"Strengthening the New Southern Policy for Korea-ASEAN Economic Cooperation"

KCCI 'ASEAN-Korea Chamber of Commerce Joint Association Chairpersons Meeting'

Korea Chamber of Commerce and Industry

[Asia Economy Reporter Dongwoo Lee] There has been a call to strengthen the New Southern Policy, including the healthcare sector, to enhance economic cooperation between Korea and the ASEAN region.

The Korea Chamber of Commerce and Industry (KCCI) held the ‘ASEAN Korcham Federation Chairpersons Meeting’ on the 22nd at the Four Seasons Hotel in Seoul, inviting Ahn Byunghwa, Deputy Head of the New Southern Policy Special Committee, together with the Ministry of Trade, Industry and Energy. The meeting was organized as a forum where chairpersons of the Korea Chambers of Commerce and Industry (Korcham) in ASEAN countries, experts, and businesspeople gathered to explore support measures for local companies and discuss changes in investment and consumer trends.

Kim Heungsu, Chairman of ASEAN Korcham (Chairman of Ho Chi Minh Korcham, Vietnam), said in his welcoming remarks, “With the signing of the Regional Comprehensive Economic Partnership (RCEP), the New Southern Policy is expected to accelerate and bear fruit,” adding, “We hope that regional trade and investment expansion and economic cooperation will be strengthened to overcome the COVID-19 crisis.”

In the keynote speech that followed, Deputy Head Ahn described the ‘New Southern Policy Plus Plan,’ saying, “This year marks the 10th anniversary of the establishment of the ‘strategic partnership’ between ASEAN and Korea, making it a meaningful year,” and evaluated, “The newly launched New Southern Policy Plus strategy by the government will serve as an opportunity to upgrade the vision and achievements of the New Southern Policy to the next level.”

Deputy Head Ahn emphasized the seven key tasks of the New Southern Policy Plus, stating, “New cooperation areas such as comprehensive healthcare cooperation, human resource development, and support for rural and urban infrastructure development present great opportunities for companies operating locally.”

There was also a claim that with the rise of digital and untact consumer trends, domestic companies should leverage the Korean Wave (Hallyu) fever and K-quarantine as a foothold for entering the ASEAN market.

Shin Yunseong, Director of the New Southern Policy Office at the Korea Institute for Industrial Economics and Trade, in his presentation on ‘ASEAN Trade Environment and Consumer Market Trend Changes,’ said, “The core of RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is ASEAN,” and predicted, “Vietnam, Indonesia, and Myanmar, which have competitive advantages in wages, logistics costs, and electricity costs, will emerge as new production bases.”

Director Shin stressed, “After COVID-19, hygiene and health safety have become the top priorities in the New Southern region as well,” adding, “Combined with the Korean Wave fever in ASEAN, the perception of Korean products is improving through K-quarantine, so this should be used as an opportunity to strengthen brand power through a premium strategy in the future.”

There was also an opinion that local subsidiaries need to strengthen their own capabilities for localization. Gil Youngmin, a lawyer at Sejong Law Firm’s Ho Chi Minh office, introduced promising investment sectors, dispute cases, and corporate precautions through ‘ASEAN Investment Trends and Legal Dispute Response Measures in the COVID-19 Era.’

Lawyer Gil said, “Overseas businesses in Southeast Asia have a higher possibility of disputes than domestic businesses, so it is necessary to understand local laws and systems and prepare strategies and investments in advance for the worst-case scenarios,” and urged, “Please utilize consulting services on fintech, startups, industrial complex development, logistics, and one-stop services on Korean and local legal issues.”

Following this, success stories of companies entering ASEAN were presented, and chairpersons of Korcham from each country participated via video to discuss the local trade and investment environment and future entry strategies in each ASEAN country. The meeting was broadcast live online.

Kang Homin, Director of the International Headquarters at KCCI, said, “ASEAN countries such as Vietnam, Malaysia, and Singapore play a linchpin role in RCEP and CPTPP,” adding, “With the post-COVID-19 global value chain restructuring expected to accelerate, I hope today’s meeting will serve as an opportunity for our companies to gain a better understanding of ASEAN’s investment environment and local changes in advance.”

This content was produced with the assistance of AI translation services.