'US-Led Economic Bloc for "De-China" Strategy... South Korea Aware Since November Last Year'

Under US Pressure to Participate, Whole Government Expected to Respond... Preparing to Launch 'Diplomatic Strategy Adjustment Meeting'

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The United States has pressured South Korea to join the Economic Prosperity Network (EPN), which aims to decouple from China. The South Korean government acknowledged that it became aware of various U.S. initiatives, including the EPN, during the 4th Korea-U.S. High-Level Economic Dialogue (SED) held in November last year. Considering that the U.S. conveyed its request for South Korea to participate in the China-decoupling EPN in the name of Keith Krach, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, after about six months, the government plans to respond on an inter-agency level.

On the 22nd, a senior official from the Ministry of Foreign Affairs told Asia Economy in a phone interview, "We are already aware of the U.S. EPN initiative," adding, "If discussions on the EPN's formation become concrete, it will be discussed at various levels within the government, including the Foreign Policy Strategy Coordination Meeting, and communication with the U.S. will be conducted through multiple diplomatic channels."

The government's concerns are expected to deepen. The U.S. bringing the 'economic bloc' EPN, composed of allied countries to isolate China in the global economic hegemony struggle, to the surface could worsen the recovering Korea-China relationship. A senior Foreign Ministry official said, "(Since the U.S. has publicly mentioned it again) it should be seen as a sign of their intention to actively promote the EPN going forward."

The Foreign Policy Strategy Coordination Meeting, launched to address U.S.-China trade conflicts, was held twice last year in July and December but has not convened this year. This coordination meeting includes 15 related ministries such as the Ministry of Foreign Affairs, Office for Government Policy Coordination, Ministry of Economy and Finance, Ministry of Science and ICT, Ministry of Unification, Ministry of National Defense, Ministry of Trade, Industry and Energy, and private experts. However, the Foreign Ministry stated that if the issue expands, discussions could be broadened to an inter-agency level beyond the Foreign Policy Strategy Coordination Meeting.

The Blue House also appears to have been aware in advance that the U.S. is reviewing the EPN initiative. However, since the U.S. plan is still at the review stage, it cannot provide a definitive response on this matter. A Foreign Ministry official also explained, "We understand that the U.S. side is reviewing various initiatives, including the EPN, in the economic sector on a global scale," adding, "Currently, the EPN initiative is understood to be at the review stage."

The EPN is a new U.S.-centered economic bloc linked to former President Donald Trump's China strategy. On the 20th (local time), Under Secretary Krach mentioned during a conference call organized by the State Department's Asia-Pacific Media Hub, "We discussed the EPN initiative for unity among countries such as the U.S. and South Korea," referring to the SED held in Seoul last November. He emphasized that it will consist of countries, companies, and civil society groups with similar positions to the U.S. and will operate based on 'democratic values.'

Lee Tae-ho, Deputy Minister of Foreign Affairs, and Keith Krach, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, are having a conversation at the '3rd Korea-U.S. Public-Private Joint Economic Forum' held on the 7th at the Shilla Hotel in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

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