South Korea and ASEAN
SOUTH Korea has led a regional rebound with China and Singapore as companies, including Hyundai Motor Co. and Samsung Electronics Co., reported a surge in profits driven by overseas sales.
Gross domestic product expanded 2.6% in the second quarter and 1.9% in the third quarter ending in September.
Furthermore, South Korea's profile has risen in many directions: First, South Korea is the host of next year's G-20 meeting. G-20 take centre stage in global politics and represent two-thirds of the world population, comprise 85% of global gross national product and 80% of world trade (including EU intra-trade).
Second, South Korea has signed a Free Trade Agreement with European Union and its economy is being gradually integrated with EU's economy. Third, the current UN secretary general is a South Korean national.
Until recently, South Korean official presence has been quite muted. Now with the restoration of its economy after the global recession, it has both confidence and money to make its own mark. Aid has been stepped up and South Koreans have been prominent in disaster relief efforts in Indonesia and the Philippines.
Asean has been a fertile ground of South Korea's influence. Economically, there is nothing new about the South Korean presence in Asean. South Korean companies were the first to set up export factories in Vietnam more than a decade ago.
South Korean investment is found almost anywhere in Asean. South Koreans have bought up golf courses and have dominated the tourist districts in the Philippines. South Korean TV dramas have a huge following in Asean.
Against this background, South Korean President Lee Myung-bak embarked on a visit to Vietnam, Cambodia and Thailand from October 20th to 24th.
During the three-day visit to Vietnam, President Lee Myung-bak held talks with President Nguyen Minh Triet, paid a courtesy visit to Party General Secretary Nong Duc Manh and met with Prime Minister Nguyen Tan Dung.
During the talks, the two presidents agreed to elevate the two countries' "comprehensive partnership in the 21st century" to a "strategic cooperative partnership."
The two state leaders reached agreement to further increase visits by and meetings of high-ranking leaders and to establish a strategic dialogue mechanism at the level of deputy foreign minister to help deepen bilateral cooperation.
They have set out to raise two-way trade to $20 billion by 2015 along with further improving the balance of trade, and to consider the elevation of the project to develop areas along the Hong (Red) riverbanks into a national-scale project.
During his visit to Cambodia, on October 22-23, the South Korean president promised to provide $200 million in concession loans for 2009 to 2012 to develop the Cambodian economy and society. Together with the above concession loan, it is reported that the governments of both countries also signed nine agreements and memorandums of understanding to strengthen cooperation between Cambodia and Korea.
The South Korean president also said that he saw some positive points for future cooperation between both countries in agriculture and bio-energy. The president focused on cooperation in forestry. The forestry project will become a mechanism for increasing "green" cooperation bilaterally, which can create proper carbon dioxide emission credits and help to control global climate change.
Another field is cooperation in industry, to provide training and education services to the more than 500 enterprises in Cambodia contributing to develop the Cambodian economy. The will be cooperation in building infrastructure where, since the 1970s, Korea has a lot of techniques, capital, and experience, and has constructed infrastructure in Korea and in other countries in electricity, roads, and railroads.
On October 23, President Lee arrived in Thailand to attend to a regional forum hosted by Asean. The Korea-Asean summit was held on October 24th, followed by the Asean Plus Three Summit that involves the leaders of Korea, Japan and China. The bilateral summits largely sought to improve Seoul's ties with Asean members.
The president cemented ties with Asian neighbours at the summit by earmarking half of the $200 million South Korean East Asia Climate Partnership Fund for cooperative programs in Asean countries.
South Korea's desire for influence in the region may help ease the rivalry between China and Japan in the region. Asean welcomes more outside players in the region, particularly at a time when China has become too dominant. Adding friends in Asean is welcome and the member-countries can fine-tune theirbalancing act with China -- Asean's largest trading partner.
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