[Square] The Leviathan of International Trade (Leviathan)

'Leviathan' is a classic work of political science written by the 17th-century English political philosopher Thomas Hobbes. Hobbes described the chaotic domestic political situation he witnessed in England as a "war of all against all (Bellum omnium contra omnes)" and pondered ways to restore stable order amid such turmoil. His conclusion was that members of society should delegate certain rights to the state, which would create and enforce rules while judging violations. Hobbes likened this state to the gigantic sea monster called 'Leviathan' mentioned in the Bible.

If Hobbes' ideas are extended and applied to the international trade system, the Leviathan created to maintain the global supply chain and international trade order is the World Trade Organization (WTO). South Korea is a representative beneficiary of the WTO multilateral trade order. Over the past 60 years, while the gross domestic product (GDP) increased about 580 times, the trade volume increased about 1960 times, making South Korea a living testament in the history of global economic development to how free trade and multilateralism contribute to economic development and national wealth creation. Moreover, in trade disputes with major trading partners, South Korea has achieved four wins out of four cases through an order based on laws rather than power. This remarkable story of South Korea’s trade and growth was made possible by the existence of the Leviathan called the WTO.

However, there are concerns that the WTO-centered multilateral trade order is weakening recently. While the global economy is rapidly changing in areas such as digital, environment, and health, the WTO has failed to create new norms, whereas regionalism is spreading through agreements like the United States-Mexico-Canada Agreement (USMCA), intensifying the fragmentation of trade norms. Additionally, the WTO has not been able to properly control protectionist behaviors of countries, and its dispute settlement system has ceased functioning due to a lack of appellate body members, leaving trade disputes unresolved. The Leviathan of trade, which has protected the multilateral trade order, is now bound hand and foot and gagged, unable to function properly. Once again, the dark shadow of the "war of all against all" is looming. Now is the time for us, the beneficiaries of the multilateral system, to show proactive leadership to restore the Leviathan.

Expectations for South Korea’s global leadership were clearly felt during the author’s visit to Geneva last month. The author met with heads of international organizations such as the WTO, United Nations Conference on Trade and Development (UNCTAD), and International Organization for Standardization (ISO), all based in Geneva, the home of the multilateral system. The author expressed to the WTO Director-General our firm intention to actively contribute to restoring the multilateral system. Discussions were held with UNCTAD, which recently reclassified South Korea from a developing country to an advanced country group, on sharing our experiences with other countries. Cooperation was also established with ISO to develop international standards in new fields such as digital and carbon neutrality, laying the foundation to lead the era of technological hegemony competition.

In this way, South Korea has become a cutting-edge technology powerhouse attracting global attention, an industrial powerhouse in semiconductors and electronics, and a cultural advanced country represented by Squid Game and BTS. Now, South Korea must play the role of a rule-setter, not just a rule-follower, and it has the capabilities to do so. For the further development of South Korea and the global economy, we must pool wisdom to help the Leviathan of trade overcome its current difficulties and perform its functions. To this end, we must demonstrate leading global leadership.

Yeo Han-gu, Director-General for Trade Negotiations, Ministry of Trade, Industry and Energy