Hong Nam-ki: "Positive Discussions on Participation in US-led Indo-Pacific Economic Framework"

6th Foreign Economic Security Strategy Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is presiding over the 6th External Economic Security Strategy Meeting held at the Government Seoul Office Building on the 8th. April 8, 2022. Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 8th, "Discussions regarding the U.S. Indo-Pacific Economic Framework (IPEF) are expected to become more concrete and accelerate," adding, "We will discuss our position positively and future plans for participation."

Deputy Prime Minister Hong made these remarks while presiding over the Foreign Economic Security Strategy Meeting at the Government Seoul Office that morning. IPEF is a comprehensive economic alliance led by the U.S. administration, promoting trade facilitation, digital economy and technology standards, supply chain resilience, decarbonization and clean energy, infrastructure, and labor standards across six sectors. Since China is relatively weak in areas such as labor and environment, the international community interprets this as the U.S. initiative to curb China's expanding economic influence.

The government also plans to expedite joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Despite strong opposition from the agriculture and fisheries sectors demanding withdrawal from CPTPP accession, some speculate that the government might delay the joining timeline again. However, Deputy Prime Minister Hong reaffirmed the existing stance, stating, "Within the broad framework of 'application for accession during this government, accession negotiations in the next government,' we will conduct a final review of additional damage support and future action plans." He had previously indicated April as the timing for the CPTPP accession application.

Furthermore, amid concerns over supply chain disruptions due to recent COVID-19 outbreaks and lockdowns in major Chinese cities such as Shanghai, Deputy Prime Minister Hong said, "Although the immediate ripple effects are not significant, if prolonged, shocks to domestic production sites are a concern, so we will discuss inspections and preparations by region and item." According to the Ministry of Economy and Finance, key Korean industries such as semiconductors and displays have yet to be significantly affected, but some items related to secondary batteries and petrochemicals are experiencing delays in shipment and loading, causing disruptions in domestic imports.

Regarding the recent economic situation, Deputy Prime Minister Hong stated, "With the global supply chain severely weakened and the geopolitical crisis caused by the Ukraine situation overlapping, complex risk factors such as 'growth slowdown + inflationary pressure' are accumulating across the global economy," adding, "This impact is not limited to the economic domain but spreads widely across economic, diplomatic, and security interlinked areas, so a comprehensive and strategic response is essential."

He continued, "Especially given our open trade economy structure, the importance of foreign economic security issues cannot be overstated," emphasizing, "Moreover, during this government transition period, there must be no gaps or lapses in response." He added, "The government has closely consulted with the transition team on key issues such as price stabilization to prevent public anxiety and avoid the emergence or accumulation of risk factors," and concluded, "Regarding foreign economic security issues, we will meticulously consult, coordinate, and take measures to ensure no gaps or delays."

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