[Economic Organization Shin Ji-hyung] Yoon, Overseas Networks on Trial Amid Strengthened Korea-US-Japan Cooperation

Economic Organizations Take Action...New Government Supports Strengthening Economic Cooperation by Leveraging Strengths

[Asia Economy Reporter Park Sun-mi] As President Yoon Suk-yeol emphasizes strengthening trilateral cooperation among South Korea, the United States, and Japan on supply chains and economic security, the overseas networks of various economic organizations representing business interests have come under scrutiny. The heads of economic organizations are actively supporting the new government’s efforts to solidify economic cooperation systems with countries around the world by personally overseeing the resumption of overseas network exchanges that had been halted due to COVID-19.

Federation of Korean Industries Successfully Holds Korea-Japan Business Meeting... Plans for Korea-US Business Meeting Underway

According to the business community on the 9th, the Federation of Korean Industries (FKI), led by Chairman Huh Chang-soo, resumed the Korea-Japan Business Meeting offline after three years on the 4th with the Japan Business Federation (Keidanren), and is planning to hold the Korea-US Business Meeting in October. The Korea-US Business Meeting is a private economic cooperation discussion jointly hosted by the FKI and the U.S. Chamber of Commerce, and along with the Korea-Japan Business Meeting, it is a representative program through which the FKI has maintained regular relations for a long time. Major companies, associations, and institutions from South Korea and the U.S. have participated, with meetings held alternately in Seoul and Washington from September to November each year; however, in 2020 and 2021, these were replaced by virtual meetings due to COVID-19.

Huh Chang-soo, Chairman of the Federation of Korean Industries, is delivering the opening remarks at the special dialogue with former Finance Ministers titled "Economic Policy Directions Hoped for from the New Government," held on the 9th at the Federation of Korean Industries Conference Center in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

However, this year, given the numerous issues related to Korea-US cooperation on global supply chains, efforts are underway to hold the meeting offline in October for the first time in three years. The main discussion topics include ▲ Korea-US trade issues (such as easing U.S. government anti-dumping and tariff import restrictions on Korean companies, revising and implementing the Korea-US FTA), ▲ international trade (WTO reform issues, progress and outlook of the U.S.-China trade war, restoration of free trade order), ▲ industrial cooperation (regulatory reforms in new technologies and growth sectors, promoting mutual investment between the two countries, discovering post-Korea-US FTA cooperation agendas), and ▲ security (economic sanctions on North Korea, the situation on the Korean Peninsula). The FKI is also considering attending the Korea-Canada Business Meeting and Korea-Taiwan Economic Cooperation Committee in September, as well as the Korea-Australia Business Meeting at the end of the year.

As the largest private economic organization in South Korea and once the 'eldest brother' among economic organizations, the FKI experienced ups and downs after being embroiled in the 2016 political scandal, leading to exclusion from various organizational events. However, with the Korea-Japan Business Meeting resuming this month after three years, attended by presidents of major conglomerates such as Samsung, LG, Hyundai Motor, and SK, and with President Yoon Suk-yeol personally arranging meetings with the Keidanren delegation, expectations are growing that the FKI’s well-established overseas networks could serve as a foundation for strengthening trilateral cooperation among South Korea, the U.S., and Japan.

Korea Chamber of Commerce and Industry’s Strength Lies in Cooperation Committees in 51 Countries Worldwide

The Korea Chamber of Commerce and Industry (KCCI), led by Chairman Choi Tae-won, is taking the lead in opening channels for private economic cooperation based on its cooperation committee networks established in 51 countries worldwide, including Asia-Pacific (18), Europe (10), Latin America (9), the Middle East (7), and Africa (7). As the only comprehensive economic organization in South Korea with nationwide and global business networks, it can generate synergy by combining its accumulated experience, expertise, and originality across all industrial sectors with its overseas networks.

[Image source=Yonhap News]

Separately from the cooperation committee channels, Chairman Choi met last month in Tokyo with the Japan Chamber of Commerce and Industry president and the Keidanren chairman to discuss resuming Korea-Japan economic cooperation and proposed restarting the Korea-Japan Chamber of Commerce Presidents’ Meeting, a business exchange event. Accordingly, plans are underway to hold the Korea-Japan Chamber of Commerce Presidents’ Meeting in Busan this November. This meeting was held alternately in Korea and Japan every fall until 2017 but was suspended in 2018 due to trade tensions that strained bilateral relations. If held this year, it will be the first meeting in five years since 2017, supporting President Yoon’s vision of improving relations through Korea-Japan economic cooperation.

The KCCI is also actively supporting the 2030 Busan Expo bid as the secretariat. On the 5th, it held a Korea-Mexico Business Roundtable inviting the Mexican Foreign Minister to commemorate the 60th anniversary of Korea-Mexico relations, discussing cooperation between companies of both countries and seeking support for the Busan Expo. Additionally, Chairman Choi, who serves as the private sector chairman for the 2030 Busan Expo bid support, personally visited Paris last month to promote the bid.

Korea Employers Federation Hosts Dinner for Japanese Delegation in May, Discusses Korea-Hong Kong Economic Cooperation This Month

The Korea Employers Federation (KEF) is strengthening private diplomacy by hosting business meetings with ambassadors from major countries on behalf of the Korean business community. These meetings provide a platform for Korean companies and foreign ambassadors to exchange opinions on resolving difficulties related to overseas expansion and expanding mutual investment, effectively supporting the new government and businesses in enhancing overseas cooperation. This year, in February, KEF held a chairman-level meeting with the EU delegation, discussing key topics such as ▲ information exchange between Korean companies and the EU delegation amid the worsening Ukraine crisis and ▲ business community recommendations regarding the implementation of the EU Carbon Border Adjustment Mechanism.

With the COVID-19 situation easing, KEF plans to actively hold ambassador-invited business meetings in the second half of this year. Separately, KEF Chairman Son Kyung-sik visited the Heritage Foundation in Washington D.C. in April to exchange views on Korea-US issues and economic cooperation measures. In May, KEF hosted a dinner for the Japanese delegation visiting Korea for President Yoon’s inauguration, providing a venue for political and business figures from both countries to discuss restoring Korea-Japan relations.

On the 14th of this month, KEF plans to meet with a Hong Kong trade delegation led by Leung Chun-ying, Vice Chairman of the Chinese People's Political Consultative Conference, to discuss Korea-Hong Kong economic cooperation. Chairman Son has also served as Korea’s member of the APEC Business Advisory Council (ABAC) since 2018, participating in discussions on major economic issues in the Asia-Pacific region and jointly submitting business community proposals to governments worldwide to promote international cooperation and free trade.

The Korea International Trade Association (KITA) also formed a delegation led by Chairman Koo Ja-yeol last month to visit the U.S., holding a series of meetings with U.S. Congress members and the National Economic Council to discuss ways to strengthen Korea-US supply chain cooperation.

An official from the business community said, "With growing economic uncertainty and the urgent need for economic cooperation with countries worldwide, the new government is emphasizing diplomatic and economic cooperation, creating an atmosphere where economic organizations are striving to maximize their capabilities. While it may appear as a power struggle on the surface, each economic organization has its own overseas networks and strengths, and there is a strong will to demonstrate their roles by maximizing these early in the new government’s term."

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