"Proposal for Early Conclusion of Korea-Taiwan Investment Protection and Double Taxation Avoidance Agreement... Suggestion for CPTPP Membership"

[Asia Economy Reporter Jeong Hyunjin] The Korea-Taiwan Economic Cooperation Committee, which serves as a private economic cooperation channel between Korea and Taiwan, held a joint meeting on the afternoon of the 7th to discuss cooperation measures on various topics including semiconductors, smart cities, and bio-healthcare.

The Federation of Korean Industries (FKI) co-hosted the 45th Korea-Taiwan Economic Cooperation Committee meeting with the Taiwan International Economic Cooperation Association (CIECA) in a hybrid online and offline format. At this meeting, the FKI appointed Kim Jun, Chairman of Kyungbang Co., Ltd., as the new Korean co-chair of the committee. Chairman Kim succeeded former FKI Chairman and Korea-Taiwan Economic Cooperation Committee Chairman Kim Gakjung, becoming the second-generation co-chair.

At the meeting, Chairman Kim proposed institutional tasks to strengthen Korea-Taiwan economic cooperation, including the conclusion of an "Investment Protection Agreement" and a "Double Taxation Avoidance Agreement," as well as the simultaneous accession of both Korea and Taiwan to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It is expected that the conclusion of the investment protection and double taxation avoidance agreements will increase mutual investment between the two countries. Furthermore, if both countries join the CPTPP simultaneously, the FKI anticipates that they will be able to strengthen solidarity and create synergy effects in negotiations with countries that have already joined.

Kang Younghoon, Representative of the Korean Representative Office in Taipei, stated, "Korea and Taiwan are natural partners for mutually beneficial economic cooperation due to their complementary industrial structures. Recently, the global supply chain has been rapidly reorganizing, and although this international economic environment presents significant challenges for Korea and Taiwan, there is considerable room for mutual cooperation between companies from both countries in expanding into Southeast Asia and other markets."

During the meeting, cooperation measures in various fields including semiconductors were discussed. Ahn Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, emphasized, "Korea has strengthened the competitiveness of its materials, parts, and equipment industry through the development of semiconductor manufacturing technology, while Taiwan is the world leader in system semiconductor manufacturing technology and continues to expand its manufacturing facilities. We must continue exchanges such as joint industrial research and development and mutual marketing to leverage these complementary strengths for the benefit of the semiconductor industries in both countries."

Kim Jung-gyu, Head of the KOTRA Taipei Trade Center, said, "Although the relationship between Korea and Taiwan is often highlighted as competitive, there are many aspects where they can cooperate and complement each other. Among the top 10 export items from Korea to Taiwan in the first half of this year, six items including semiconductors and semiconductor manufacturing equipment also appeared in the top 10 import items from Taiwan to Korea." Last year, semiconductors accounted for 3.673 billion USD, or 39%, of Korea's total exports to Taiwan, but this proportion increased to 44% in the first half of this year. The share of semiconductors in Taiwan's total imports has remained in the 60% range since 2013 and reached 66.5% in the first half of this year.

Lee Gap-jae, Head of the Smart City Innovation Growth Engine Project Group at the Korea Agency for Infrastructure Technology Advancement, explained Korea's progress and achievements in smart city cooperation and cited the "COVID-19 Epidemiological Investigation Support System" as a smart city application, noting that it reduced investigation time from two days to 10 minutes.

Regarding cooperation in the bio-healthcare sector, Hwang Soon-wook, Director of the Korea Health Industry Development Institute, said, "Both Korea and Taiwan operate national health insurance systems that provide medical benefits to all citizens without discrimination. Based on many commonalities between the two countries, we hope to diversify mutual cooperation and especially expand innovative exchanges in next-generation bio-health fields such as the bio-digital industry." He also added that active cooperation in the development and production of COVID-19 vaccines and therapeutics between Korea and Taiwan is expected.

Kim Jung-gyu, Head of the KOTRA Taipei Trade Center, stated, "Korea has identified customized diagnostics and treatment and digital healthcare as 'Top 10 Promising New Industries,' while Taiwan has designated precision healthcare as one of its 'Six Core Strategic Industries.' Since both countries are expected to enter a super-aged society by 2025, there is significant potential to find cooperation opportunities in the bio-healthcare sector. There are also possibilities for cooperation in digital transformation, carbon neutrality and renewable energy, and electric vehicles."

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