President says he seeks membership despite political risks, slim prospects of deal during his term
Joining a major trans-Pacific trade pact is essential for South Korea, but farmers and fishers will not be left to weather the fallout without support, President Lee Jae Myung said Monday.
"We must no longer unilaterally force losses and suffering on those who lack power or are few in number," Lee said Monday during a meeting with around 110 farmers and fishers at Cheong Wa Dae in Seoul.
It marked the first time in eight years that a sitting South Korean president had met with a large group of farmers and fishers to hear their mounting concerns over pressing issues, including a nationwide farmland survey.
But it was South Korea's potential entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a 12-nation free trade pact, that took center stage.
"Primary industries should no longer be viewed through the lens of comparative advantage, but rather as industries vital to the Republic of Korea's national security and survival, as well as strategic industries," Lee said, referring to South Korea by its official name.
"As for joining the CPTPP, which I know is a matter of great concern to all of you, I have instructed officials not to apply for membership this year and to decide on our next steps only after extensive consultations with you."
Lee also underscored the inevitability of joining the CPTPP to remove barriers facing South Korean companies seeking to export or expand overseas due to a lack of trade agreements.
"For the Republic of Korea as a whole, an open, trade-oriented economy that depends heavily on exports, expanding access to global export markets — what we call our economic territory — is extremely important," Lee said.
"We cannot avoid this. The only questions are when to proceed, who will handle it and how to compensate for (potential losses)," Lee added.
Lee said that while the government should seek consensus, it could not abandon policies necessary for the country's broader interests simply because some groups opposed them.
"These are difficult issues, but they are things we must still do," he said. "We cannot simply abandon what needs to be done because some people oppose it or fiercely resist it. But we must ensure that no one is treated unfairly."
Lee stressed that "all policies in the Republic of Korea must ensure that no sector is left with grievances, no individual suffers injustice and no region is unfairly treated."
"A society can only be considered fair and just when those who make extraordinary sacrifices receive compensation commensurate with those sacrifices," he said.
Lee said the government must treat its commitment to compensate those hurt by national policies as a "clear obligation," noting that such promises are essential to building public trust and securing support for difficult decisions.
Lee cited the government's pledge to make up for a roughly 700 billion won ($528.3 million) shortfall in a rural cooperation fund established following South Korea's 2015 free trade agreement with China. Only about 325.5 billion won of the promised 1 trillion won has been raised, largely because the fund relied on voluntary corporate contributions.
Lee floats ‘export levy’ on CPTPP beneficiaries
Lee floated the idea of imposing an "export levy" to compensate farmers and fishers for potential losses. Lee made a similar proposal in a Sept. 29 post on X, suggesting a levy on a portion of increased exports resulting from free trade agreements to offset losses.
"I think we should consider something like an export levy, rather than relying on the approaches we've taken so far, although I haven't discussed the practical details with officials," Lee said. "If someone benefits at the expense of others, they should at least bear some of the cost. I don't think anyone would reject that. It's only common sense."
A government report released in late September projected that joining the pact would boost South Korea's real GDP by 0.38 percent over 10 years, while reducing agricultural, forestry and fisheries production by about 850 billion won annually over 15 years.
Lee acknowledged that pursuing CPTPP membership could come at his own political cost, as the accession process requires the consent of all 12 member countries and could take years to complete.
"We don't even know how many years it might take. The easiest choice for a politician would be not to pursue it at all," Lee said, noting that accession was unlikely to be finalized during his presidency.
"I could end up facing criticism with nothing to show for it. But even so, for the sake of the Republic of Korea as a whole, we have to lay the groundwork for the next step."
On Oct. 8, Lee officially instructed the government not to apply for CPTPP membership this year, saying consultations with farmers and fishers should take precedence over meeting an application deadline.
The decision followed Cabinet discussions in which officials said South Korea would need to announce public hearings by mid-October for its potential CPTPP membership to be discussed at the bloc's November ministerial meeting.
dagyumji@heraldcorp.com
