Hong Nam-ki "Preparing for CPTPP Accession, System Improvements"... Establishment of Ministerial-Level 'Economy + Security' Meeting Body

The 224th Ministerial Meeting on External Economic Affairs

Hong Nam-ki, Deputy Prime Minister for Economy, is presiding over the Ministerial Meeting on External Economy held at the Government Seoul Office on the morning of the 27th. 2021.9.27 [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seonhee] Following China's recent application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and amid speculation about the possible return of the United States, the Korean government has revised related domestic systems in preparation for joining. Additionally, the government announced on the 27th that it has established a ministerial-level meeting body to discuss economic and diplomatic security issues in connection with the intensifying global technological hegemony competition.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held the 224th Ministerial Meeting on External Economic Affairs at the Government Seoul Office that morning and stated, "The government has prepared domestic system improvement plans in four major areas?sanitary and quarantine, fisheries subsidies, digital trade, and state-owned enterprises?to proactively prepare for joining the CPTPP, which demands high-level trade norms. Based on this, we plan to further strengthen efforts to create a favorable external environment."

He added, "We will also strengthen cooperation systems with major CPTPP member countries and friendly nations. Efforts to expand free trade agreement (FTA) networks with key hub countries and those with significant cooperation enhancement effects (such as the New Southern Policy, New Northern Policy, Middle East, and Latin America) will be pursued concurrently."

The total economic scale of current CPTPP participating countries accounts for about 13% of the world's gross domestic product (GDP). When combined with the United States, China, the United Kingdom, and Korea, it is estimated to exceed half of the global GDP.

In addition, the government decided to establish the "External Economic Security Strategy Meeting," a meeting body linking and integrating external economic and security issues chaired by the Deputy Prime Minister, amid concerns that the intensifying global technological hegemony competition could threaten the competitiveness of global companies depending on security situations.

This meeting body will regularly convene with participation from ministers of economic and diplomatic security-related ministries and standing members of the National Security Council (NSC). Previously, issues combined with diplomatic security were addressed mainly through the NSC standing committee, but external economic issues will now be discussed in the meeting chaired by the Deputy Prime Minister.

Deputy Prime Minister Hong explained the background for the establishment, saying, "The recent rapid changes and latent uncertainties in the global economic environment?such as post-COVID market preemption competition, technological hegemony competition, acceleration of carbon neutrality, and fierce supply chain (GVC) restructuring?always pose risks and may act as constraints. Especially as competition among countries linked to economy, technology, and security intensifies, strategic and political judgments need to be considered together in economic response positioning."

Meanwhile, regarding the visible shift in monetary policy stance among major advanced countries, including the U.S. Federal Reserve's indication of asset purchase tapering within the year, Deputy Prime Minister Hong said, "There remains a possibility that accumulated debt risks, arising from abundant liquidity during the COVID response, will emerge mainly in emerging markets. We will thoroughly check for risk factors such as 'gray rhinos' (risks that are foreseeable but often overlooked) across the external sector and prepare contingency plans in advance to ensure full readiness."

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