[New Wave] The True Meaning of 'Economic Security'

“Economic security” is the top priority national agenda of the Yoon Suk-yeol administration. Starting with the US-China trade war in 2018 and Japan’s export restrictions in 2019, followed by the COVID-19 pandemic, various security threats such as vaccine and health security, supply chain risks, and more recently the Ukraine crisis have emerged, making economic security naturally embedded in our daily lives.

But what exactly is economic security? Some say it is semiconductors and supply chains, others mention science and technology, and still others refer to diplomacy and trade. Although economic security has become a hot topic, it is difficult to find a place that clearly defines its meaning. Economic security can be understood as protecting the people, economy, and sovereignty from economic threats and driving future growth through the integrated management of supply chains, research and development (R&D), diplomacy, trade, and industrial technology security.

As seen in the US efforts to check China, the foundation of economic security lies in the goal of gaining an advantage in the global hegemony competition. US President Joe Biden, who began his first Asia tour in South Korea, visited a Samsung Electronics semiconductor plant as his first schedule in Korea. Subsequently, at the high-level virtual meeting of the Indo-Pacific Economic Framework (IPEF) attended by leaders from 13 countries including South Korea, cooperation was strengthened on four agendas: trade, supply chains, decarbonization, and taxation. President Biden’s visit to Korea aimed to secure cooperation in advanced fields such as semiconductors, secondary batteries, and displays, where Korea possesses world-class technology. To achieve precise goals, the US is strengthening economic and military alliances such as IPEF promotion, European trade and technology cooperation, strategic partnerships with the Association of Southeast Asian Nations (ASEAN), the Quad, and the Five Eyes.

The most important factor in realizing international security is setting clear goals and establishing a system for utilizing national resources. President Yoon has advocated for “becoming a global pivotal state.” It is necessary to define what a global pivotal state is and prepare detailed goals to realize it. The task of systematically executing the scattered elements of economic security must also be addressed.

Recently, it is necessary to refer to Japan’s policies. Prime Minister Fumio Kishida, upon launching his new cabinet last October, established the position of Minister for Economic Security within the Cabinet Office and created the Economic Security Promotion Council, a ministerial meeting, to implement economic security strategies. On May 11, the House of Councillors passed the “Economic Security Promotion Act,” a legal foundation for comprehensively promoting economic security strategies such as strengthening supply chains of critical materials, securing social infrastructure safety, developing advanced technologies, and establishing a confidential patent system. Prime Minister Kishida is personally overseeing related laws to achieve the goal of becoming a global hegemon following the Quad countries and Five Eyes members. There are also notable moves to strengthen close relations with allied countries.

The Yoon administration has appointed Wang Yoon-jong as the Secretary for Economic Security, establishing the Emerging Security Committee (in peacetime) under the Prime Minister’s Office and the National Security Office (in times of crisis) under the Presidential Office. As the US is entering a phase of establishing a long-term system to check China, we must also be fully prepared. Economic security is directly linked not only to global crisis response but also to future growth. Its success depends on building a command line with a system that organically connects and comprehensively manages the fragmented policies of various ministries and possesses strong execution capabilities.

Son Seung-woo, President of the Korea Intellectual Property Research Institute