Politics, Closely Watching US Moves but No Concrete Details, Cautious Mode Maintained
[Asia Economy Reporter Lim Cheol-young] The concept of the "Economic Prosperity Network (EPN)," a new US-centered economic bloc that had been lying dormant, has rapidly emerged. The EPN initiative had faded from attention for a while as the US-China trade dispute entered a lull at the end of last year and countries focused all their efforts on responding to the novel coronavirus disease (COVID-19). However, with the recent rapid escalation of conflicts between the US and China, if discussions related to the EPN between the two countries become concrete, it is expected to place a significant burden on the South Korean government.
Domestic companies with high dependence on China are also on high alert, concerned that this could lead to a second THAAD (Terminal High Altitude Area Defense) incident. Since the Korea-China relationship is closely linked to the semiconductor industry, a mainstay of the Korean economy, and given the US pressure to decouple from China, including participation in the Huawei boycott, there is no choice but to worry about the possibility of economic retaliation from China against Korean companies.
Concerns surrounding the EPN initiative stemmed from remarks made by Keith Krach, US Under Secretary of State for Economic Growth, Energy, and the Environment, during a special telebriefing at the Asia-Pacific Media Hub on the 20th (local time). Referring to the 4th Korea-US High-Level Economic Dialogue held in Seoul on November 6 last year, he stated, "We discussed the EPN initiative for a coalition of countries including the US and South Korea." At that time, Under Secretary Krach and Second Vice Foreign Minister Lee Tae-ho discussed bilateral economic relations as well as ways to link the New Southern Policy and the Indo-Pacific Strategy, and adopted a joint statement.
In particular, Under Secretary Krach openly pressured South Korea to participate in the "anti-China front," emphasizing "democratic values" and the "Korea-US alliance." He said, "The EPN consists of countries, companies, and civil society with similar positions and operates based on democratic values," adding, "South Korea is a great ally of the United States and has a deep and comprehensive relationship." He further added, "There is a great opportunity to work together with South Korea."
The government plans to closely monitor the US's moves for now. Since the initiative is still in the conceptual stage and no concrete details have been finalized, it is not yet the time for the Korean government to state its position. However, if discussions related to the EPN between Korea and the US become concrete, inter-agency discussions at the government level will likely be necessary. Christopher Ford, US Assistant Secretary of State for International Security and Nonproliferation, also pointed out, "As we begin to recognize the threats posed by Chinese technology companies like Huawei, we will increasingly seek truly reliable suppliers," adding, "This will create opportunities for reliable suppliers worldwide, including South Korea's Samsung."
An official from the Ministry of Foreign Affairs explained, "Relevant departments are closely monitoring and internally preparing response measures regarding their respective areas of responsibility," adding, "Since this matter is being discussed and reviewed at the Foreign Policy Coordination Meeting launched by the Ministry of Foreign Affairs last year, various preparatory tasks are underway to activate the meeting."
The Foreign Policy Coordination Meeting, launched in July last year to respond to rapidly changing international situations such as the US-China trade dispute and Japan's export control measures, has not been held even once this year since its second meeting on December 30.
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