Korea-US Leaders Strengthen Cooperation on 'Semiconductors and Nuclear Power'... Establish Economic Security Channel [Korea-US Summit]

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] South Korea and the United States are building a new Korea-US alliance centered on economic security. Amid agreements to strengthen practical cooperation in new industrial sectors such as semiconductors, batteries, nuclear power, and bio, both countries have decided to jointly respond to market shocks caused by changes in the international order. To this end, an economic security dialogue between the presidential offices will be established, allowing the two countries to communicate and cooperate frequently in areas such as supply chains and advanced science and technology.

On the 21st, President Yoon Suk-yeol and U.S. President Joe Biden issued a joint Korea-US statement containing these details, agreeing that supply chain disruptions caused by changes in the international security order directly affect citizens' lives. President Yoon emphasized, "The Korea-US alliance must evolve further to meet this new reality."

President Biden also referred to his visit to the Samsung semiconductor plant in Pyeongtaek with President Yoon the previous day, highlighting supply chain cooperation between the two countries. President Biden explained, "Through innovation between Korea and the United States, the world's best semiconductors are being developed," adding, "Companies like Korea's Samsung are currently investing billions of dollars in the United States." He continued, "Through this, we will become closer and cooperate more closely," and "We will strengthen our supply chains and prepare for shocks to maintain our competitive edge."

To this end, Korea and the U.S. have agreed to newly launch an 'Economic Security Dialogue' between their presidential offices to frequently communicate and cooperate in economic security areas such as supply chains and advanced science and technology. Additionally, both countries' nuclear power industries will work together to develop and promote the export of new reactors and small modular reactors (SMRs). Furthermore, negotiations will begin on the 'Defense Mutual Procurement Agreement,' which can be considered an FTA in the emerging defense sector.

In particular, emerging technologies including bio technology have been selected as protection targets, and public-private cooperation will be strengthened. Specifically, the agreement includes expanding human exchanges among experts, promoting investment, and establishing a research and development cooperation system. This also includes strengthening cooperation in advanced technology fields such as joint research and development to solve social issues like infectious diseases and dementia, as well as synthetic biology.

Plans were also made to expand space exploration cooperation and resume the 'Korea-US Civil Space Dialogue' to develop cooperation between the two countries beyond space technology to the space industry. The U.S. also confirmed its willingness to support the development of the 'Korean Positioning System (KPS)' during this meeting. President Yoon explained, "By regularizing the Korea-US Civil Space Dialogue, we expect to discover various cooperation agendas in fields such as space technology exchange."

Efforts will also be focused on one of the core agendas, supply chain construction. To reorganize the supply chain between Korea and the U.S. and attract mutual investment, detailed plans will be discussed through the U.S.-led Supply Chain Ministerial Meeting. However, considering the Chinese government's opposition to supply chain reorganization, an economic cooperation system will be established to strengthen economic cooperation communication with China. The two leaders agreed, "The Korea-US Free Trade Agreement (FTA), which celebrates its 10th anniversary this year, remains the foundation of the economic relationship between the two countries," and added, "Based on shared values of fair and market-based competition, we will jointly respond to market distortion practices."