"President Yoon to Clearly Convey Government-Business One-Team Commitment"
Yoon Administration Opens NATO Markets in Eastern Europe Soon After Inauguration
Exports to Europe Also Growing... Potential for Increased Profits
President Yoon Suk-yeol is set to embark on his second visit to the North Atlantic Treaty Organization (NATO). Having chosen NATO as his first overseas trip after taking office, President Yoon plans to focus this time on securing tangible benefits through sales diplomacy and establishing South Korea's role in the international community. A senior official from the presidential office stated, "Since last year’s NATO was a debut in multilateral diplomacy, this time we expect results that reflect responsibility and practical gains."
President Yoon will visit Lithuania and Poland from the 10th for a 4-night, 6-day trip. On the 11th and 12th, he will attend the NATO summit held in Vilnius, Lithuania, to discuss the Ukraine war, security cooperation, and other issues. Following this, he plans to hold a South Korea-Poland summit in Poland to coordinate ways to develop the strategic partnership between the two countries.
As South Korea’s "No. 1 Salesperson," President Yoon is expected to focus not only on diplomacy and security but also on economic achievements. The key points to watch are ▲strengthening supply chains ▲securing new export markets ▲cooperating on Ukraine’s reconstruction. The plan is to engage in "sales diplomacy" by strengthening supply chains with countries that share values to overcome the global complex crisis and to make visible progress in reconstruction cooperation projects for Ukraine, which has suffered damage from the war.
① Yoon Government’s Core Task: Vital Expansion of Supply Chains
Choi Sang-mok, Senior Secretary for Economic Affairs, also told reporters the day before, "President Yoon plans to discuss various cooperation measures to strengthen supply chains in advanced industries such as critical minerals and materials, parts, and equipment (SoBuJang) with the leaders of countries attending the NATO summit." According to the presidential office, at least 10 bilateral meetings with heads of state are scheduled in Lithuania.
Securing supply chains in Eastern Europe and NATO countries in Europe has been a key industrial agenda continuously pursued since the Yoon administration took office. President Yoon personally took the lead in building multi-sector supply chains between South Korea and the EU. During his previous visit to France, he stated, "South Korea and Europe are partners sharing universal values, having established close supply chains through investments in advanced industries," attracting investments from leading European companies in secondary batteries, electric vehicles, offshore wind power, and advanced materials.
Moreover, with recent export controls imposed by China on gallium and germanium?used in advanced technology and defense industries?European countries have become increasingly concerned, raising the possibility that the EU might voice a joint response through NATO this time.
② EU, Second Highest Export Growth Rate for South Korea, a 'New Market' with Great Potential
Although trade volume with Europe is not large, its cooperation potential is significant, making it meaningful in terms of "securing new markets." According to the government’s "Export Growth Rate by Country and Region for the First Half of the Year," exports to China (-26%), ASEAN (-20.4%), and Latin America (-14.6%) decreased compared to the same period last year, whereas the European Union (EU, 5.7%) ranked second in export growth after the Middle East (14.3%). The presidential office believes that with President Yoon’s continuous "sales diplomacy" establishing basic supply chains and securing markets in advanced industrial sectors, both the export volume and profits to Europe can increase.
Poland is regarded as a foothold for South Korean companies entering Europe. In Poland, President Yoon plans to hold a summit attended by both countries’ leaders and 250 businesspeople from both sides, signing numerous memorandums of understanding (MOUs) in new industries, energy, infrastructure, and other fields. Accompanying the president on this trip are major business leaders including Koo Kwang-mo, Chairman of LG Group, and Kim Dong-kwan, Vice Chairman of Hanwha, along with 89 businesspeople from sectors such as secondary batteries, defense, nuclear power, and construction as part of the economic delegation.
③ Securing the 1,000 Trillion Won Ukraine Reconstruction Project
Poland, being the closest country to Ukraine, is expected to become a hub for post-war reconstruction. President Yoon’s plan to meet with South Korean companies participating in Ukraine’s reconstruction projects during his visit to Poland to discuss government support measures aligns with this context. President Yoon has already clearly expressed his support intentions by meeting Ukrainian President Volodymyr Zelenskyy at the G7 Hiroshima summit. The presidential office stated that after the summit, both leaders agreed on the necessity of bilateral cooperation for Ukraine’s reconstruction and recovery, officially endorsing South Korean companies’ participation in reconstruction projects.
Government-level actions have already begun. The government attended the "Ukraine Recovery Conference" held in London last month, expressing its willingness to participate in reconstruction. At the conference, Visit Kyoo, Minister for Government Policy Coordination, who represented the government, emphasized, "Based on South Korea’s post-war economic development experience, we can support the reconstruction of essential infrastructure and the restoration of basic social services." He also introduced South Korea’s support to Ukraine, amounting to $100 million (approximately 129.3 billion KRW) last year and $130 million (approximately 168.1 billion KRW) this year.
A presidential office official said, "Since many domestic companies have entered Europe, including Poland, the president will meet with as many of them as possible to listen to their difficulties and convey the government and companies’ one-team philosophy and commitment."
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