ASEAN-REPUBLIC OF KOREA

ASEAN and the ROK recognize the need to further strengthen existing economic relations as emphasised during the First Dialogue Meeting in May 1993 and during the Post Ministerial Conferences (PMC) 6+1 Session with the ROK, Singapore in July 1993.

Trade volume between ASEAN and ROK has been growing rapidly over the last few years. It has increased from US 5.5 billion in 1987 to US$ 15.6 billion in 1992, The growth in trade is expected to continue in the coming years, making the ROK an important trading partner, along with the US, Japan and the EU. Despite the rapid growth in trade, problems of market access in the form of tariff and non-tariff barriers still remain to be resolved.

ROK imports from ASEAN have largely been confined to primary products such as timber, natural gas, rubber, coal and oil. ASEAN has expressed interest in increasing ASEAN exports to ROK in agricultural products, processed goods, semi-manufactured and manufactured goods. On the other hand, the ROK's exports to ASEAN are dominated by industrial products such as machinery and mechanical appliances, electrical equipment, textile and steel products.

Although direct investment from ROK to ASEAN still remains small when compared with that from Japan, the US and the EU, recent trends indicate that there has been some gradual increase. For instance, cumulative investment to ASEAN increased from US$ 304 million in 1989 to US$ 875 million in 199 1, with a further increase to US$ 1.3 billion by 1992. The total investments for 1992 represents approximately 25% of ROK overseas investment or the second largest ROK overseas investment after the US.

In investment cooperation. ASEAN has stated that it would like to see the relocation of industries relating to high fashion garments, electronic consumer products, rubber footwear, tyres, wooden and cane furniture and some selected chemical and petrochemical products to the ASEAN region together with the transfer of technology and modem manufacturing techniques procedures.

Some projects on investments under ASEAN- ROK implemented in 1993/1994 were the "Survey on Investment Demand of ASEAN Industry (Phase 1)" and "A Mission to Study the Investment Climate to ASEAN Countries" which aim to provide Korean firms with appropriate and useful information on the investment structure, investment climate in ASEAN and the prospects of joint venture with ASEAN firms including those with third countries. The results of the survey are expected to be used as a basic framework for ASEAN-ROK industrial cooperation in the 21st century.

ASEAN and ROK agreed to promote closer cooperation in tourism as an important aspect in promoting understanding between peoples of ASEAN and ROK. The successful implementation of ASEAN Travel Fair in Seoul in April 1993 was one such effort while the project on Korean Language Training Programme for Trainers in the Tourism Industry (Phase 11) was another. The project entitled " Exchange and Training of Experts in the Field of tourism" will be implemented. by the second half of the year 1994.

In the area of the development cooperation, five projects relating to trade, investment, tourism, human resource development programmes and transfer of technology were completed in 1993. These projects were the HRD Programme, Technical Transfer Programme in Agricultural Development, Sellers-Buyers Exchange Programme, Workshop on Formulation of Biotechnology Atlas and Survey on Investment Demands of ASEAN Industry, Phase 1. The Sellers-Buyers Exchange Programme would provide opportunities for ASEAN and Korean businessmen to enhance trade relations; the Survey on Investment Demands of ASEAN Industry, Phase I would establish contacts to promote development in the ASEAN electronic industry; and the Technical Transfer Programme in Agricultural Development would enable the ASEAN participants to gain knowledge in planning and implementing agricultural development.

The following eight projects have been approved for implementation:
  1. A Proposal of the two Workshops for ASEAN Countries

    1. Workshop on Economic and Policy Coordination

    2. Workshop on Private Sector-Led Development Strategies and its relevance to ASEAN Countries

  2. Study and Training Programme of Korean Strategies for Trade Promotion

  3. Mission to Study Investment Climate in ASEAN countries.

  4. Survey of the Investment Demands of the ASEAN Countries, Phase 11

  5. Exchange and Training of Experts in the Field of Tourism

  6. Youth Exchange and Cooperation Project

  7. Research Proposal on "Emerging Issues in Korea's Trade and Investment Relations with Southeast Asia"

  8. Workshop on Industrial Use of Marine Biological Resources.
Of the eight approved projects, two projects, namely, "A Mission to Study the Investment Climate of ASEAN Countries", and "Workshop on Industrial Use of Marine Biological Resources", have been completed. Research projects in the trade sector entitling "Emerging Issues in Korea's Trade Investment Relations with Southeast Asia is currently being conducted. This two-year research programme, among others, will analyze the patterns and implications of the rapidly evolving economic relations between Korea and ASEAN.

Funding for the above projects will be provided by the ASEAN-ROK Special Cooperation Fund (SCF) which was established in 1990 and to which the ROK has pledged US$8 million to cover the five year period 1990-1994.

Discussions on the setting up of an ASEAN Promotion Centre in Seoul to promote culture, information and tourism are continuing.