"60th Anniversary of Diplomatic Relations Between Han and Hoar, Need to Diversify Future Economic Cooperation Areas"

The 42nd Korea-Australia Economic Cooperation Committee Meeting Held

[Asia Economy Reporter Jeong Hyunjin] The Federation of Korean Industries (FKI) held the "42nd Korea-Australia Business Cooperation Committee" on the 28th at the JW Marriott Hotel, jointly with the Australia-Korea Business Cooperation Committee (AKBC), to commemorate the 60th anniversary of diplomatic relations between Korea and Australia. This joint meeting discussed future growth engines and new business opportunities within existing cooperation sectors between the two countries.

The meeting, held online, was attended by Choi Jung-woo, Chairman of the Korea-Australia Business Cooperation Committee (Chairman of POSCO), Simon Crean, Chairman of the Australia-Korea Business Cooperation Committee, Dan Tehan, Australian Minister for Trade, Tourism and Investment, Han Ki-ho, Chairman of the Korea-Australia Parliamentary Friendship Association, Kwon Tae-shin, Vice Chairman of FKI, Kim Dae-young, Executive Director of Hanwha Defense, among others. Additionally, Kang Jung-sik, Korean Ambassador to Australia, and Catherine Raper, Australian Ambassador to Korea, each delivered congratulatory remarks.

Chairman Choi Jung-woo said, "We congratulate the 60th anniversary of diplomatic relations between Korea and Australia since 1961, and over the past 60 years, economic cooperation between the two countries has been more successful than with any other nation." Minister Dan Tehan stated, "As Australia and Korea have agreed to develop a comprehensive partnership, we expect the economies of both countries to be revitalized, providing new jobs and business opportunities," adding, "We are particularly pleased that Korea is actively considering joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)."

In the first session on critical minerals, David Whittle, CEO of ASM, representing Australia, said, "Permanent magnets, which are core materials used in electric vehicles, wind turbines, aerospace, telecommunications, renewable energy, and next-generation industries, are currently supplied almost exclusively by a single country, China, and are expected to remain fully dependent on China in the future." He added, "We are promoting the Dubbo rare earth mine project with Korean partners. Thanks to Korea's first commercialized low-emission metallization technology, we have succeeded in reducing emissions by up to nearly 70% compared to current industry standards."

On the Korean side, Oh Gae-hee, Head of the Secondary Battery Materials Strategy Group at POSCO, presented, "Australia, which possesses critical minerals such as lithium, nickel, and graphite for secondary batteries, and POSCO, which has strengths in the technology and production of cathode and anode materials, are optimal partners." He stated, "Based on cooperation between Australia and Korea, we will build a secondary battery raw materials and materials platform to expand global automobile and battery customers."

In the hydrogen industry sector, Choi Yong-ho, Partner of Deloitte Consulting's Energy and Industrial Materials Sector, introduced, "Due to the vast value chain scope of the hydrogen economy, it is difficult for a single company to pursue it independently, and strategic collaboration among hydrogen companies is essential." He explained, "To promote cooperation among various companies in supply, demand, and infrastructure areas and to effectively reduce uncertainties throughout the value chain, the Korea H2 Business Summit, a private hydrogen company council, was launched."

In the second session on new business opportunities within existing cooperation sectors, Adrian Dwyer, CEO of the infrastructure think tank IPA, introduced Australia's current infrastructure project pipeline and presented three ways Korean companies can enter the Australian infrastructure market. He proposed three strategies: starting with small-scale projects to build trust with the government, acquiring and expanding local Australian companies, or forming consortia through partnerships with various companies like GS Engineering & Construction.

Meanwhile, Julie Quinn, Head of the Australian Trade and Investment Commission, continued with a presentation on vaccine cooperation between Korea and Australia. She emphasized, "Although Korea and Australia ranked 21st and 9th respectively in COVID-19 prevention performance, both countries failed in COVID-19 vaccine development," adding, "Cooperation between the two countries is important to catch up with leading vaccine technologies in Europe and the United States."

The 42nd joint meeting, conducted in a hybrid format of online and offline, was attended on the Korean side by POSCO, Hanwha Defense, Doosan Heavy Industries & Construction, Daewoo Engineering & Construction, GS Engineering & Construction, Korea Shipping Corporation, Lotte Chemical, and Kolon Industries. On the Australian side, ASM, Woodside, CSIRO, PwC, and Origin Energy participated. The meeting was conducted via video connection between Korean participants gathered on-site and Australian participants attending online.