership (RCEP) to be the backbone of an East Asian
Community. The RCEP involves negotiations between the 10 ASEAN member nations and six
free trade agreement (FTA) partners, namely Australia, China, India, Japan, New Zealand and
South Korea. Its objective is to forge closer economic integration by removing barriers to trade
and investments. If successful, the RCEP which accounts for almost 30 per cent of the world’s
gross domestic product (GDP) will be potentially the world's largest trade agreement. 14
According to Yoon Sukjoon, Senior Research Fellow at the Korea Institute for Maritime
Strategy, middle players like South Korea and ASEAN who are geo-strategically important can
be conduits to building an “Asian Security Community” grounded on common economic
interdependence. Further, Yoon highlights that,
Two-way trade between ASEAN and South Korea went from US$8.2
billion in 1989 to US$135 billion in 2013. ASEAN has rich natural
resources and an increasingly educated labour force while South Korea
can provide technology and manufacturing investment. Even more
important than these economic interactions is the vision shared by
ASEAN and South Korea for an Asian Community comparable with the
European Union but with values based on the "Asian Way”.15
ASEAN has always diversified its economic interactions with a variety of partners. South
Korea’s increasing trade and investment as well as financial contributions into ASEAN certainly
provides the impetus for narrowing the developing gap present between member countries. By
the same token, ASEAN offers tremendous opportunities for South Korean businesses, especially
small and medium sized companies that have thus far focused their attention on China. ASEAN
has a population of 640 million and a GDP of USD3 trillion and is resource rich. On the other
hand, South Korea relies heavily on importing raw materials and energy supplies. The CLMV
13
“Development Cooperation: Korea needs to make contributions more strategically,” May 14, 2015), Korea
Herald. Retrieved from http://www.koreaherald.com/view.php?ud=20150514000651. Accessed on 12 August
2015.
14
Sumisha Naidu, (24 August 2015), “ASEAN, Partners Make 'Historic' Progress on RCEP,”
Channel News Asia. Retrieved from http://www.channelnewsasia.com/news/asiapacific/asean-partnersmake/2073038.html. Accessed on 21 August 2015.
15
Sukjoon Yoon, “ASEAN-Korea Commemorative Summit 2014: Towards an “Asian Community”?” Retrieved
from http://www.rsis.edu.sg/wp-content/uploads/2014/12/C014251.pdf. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
7
countries lower labor costs is another attractive feature to consider for Korean manufacturing
companies that want to manufacture products cheaply for export to third country markets. With
the Chinese economy slowing down, it is only logical that these companies now invest more in
ASEAN. Seen in this context, Park’s government’s expectation of the RCEP being the backbone
for an East Asian Economic Community is not implausible. In other words, South Korea and
ASEAN can build a bridge to an dynamic Asian community than spans from East Asia to
Southeast Asia with partnerships with the rest of the world.
5
Conclusion
The paper serves as a reminder that the creation of an ASEAN Community requires some
outside assistance and expertise. South Korea, as an external partner of ASEAN for more than
two decades has increasingly played an important role in the development of community
building in the Asia Pacific region. Historically, Korean leaders have intermittently looked
towards building networks in the Southeast Asian region, starting with the Asia Pacific Council
(ASPAC), Pacific Basin Economic Council (PBEC), Asia Pacific Economic Cooperation
(APEC), The ASEAN Regional Forum (ARF), ASEAN + 3 and the East Asian Community
(EAS).16 In contemporary times, South Korea’s middle power role has coincided with ASEAN’s
objective of creating an ASEAN Community. Facing challenges due to differing development
status between the ASEAN 6 and the CLMV countries, the South Korea-ASEAN partnership has
potential not only to reduce the developmental gap in order to create an Asian/ASEAN
Community but also to initiate an alternative future global economic entity.
References
ASEAN Secretariat (25 November 2000), “Press Statement for the Fourth ASEAN Informal
Summit,” Singapore. Retrieved from http://www.asean.org/news/item/the-fourth-asean-informalsummit-22-25-november-2000-singapore. Accessed on 12 August 2015.
ASEAN Secretariat (2015), “Initiative for ASEAN Integration (IAI) and Narrowing the
Development Gap (NDG).” Retrieved from
http://www.asean.org/communities/asean-economic-community/category/initiative-for-aseanintegration-and-narrowing-the-development-gap. Accessed on 26 August 2015.
ASEAN Secretariat (2015), “ASEAN-Republic of Korea Dialogue Relations.” Retrieved from
http://www.asean.org/news/item/asean-republic-of-korea-dialogue-relations. Accessed on 12
August 2015.
Bridges, Brian (2014) “From ASPAC to EAS: South Korea and Southeast Asia,” Asian Affairs:
An American Review, Vol. 41, issue 2, pp.33-55.
16
Brian Bridges (2014) From ASPAC to EAS: South Korea and Southeast Asia, Asian Affairs: An American
Review, Vol. 41, issue 2, pp.33-55.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
8
“Development Cooperation: Korea needs to make contributions more strategically,” May 14,
2015),
Korea
Herald.
Retrieved
from
http://www.koreaherald.com/view.php?
ud=20150514000651. Accessed on 12 August 2015.
Kim Sung Han, (February 2013), “Global Governance and Middle Powers: South Korea’s Role
in the G20, Council of Foreign Relations.” Retrieved from http://www.cfr.org/southkorea/global-governance-middle-powers-south-koreas-role-g20/p30062. Accessed on 6 August
2015.
“Leaders to Launch Prosper Thy Neighbor Initiative,” 26 November 2000, New Straits Times.
Retrieved
from
https://news.google.com/newspapers?
nid=1309&dat=20001126&id=h1NIAAAAIBAJ&sjid=ThQEAAAAIBAJ&pg=5522,6333049&
hl=en. Accessed on 21 August 2015.
Lee Seungjoo, (February 2015), “Policy Recommendation for South Korea’s Middle Power
Diplomacy: Development Cooperation,” EAI Middle Power Diplomacy Initiative Policy
Recommendation 4, East Asia Institute, Seoul, Korea, pg 2.
“List of ASEAN Countries GDP: International Monetary Fund 2014 Estimates.” (2014),
Retrieved from https://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_(nominal).
Accessed on 21 August 2015.
Naidu, Sumisha , (24 August 2015), “ASEAN, Partners Make 'Historic' Progress on RCEP,”
Channel News Asia. Retrieved from http://www.channelnewsasia.com/news/asiapacific/aseanpartners-make/2073038.html. Accessed on 21 August 2015.
OECD (2013), "Overview of Development Gaps in Southeast Asia: Gaps between ASEAN -6
and CLMV Countries", in OECD, Southeast Asian Economic Outlook 2013: With Perspectives
on China and India, OECD Publishing, Paris.
Park Guen Hye (13 December 2014), “A Shared Vision for the Future of ASEAN and South
Korea,” Straits Times. Retrieved from http://news.asiaone.com/news/asian-opinions/sharedvision-future-south-korea-and-asean#sthash.bejflphs.dpuf. Accessed on 20 August 2015.
S. Pushpanathan (2003), “ASEAN’s Strategy Towards Its Dialogue Partners and ASEAN Plus Three Process.”
Retrieved from http://www.asean.org/resources/item/asean-s-strategy-towards-its-dialogue-partners-and-aseanplus-three-process-by-s-pushpanathan. Accessed on 12 August 2015.
“Vietnam Enhances Mekong-ROK Cooperation,” (July 30, 2014), Vietnam Breaking News.
Retrieved from
http://www.vietnambreakingnews.com/2014/07/vietnam-enhances-mekong-rok-cooperation/.
Accessed on 2 August 2015.
Yoon, Sukjoon, “ASEAN-Korea Commemorative Summit 2014: Towards an “Asian
Community”?”
Retrieved
from
http://www.rsis.edu.sg/wpcontent/uploads/2014/12/C014251.pdf. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
9
Yun, Byung-se, (July 29, 2014) Minister of Foreign Affairs, Republic of Korea, “Opening
Remarks at the 4th Mekong-Korea Foreign Ministers’ Meeting.” Retrieved from
http://www.mofa.go.kr/webmodule/htsboard/template/read/engreadboard.jsp?
typeID=12&boardid=14137&seqno=314089&c=&t=&pagenum=1&tableName=TYPE_ENGLI
SH&pc=&dc=&wc=&lu=&vu=&iu=&du=. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
10
Malaysia-Indonesia Relations (PAHMI 9)
Faculty Of Social Sciences
Yogyakarta State University, 15-16 September 2015
SOUTH KOREA-ASEAN RELATIONS:
CONTRIBUTING TOWARDS A STRONGER ASEAN COMMUNITY
Geetha Govindasamy
Department of East Asian Studies
Faculty of Arts and Social Sciences
University of Malaya
50603, Kuala Lumpur Malaysia
Tel: +603 79675631
Fax: +60379675675
geethag@um.edu.my
ABSTRACT
One of the main obstacles in building an ASEAN Community relates to the huge gaps in the levels of
economic and infrastructure development that exists between older and newer member countries of ASEAN. The
paper argues that the construction of an ASEAN Community demands a multilateral approach. ASEAN is doing this
by establishing stronger ties with middle powers in the region. The paper is a preliminary consideration of issues
relating to the relationship between South Korea and ASEAN. It provides a country level exploration of the extent to
which South Korea facilitates the strengthening of the ASEAN Community in various sectors. South Korea, which
prides itself as a middle power, has played a significant role in strengthening ASEAN’s internal and regional
economic and social integration. Both parties are already involved in four significant frameworks namely the
Framework Agreement on Comprehensive Economic Cooperation, ASEAN Plus Three Cooperation, East Asia
Summit and the Regional Comprehensive Economic Partnership (RCEP). Economically, the combination of South
Korea’s technology and ASEAN’s natural resources have seen two way investments and trade linkages rise
significantly. Further, in order to reduce the gap between the older and newer ASEAN member countries, 30% of
Korea’s official development assistance is being channeled to ASEAN. Understanding that the development of the
Mekong region is imperative in achieving the goal of an ASEAN Community, South Korea signed the Han River
Declaration to aid in increasing ASEAN connectivity, improving sustainable development and promoting people - to
people oriented development. In sum, the paper serves as a reminder that the creation of an ASEAN Community
requires some outside assistance and expertise.
Keywords: South Korea, ASEAN, community building, middle power diplomacy, development gap
Theme: International Relations
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
1
1
Introduction
It is important to note while the Association of Southeast Asian Nations (ASEAN) started
looking inwards during its formative years in order to avoid the region from becoming embroiled
in the Cold War conflict, in the middle of the 1970s, with growing confidence of its existence,
ASEAN began attracting much more external attention and involvement. Such external
engagements with ASEAN were designed to “secure technical assistant for regional cooperation
projects; promote trade and economic relations; and strengthen political relations with third
countries and regional groupings.”1 A case in point is ASEAN’s relations with South Korea.
South Korea and ASEAN (the Association of Southeast Asian Nations) established
sectoral dialogue relations in November 1989. South Korea became a full dialogue partner in
1991 and the partnership was elevated to summit level in 1997 and strategic partnership in 2010.
Establishment of relations allowed for recognition of each other’s existence. However, South
Korea nor ASEAN took the relationship seriously as they had contrasting agendas. While
ASEAN was keen in being closer to its East Asian neighbours, South Korea preferred to
strengthen its relations with the United States due to economic and security considerations.
However, the 1997/1998 Asian financial/currency crisis changed the outlook of South
Korea towards its southern neighbours. Like China and Japan, South Korea which was badly
affected by the financial crisis began to take ASEAN seriously in the context of regional
integration and protectionism. The financial crisis elevated ASEAN as a facilitator for deeper
integration of an East Asian community. Though today, the building of an ASEAN community is
discussed widely and is in vogue among scholars, the contribution and involvement of external
partners like Japan, China and South Korea is hardly mentioned in mainstream academic
discussions.
For South Korea, ASEAN is its second largest trading partner and third biggest
investment destination. As a donor country, 30 percent of South Korea’s development assistance
is directed towards ASEAN.2 The paper explores the dynamic relationship between South Korea
and ASEAN in the context of building an ASEAN community, on one hand, with a view towards
narrowing the development gap between the older and newer ASEAN member countries, and on
the other hand, to showcase South Korea’s role as a middle power.
1
S. Pushpanathan (2003), “ASEAN’s Strategy Towards Its Dialogue Partners and ASEAN Plus Three Process.” Retrieved from
http://www.asean.org/resources/item/asean-s-strategy-towards-its-dialogue-partners-and-asean-plus-three-process-by-s-pushpanathan.
Accessed on 12 August 2015.
2
Guen Hye, Park (13 December 2014), “A Shared Vision for the future of ASEAN and South Korea,” Straits Times.
Retrieved from http://news.asiaone.com/news/asian-opinions/shared-vision-future-south-korea-andasean#sthash.bejflphs.dpuf
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
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2
Narrowing the Development Gap and the Principle of “Prosper Thy
Neighbour"3
According to the International Monetary Fund estimates, there is a striking difference in the
gross domestic product (GDP) between older and newer members of ASEAN (see Table 1).The
differences in GDP are due to a variety of factors, some of which include income, human
development and income gaps.
Table 1: ASEAN Countries’ Gross Domestic Product
GDP
Nominal GDP
millions
of per
USD
USD
Countr
y
Population
in millions
ASEAN
633.35 100.0 2,305,542 100.0 3,745
Nominal GDP
capita millions
USD
(PPP) GDP
of per
USD
(PPP)
capita
100.0
3,605,602 100.0 5,857
100.0
85.0
Indonesia 244.47 39.7
878,198
38.1
3,592
95.9
1,216,738 33.7
4,977
Thailand
75.2
10.5
365,564
15.9
5,678
151.6
651,856
18.1
10,126 172.9
Malaysia
30.89
4.8
303,527
13.2
10,304 275.1
498,477
13.8
16,922 288.9
Singapore 6.9
0.9
276,520
12.0
51,162 1,366.1 326,506
9.1
60,410 1,031.4
Philippine
102.8
s
15.6
250,436
10.9
2,614
69.8
424,355
11.8
4,430
75.6
Vietnam
90.39
14.7
138,071
6.0
1,528
40.8
320,677
8.9
3,548
60.6
Myanmar 60.67
10.3
53,140
2.3
835
22.3
89,461
2.5
1,405
24.0
Brunei
0.1
16,628
0.7
41,703 1,113.5 21,687
0.6
54,389 928.6
2.5
14,241
0.6
934
1.0
2,402
0.40
Cambodia 15.25
24.9
36,645
41.0
Laos
6.38
1.0
9,217
0.4
1,446 38.6
19,200
0.5
3,011 51.4
Source: List of ASEAN countries GDP, International Monetary Fund 2014 estimates,
https://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_(nominal)
The end goal of ASEAN is equal partnership among its members that leads to community
building in one form or another. Normally, community integration is usually aimed at building an
equitable economic development across member countries of a particular region. ASEAN
member countries face major challenges in building an integrated ASEAN Community due to
many disparities in terms of differing levels of economic developments, political systems and
3
“Leaders to Launch Prosper Thy Neighbor Initiative,” 26 November 2000, New Straits Times. Retrieved from
https://news.google.com/newspapers?
nid=1309&dat=20001126&id=h1NIAAAAIBAJ&sjid=ThQEAAAAIBAJ&pg=5522,6333049&hl=en. Accessed on
21 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
3
investment strategies.4 Southeast Asian governments have no choice but to overcome such
disparities in order to move towards meaningful integration of an ASEAN Economic Community
in particular and an ASEAN Community in general. Such community building requires
enhancement of information, technology, financial capacity and human resource development
among member countries. This means the promotion of regional development cooperation and
expanding assistance for weaker economies within ASEAN is crucial in order to forge and
accelerate the integration of ASEAN.
Relying on the principle of “Prosper Thy Neighbour” and in so doing “Prosper ASEAN,”
as espoused by Dr. Mahathir Muhammad, the then Prime Minister of Malaysia, Southeast Asian
leaders doubled their efforts not only to build up regional cooperation but also seek assistance
from external sources to pursue greater social and economic integration. Among many of
ASEAN’s strategies, the Initiative for ASEAN Integration (IAI) is of particular significance as it
targets developing education levels, skills development and training workers of lesser developed
ASEAN member countries. In 2000, ASEAN launched the IAI with a view to Narrowing the
Development Gap (NDG) between older (ASEAN 6) and newer member countries (namely
Cambodia, Lao PDR, Myanmar, and Vietnam). 5 Internally, the IAI, was implemented to
accelerate the economic development of Cambodia, Laos and Vietnam with the help of the more
developed ASEAN 6 members. External dialogue partners like the European Union, Australia,
China, Japan and South Korea equally continue to play a role in narrowing the development gap
in ASEAN.
3
South Korea’s Role in Narrowing the Development Gap in ASEAN
South Korea, which prides itself as a middle power, has played a significant role in
strengthening ASEAN’s regional economic and social integration. Both parties are already
involved in four significant frameworks namely the Framework Agreement on Comprehensive
Economic Cooperation, ASEAN Plus Three Cooperation, East Asia Summit and the Regional
Comprehensive Economic Partnership (RCEP).
As a prime example of external involvement in the IAI projects, to narrow ASEAN’s
economic and digital disparities, South Korea offered training programmes in human resource
development and information technology.6 Thus far, South Korea has steadily concentrated 30
4
OECD (2013), "Overview of Development Gaps in Southeast Asia: Gaps between ASEAN -6 and CLMV
Countries", in OECD, Southeast Asian Economic Outlook 2013: With Perspectives on China and India, OECD
Publishing, Paris.
5
ASEAN Secretariat (2015), “Initiative for ASEAN Integration (IAI) and Narrowing the Development Gap
(NDG).” Retrieved from
http://www.asean.org/communities/asean-economic-community/category/initiative-for-asean-integration-andnarrowing-the-development-gap. Accessed on 26 August 2015.
6
ASEAN Secretariat (25 November 2000), “Press Statement for the Fourth ASEAN Informal Summit,”
Singapore. Retrieved from http://www.asean.org/news/item/the-fourth-asean-informal-summit-22-25november-2000-singapore. Accessed on 12 August 2015.
PAHMI 9th International Conference
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4
per cent of its total official development assistance in the ASEAN region. 7 The ASEAN-ROK
Cooperation Fund, established in 1990, operates with an annual budget of USD 5 million serves
to fund developmental projects dealing with technology transfer, human resource development,
people to people exchanges, and exchanges of intellectuals between Korea and ASEAN. For the
IAI projects planned between 2003 and 2017, South Korea has committed to contribute close to
USD 15 million. For instance, between 2008 and 2012, South Korea concentrated on
strengthening the CLMV capacity for the ASEAN-ROK Cyber University project and initiated a
multi-purpose rainwater management project for countries bordering the Mekong River.8
Understanding that the development of the Mekong region is imperative in achieving the
goal of an ASEAN Community, South Korea signed the Han River Declaration in 2011 to aid in
increasing ASEAN connectivity, improving sustainable development and promoting people - to
people oriented development. Apart from the water resource management, the priority areas for
developing the Mekong region include ICT, green growth, agriculture development as well as
human resource development. Hence, it was not surprising that in July 2014, the CLMV, Thai
and Korean foreign ministers adopted a 2014-2017 Action Plan and agreed upon the the use of
the Mekong-Republic of Korea Cooperation Fund to expand cooperation. According to the
Vietnamese Deputy Foreign Minister, Bui Thanh Son,
First, we increase connectivity among Mekong sub-region countries in
the areas of transport infrastructure, forwarding and energy to boost
regional economic integration. Second, we focus on projects in the
common value chain of Mekong sub-region countries to make the most
of their potentials in manufacturing, agricultural processing, and green
growth. Third, we enhance the public-private partnership to effectively
engage enterprises in the Mekong-ROK cooperation.9
Recently a journalist observed that “ASEAN is the secret weapon of Korea’s foreign policy.”
Since development projects are greatly in demand in the CLMV countries and the Mekong
region has tremendous potential, Korea believes its economic development experience can serve
to strengthen ASEAN economy as the next growth engine for the world economy. 10 If and when
7
Guen Hye, Park (13 December 2014), “A Shared Vision for the Future of ASEAN and South Korea,” Straits
Times. Retrieved from http://news.asiaone.com/news/asian-opinions/shared-vision-future-south-korea-andasean#sthash.bejflphs.dpuf. Accessed on 20 August 2015.
8
ASEAN Secretariat (2015), “ASEAN-Republic of Korea Dialogue Relations.” Retrieved from
http://www.asean.org/news/item/asean-republic-of-korea-dialogue-relations. Accessed on 12 August 2015.
9
“Vietnam Enhances Mekong-ROK Cooperation,” (July 30, 2014), Vietnam Breaking News. Retrieved from
http://www.vietnambreakingnews.com/2014/07/vietnam-enhances-mekong-rok-cooperation/. Accessed on 2 August
2015.
10
Yun Byung-se, (July 29, 2014) Minister of Foreign Affairs, Republic of Korea, “Opening Remarks at the 4th
Mekong-Korea Foreign Ministers’ Meeting.” Retrieved from
http://www.mofa.go.kr/webmodule/htsboard/template/read/engreadboard.jsp?
typeID=12&boardid=14137&seqno=314089&c=&t=&pagenum=1&tableName=TYPE_ENGLISH&pc=&dc=&wc
=&lu=&vu=&iu=&du=. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
5
ASEAN becomes a common market, it is believed that the Mekong region will play a huge role
in opening up opportunities for regional and foreign investors including the Republic of Korea.
Strengthening the Mekong region inexorably supports in further integrating the CLMV members
into ASEAN which in the long run will allow for a successful building of a community.
4
South Korea, ASEAN and Middle Power diplomacy
As mentioned above, while community building is the ultimate goal, ASEAN as an
organization faces some challenges in narrowing the development gap that exists between the
ASEAN 6 and CLMV countries. Overcoming these challenges requires regional as well as
international collaborations. Within this context, a middle power like South Korea has the ability
to accelerate consensus building, supply funds and mobilize cooperation in order to generate
more robust growth. According to South Korea’s Vice Minister of Foreign Affairs and Trade,
Kim Sung Han,
Middle powers are medium-size states with the capability and
willingness to employ proactive diplomacy with global visions. Their
policies fulfill their respective interests but also benefit the world.
Middle powers promote new visions and creative ideas that are
acceptable to both their domestic constituencies and other states. They
are also willing to make the necessary contributions to materialize such
visions.11
Under the pretext of “contribution diplomacy,” the government of President Lee Myung
Bak focused on development cooperation as a vital component in promoting South Korea’s
middle power diplomacy.12 Subsequently the Park Geun-hye government which emphasizes
development cooperation and security, launched its “middle power diplomacy” together with the
Peace Process of the Korean Peninsula and the Northeast Asia Peace and Cooperation Initiative.
In line with this, South Korea which is a developed country with an advanced economy
has actively demonstrated its middle-power diplomacy in ASEAN through its leadership and
contributions in developmental cooperation. As Kim notes, middle powers seek relationships that
are mutually beneficial. Seoul’s main interests is in gaining access to resources in Southeast Asia
as well as support for its security policies concerning North Korea. Similarly, by strengthening
its relationship with South Korea, ASEAN leaders have much more to gain. As the main
objective is to reduce the developmental gap in ASEAN, Southeast Asian leaders have taken full
advantage of South Korea’s transformation from an aid recipient to a donor. Korea’s past
experience of rising from the ruins of the 1950-53 Korean War to become a major economic
11
Sung Han, Kim (February 2013), “Global Governance and Middle Powers: South Korea’s Role in the G20,
Council of Foreign Relations.” Retrieved from http://www.cfr.org/south-korea/global-governance-middlepowers-south-koreas-role-g20/p30062. Accessed on 6 August 2015.
12
Seungjoo Lee, (February 2015), “Policy Recommendation for South Korea’s Middle Power Diplomacy:
Development Cooperation,” EAI Middle Power Diplomacy Initiative Policy Recommendation 4, East Asia Institute,
Seoul, Korea, pg 2.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
6
powerhouse is a valuable lesson, in particular for the CLMV states. 13 At the same time, ASEAN
perceives that this relationship will help the organization progress from being a mere regional
economy to a global economic powerhouse.
Furthermore, South Korea – ASEAN partnership is expected to create more balance
within the Asian region which is dominated by China’s aggressive behaviour and the United
States’ pivot to Asia policy. Within this context, President Park Guen Hye spoke at length about
the creation of an “East Asian Economic Community” at the 2014 ASEAN-South Korea
commemorative summit in Busan, South Korea. The Park government expects the proposed
Regional Comprehensive Economic Partnership (RCEP) to be the backbone of an East Asian
Community. The RCEP involves negotiations between the 10 ASEAN member nations and six
free trade agreement (FTA) partners, namely Australia, China, India, Japan, New Zealand and
South Korea. Its objective is to forge closer economic integration by removing barriers to trade
and investments. If successful, the RCEP which accounts for almost 30 per cent of the world’s
gross domestic product (GDP) will be potentially the world's largest trade agreement. 14
According to Yoon Sukjoon, Senior Research Fellow at the Korea Institute for Maritime
Strategy, middle players like South Korea and ASEAN who are geo-strategically important can
be conduits to building an “Asian Security Community” grounded on common economic
interdependence. Further, Yoon highlights that,
Two-way trade between ASEAN and South Korea went from US$8.2
billion in 1989 to US$135 billion in 2013. ASEAN has rich natural
resources and an increasingly educated labour force while South Korea
can provide technology and manufacturing investment. Even more
important than these economic interactions is the vision shared by
ASEAN and South Korea for an Asian Community comparable with the
European Union but with values based on the "Asian Way”.15
ASEAN has always diversified its economic interactions with a variety of partners. South
Korea’s increasing trade and investment as well as financial contributions into ASEAN certainly
provides the impetus for narrowing the developing gap present between member countries. By
the same token, ASEAN offers tremendous opportunities for South Korean businesses, especially
small and medium sized companies that have thus far focused their attention on China. ASEAN
has a population of 640 million and a GDP of USD3 trillion and is resource rich. On the other
hand, South Korea relies heavily on importing raw materials and energy supplies. The CLMV
13
“Development Cooperation: Korea needs to make contributions more strategically,” May 14, 2015), Korea
Herald. Retrieved from http://www.koreaherald.com/view.php?ud=20150514000651. Accessed on 12 August
2015.
14
Sumisha Naidu, (24 August 2015), “ASEAN, Partners Make 'Historic' Progress on RCEP,”
Channel News Asia. Retrieved from http://www.channelnewsasia.com/news/asiapacific/asean-partnersmake/2073038.html. Accessed on 21 August 2015.
15
Sukjoon Yoon, “ASEAN-Korea Commemorative Summit 2014: Towards an “Asian Community”?” Retrieved
from http://www.rsis.edu.sg/wp-content/uploads/2014/12/C014251.pdf. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
7
countries lower labor costs is another attractive feature to consider for Korean manufacturing
companies that want to manufacture products cheaply for export to third country markets. With
the Chinese economy slowing down, it is only logical that these companies now invest more in
ASEAN. Seen in this context, Park’s government’s expectation of the RCEP being the backbone
for an East Asian Economic Community is not implausible. In other words, South Korea and
ASEAN can build a bridge to an dynamic Asian community than spans from East Asia to
Southeast Asia with partnerships with the rest of the world.
5
Conclusion
The paper serves as a reminder that the creation of an ASEAN Community requires some
outside assistance and expertise. South Korea, as an external partner of ASEAN for more than
two decades has increasingly played an important role in the development of community
building in the Asia Pacific region. Historically, Korean leaders have intermittently looked
towards building networks in the Southeast Asian region, starting with the Asia Pacific Council
(ASPAC), Pacific Basin Economic Council (PBEC), Asia Pacific Economic Cooperation
(APEC), The ASEAN Regional Forum (ARF), ASEAN + 3 and the East Asian Community
(EAS).16 In contemporary times, South Korea’s middle power role has coincided with ASEAN’s
objective of creating an ASEAN Community. Facing challenges due to differing development
status between the ASEAN 6 and the CLMV countries, the South Korea-ASEAN partnership has
potential not only to reduce the developmental gap in order to create an Asian/ASEAN
Community but also to initiate an alternative future global economic entity.
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Development Gap (NDG).” Retrieved from
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16
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PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
8
“Development Cooperation: Korea needs to make contributions more strategically,” May 14,
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Park Guen Hye (13 December 2014), “A Shared Vision for the Future of ASEAN and South
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Retrieved
from
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PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
9
Yun, Byung-se, (July 29, 2014) Minister of Foreign Affairs, Republic of Korea, “Opening
Remarks at the 4th Mekong-Korea Foreign Ministers’ Meeting.” Retrieved from
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typeID=12&boardid=14137&seqno=314089&c=&t=&pagenum=1&tableName=TYPE_ENGLI
SH&pc=&dc=&wc=&lu=&vu=&iu=&du=. Accessed on 2 August 2015.
PAHMI 9th International Conference
Yogyakarta State University, 15 -16 September 2015
10