Published : Dec. 10, 2014 - 21:30
South Korea and the Association of Southeast Asian Nations have had ties for 25 years, but each of its members continue to have unique values and things to offer each other.
ASEAN’s roots go back to 1961 when Malaysia, Thailand and the Philippines formed the Association of Southeast Asia. The association then became the foundations for ASEAN, which was launched in 1967 with the participation of Indonesia and Singapore.
The five nations were joined by Brunei in 1984, followed by Vietnam in 1995, Laos and Myanmar in 1997, and Cambodia in 1999 to form the current 10-nation group.
The members are taking the ideals of ASEAN a step further and plan political, security, economic, and social and cultural integration.
Once the integration is completed by the end of next year, the ASEAN community will become the world’s third-largest single market, with a population of 637 million and a combined gross domestic product of $2.4 trillion.
The region’s economy has grown at a faster rate than the world average despite the slowdown in recent years. In 2012, ASEAN nations recorded an average growth rate of 5.3 percent, and 5.5 percent last year.
As such, the region is a valuable trade partner for Korea. Last year, Korea-ASEAN trade totaled more than $135 billion, making the region Korea’s second largest trade partner.
Of ASEAN’s 10 members, Singapore is the largest trade partner despite its diminutive size. At 710 square kilometers, Singapore is roughly 1.2 times larger than Seoul. However, having come in at $32.7 billion in 2013, trade with Singapore accounted for more than 23 percent Korea-ASEAN trade.
The BEXCO convention center in Busan stands ready for the ASEAN-Korea summit on Tuesday. (Yonhap)
As indicated by its large trade volume with Korea, Singapore is a major economic powerhouse whose gross domestic product per capita comes in at over $70,000, more than double that of Korea.
In terms of trade volume, Singapore is followed by Vietnam and Indonesia.
Seoul’s relations with Vietnam have developed significantly despite the relative lateness of diplomatic ties, and the two nations having once fought on opposing sides during the Vietnam War. Both countries are currently negotiating a free trade deal, and Vietnam saw the third-most investment from Korea in 2012 among ASEAN nations. In addition, with nearly 750,000 Koreans visiting Vietnam in 2013, it is the seventh-favorite overseas destination for Korean travelers.
Although trade volume with Indonesia ranks third in ASEAN at about $24.8 billion in 2013, the country is attracting significant investment from Korea. According to Ministry of Foreign Affairs’ data, more than $1 billion worth of investment was made in Indonesia in 2012 alone. The figure is larger than the aggregate Korean investments in Singapore, Cambodia, Thailand, Laos, Myanmar and Brunei in that year.
As one of ASEAN’s “big six,” Malaysia is Korea’s fourth-largest trade partner in the region, and the fourth largest Southeast Asian investment destination. In 2013, trade volume with Malaysia clocked in at $19.7 billion, while Korean entities invested $740 million in the country in 2012.
Although trade with Thailand and the Philippines is comparatively small, respectively ranked at fifth and sixth in ASEAN in 2013, the two nations are among Seoul’s oldest Southeast Asian partners and allies.
The Philippines was the first in the region to establish diplomatic ties with Seoul, 1949, and Thailand the second having opened relations in 1958.
The two countries were also the only two Southeast Asian nations to send combat troops to support South Korea in the 1950-53 Korean War.
The Philippines and Thailand have since become the top two overseas destinations for Koreans. In 2013, more than 1.3 million Koreans headed to Thailand, while almost 1.2 million Koreans visited the Philippines.
Myanmar and Brunei remain something of a mystery to most Koreans. However, Myanmar and Seoul have been building ties, and recently agreed to cooperate in establishing the Myanmar Development Institute, a state-run think-tank modeled on the Korea Development Institute.
Brunei, meanwhile, represents a potentially very valuable partner with its rich natural resources. Brunei is Southeast Asia’s fourth-largest oil producer, and the world’s ninth-largest exporter of liquefied natural gas.
As for Cambodia, its mysterious Angkor Wat temple has become a must see sight for many, drawing thousands of Koreans each year.
While trade with Laos is small and the number of Koreans visiting the country is negligible, the country holds other significance for Seoul.
As the socialist state gradually opens its doors, South Korea-Laos relations have also developed. Although Laos was the last ASEAN nations to form diplomatic ties with Seoul, South Korea has provided the country with $173 million in official development assistance.
Laos is also a major route through which North Koreans escape into the free world. The Southeast Asian country plays such a large role in defections from North Korea that the term “Laos Route” is commonly used, and last year Seoul even dispatched special envoys to restore the route after it was effectively shut down when a number of young North Korean defectors were forcibly repatriated.
By Choi He-suk (cheesuk@heraldcorp.com)