SINGAPORE -- The leaders of South Korea and Singapore on Tuesday agreed to ensure resilience in the supply chain as the two countries signed a new bilateral arrangement to weather supply chain crises especially in advanced manufacturing, biotechnology and energy.
The nonbinding supply chain partnership arrangement was signed during President Yoon Suk Yeol's state visit to the city-state as part of a weeklong trip to Southeast Asia.
In a press conference held Tuesday at the Parliament House of Singapore after Yoon's summit with Singaporean Prime Minister Lawrence Wong, Yoon said the two leaders agreed to "address supply chains for strategic goods through close cooperation" as they "resolved to confront growing global economic instability."
Wong told the conference that the bilateral ties between Korea and Singapore "will continue to grow from strength to strength," as he vowed to work with Yoon to "take our bilateral ties to greater heights."
"In this dangerous, more volatile and more troubled world, partnerships between like-minded countries are more important than before," Wong added.
According to the document, signed by the trade authorities of Seoul and Singapore, the two countries agreed to hold an emergency meeting within five days of a global supply chain disruption.
For example, in the event of a pandemic outbreak, the two countries may hold an emergency meeting to discuss a possible shortage of medications or protective gear and explore ways to address the shortage in any of the parties, according to Yoon's office.
As the two countries detect signs of supply chain disruption, such as surges in commodity prices or logistic abnormalities, high-ranking officials of South Korea and Singapore will hold talks over the phone to exchange information. This will allow South Korea to be aware of any possible disruption in Singapore's logistics operations and share the information with South Korean companies, according to Yoon's office.
In normal times, the two countries will be engaged in activities for supply chain emergency preparedness, such as mock exercises and supply chain mapping, among others.
Yoon said at the conference that the agreement would serve as a basis to "enhance partnership and respond to disruptions together" in terms of supply chain cooperation in the fields of biotechnology, energy and advanced manufacturing.
Singapore is the first partner with which South Korea signed such a document, said Park Chun-sup, senior presidential secretary for economic affairs, in a briefing.
Park also said the signing of the new arrangement was a step forward from the multilateral supply chain agreement signed by 14 partners of the US-led Indo-Pacific Economic Framework for Prosperity, which had served as the basis for supply chain cooperation until now.
Moreover, South Korea and Singapore signed two memorandums of understanding to stabilize the procurement of liquefied natural gas that would benefit both countries.
The first, an LNG swap deal, could "promote a stable global energy supply chain," given that South Korea is the world's third-largest LNG importer and Singapore is a major LNG trading hub, Yoon said.
The other, a joint purchasing agreement, would allow both countries to buy the gas at a lower price than they could get if they bought it separately.
The two countries' signing of an agreement on technology cooperation will spur joint research projects in advanced manufacturing, futuristic mobility and artificial intelligence, according to Yoon.
South Korea also recognized the signing of an extradition treaty with Singapore, allowing the transfer of criminal suspects between the two countries.
The two countries also expressed their commitment to revising the bilateral aviation accord by 2025 to invigorate people-to-people exchanges.
According to the two leaders, South Korea and Singapore are working to establish a strategic partnership next year, which Yoon said could stimulate the growth of future-oriented elements of the two economies, including AI and startups.
Alongside Wong, on Tuesday, Yoon met Singaporean leaders such as President Tharman Shanmugaratnam and Senior Minister Lee Hsien Loong, who formerly served as the prime minister in the country for two decades.
Later that same day Yoon attended a joint business forum in Singapore with South Korean business leaders, including Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor's Executive Chairman Chung Euisun, LS Chairman Koo Ja-eun, among others. There, Yoon highlighted the potential for collaborative efforts of South Korea's manufacturing industry base and Singapore's technology prowess in AI and biotechnology.
Yoon is poised to leave Singapore on Wednesday to attend the ASEAN summit in Vientiane, Laos.
