'45th Korea-Australia Economic Cooperation Committee' Held
"Core Mineral Supply Chain Cooperation... Crossing the Chasm"
"Contributing to Global Economic Stabilization upon G7 Membership"
As South Korea and Australia mark the 10th anniversary of their Free Trade Agreement (FTA) this year, they have agreed to strengthen cooperation as a 'one team' in future industries such as startups, artificial intelligence (AI), and carbon neutrality, beyond just expanding trade. The Korean side stated that overcoming the electric vehicle chasm could be achieved through bilateral 'mineral cooperation.' Both countries also agreed that joint membership in the Group of Seven (G7) could contribute to stabilizing the global economy.
The Korea Economic Association announced that on the 2nd (local time), together with the Australia-Korea Business Cooperation Committee (AKBC), it held the '45th Korea-Australia Economic Cooperation Committee' in Perth, Australia, and released a joint statement with these contents. On the Korean side, attendees included Jang In-hwa, chairman of POSCO Group and chair of the Korea-Australia Economic Cooperation Committee, Jeong In-gyo, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, Shim Seung-seop, Ambassador to Australia, and Kim Chang-beom, Executive Vice Chairman of the Korea Economic Association. On the Australian side, participants included Martin Ferguson, chairman of AKBC, Roger Cook, Premier of Western Australia, Don Farrell, Australian Minister for Trade and Tourism, Madeleine King, Australian Minister for Resources, and Jeff Robinson, Ambassador of Australia to Korea.
Companies also participated. On the Korean side, about 100 representatives from POSCO Holdings, Korea Eximbank, GS Engineering & Construction, LX International, Hyosung Heavy Industries, HD Hyundai Heavy Industries, LG Energy Solution, SK E&S, and SK Earthon attended. On the Australian side, around 100 companies participated, including Wesfarmers, a retail company among Australia's top 15 by market capitalization, energy company Woodside Energy, and mining company Rio Tinto.
Chairman Jang In-hwa said in his opening remarks, "The two countries, which have cooperated centered on resources, are expanding their cooperation scope as key partners in carbon neutrality," adding, "We hope to lead the global market through innovation in various fields such as AI, aerospace, food, and culture, securing greater competitiveness and opportunities." Chairman Ferguson stated, "Connecting people is very important to strengthen cooperation and sustain the partnership between the two countries," and hoped that the Korea-Australia Economic Cooperation Committee would serve as an opportunity to connect more businesses.
Director-General Jeong In-gyo, in his congratulatory remarks, said, "We highly appreciate the contribution of the Korea-Australia Economic Cooperation Committee to bilateral economic cooperation," and added, "In the midst of recent global uncertainty crises, we must strengthen future-oriented cooperation in areas such as supply chains, clean economy, digital, and defense industries to take bilateral cooperation to the next level."
During this committee meeting, cooperation plans were discussed regarding critical minerals, AI and startups, defense industry, traditional industries, and green transition.
First, regarding critical mineral cooperation, Kim Jun-hyung, Head of Secondary Battery Materials at POSCO Holdings, introduced POSCO Group's secondary battery materials business strategy. Kim said, "Although uncertainties remain due to the U.S. presidential election, our goal is to jointly build a supply chain eligible under the U.S. Inflation Reduction Act (IRA) with Australia," adding, "Through cooperation with Australian partners including Pilbara Minerals, we will secure new high-quality critical mineral resources and overcome the electric vehicle chasm period."
Kim Jandi, a team leader at Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), introduced the 'Mine Supply Chain Stabilization Fund.' Based on the 'Supply Chain Stabilization Act' enacted in February, a fund worth 5 trillion won was established, and supply chain stabilization bonds will be issued. Kim said, "The goal is to support the entire Australian critical mineral value chain?from mineral smelting, refining, transportation, manufacturing to recycling?through this fund."
In the AI and startup session, digital innovation companies explored various cooperation possibilities with Australia. Since Australia has adopted data AI-based solutions, it was presented that Korean companies could benefit from cost reduction and improved supply chain sustainability in responding to Environmental, Social, and Governance (ESG) management.
In the defense industry and aerospace session, it was observed that bilateral cooperation would gain greater significance from a geopolitical perspective. The session, chaired by Vice Chairman Kim Chang-beom, featured introductions of several aerospace projects currently underway in Australia.
Woo Kwon-sik, Executive Director at HD Hyundai Heavy Industries, introduced the latest Korean Navy frigate and expressed a strong intention to promote localization through cooperation with the shipbuilding industrial district in Henderson, Australia. Woo explained that during the multinational maritime exercise 'Rim of the Pacific Exercise (RIMPAC) 2020,' the frigate was delivered two months ahead of the contract schedule to partner countries, stating, "Early delivery and localization strategies tailored to consumers are the keys to success."
In their joint statement, both sides emphasized the need for joint participation in the G7. The statement also included efforts to resolve regulatory uncertainties to expand investment in decarbonization transition, strengthen defense and aerospace cooperation for regional security, and continuously innovate traditional industries such as agriculture and tourism.
On the day following the joint meeting, the 3rd, a mineral roundtable was held with Australian Minister for Resources Madeleine King invited, and a trade roundtable was held with Australian Minister for Trade and Tourism Don Farrell invited. Businesspeople from both countries are expected to share business status and challenges and discuss new areas of cooperation at these meetings.
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