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Begin New Search Topic Bilateral Relations Content Type Special Report Publishing Institution Korea Economic Institute of America (KEI)

1. Monetizing The Linchpin: Trump's Foreign Policy versus the U.S.-Korea Alliance's Value to Washington

Author:
Kyle Ferrier
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Trump administration’s increased emphasis on the cost of the U.S.-South Korea alliance has called into question its appreciation of Seoul’s contributions and raised concerns about the future of the relationship. Amid this uncertainty, this paper highlights key, yet underappreciated benefits that Washington receives from a strong alliance with Seoul. The cost-centric approach being applied to the U.S.-South Korea relationship follows an overarching trend in U.S. foreign policy under Trump, which the paper terms as “trading intangibles for tangibles.” In effect, the White House greatly underestimates the intangible value of longstanding U.S. foreign policy norms, often leveraging them—and in doing so, undermining them—in favor of short-term economic gains. Though intrinsically more difficult to quantify in dollars, intangible aspects of U.S. foreign policy have much greater financial and economic value to the United States. Consequently, and counterproductively, the Trump administration’s approach may actually prove to challenge the U.S. financially, even in areas where the economy isn’t directly involved, such as the U.S. alliance system. In the case of South Korea, Washington is putting its alliance credibility—consisting of deterrence against Pyongyang and assurance with Seoul—on the line by attempting to extract major financial concessions from Seoul, chiefly through military burden-sharing negotiations. The annual $5 billion contribution the U.S. is reportedly asking South Korea to agree to by the end of the year is a steep jump from the just under $1 billion Seoul agreed to earlier in the year. However, this annual $5 billion is dwarfed by what strong alliance credibility with Seoul provides Washington, which is at risk from the Trump administration’s intensified focus on cost. Still, the challenge remains that the nature of these benefits makes them difficult to quantify in dollars. To bridge this gap, the paper recontextualizes existing monetary figures across an array of areas to illustrate a baseline value of the key security benefits Washington enjoys through a strong U.S.-South Korea alliance—essentially, “tangibilizing” the intangibles. Though the actual list of benefits is far more expansive, the three explored in the paper are: preventing the return of armed conflict on the Korean Peninsula, fostering foreign policy convergence on the Korean Peninsula, and supporting common values in the Indo-Pacific.
Topic:
Security, Foreign Policy, Bilateral Relations, Alliance, and Donald Trump
Political Geography:
Asia, South Korea, North America, and United States of America

2. The Chinese Perception of the U.S.-China-ROK Triangle

Author:
Yun Sun
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since being applied to U.S.-Soviet-China trilateral relations after the Sino-American rapprochement in the early 1970s, the notion/theory of “strategic triangles” has been widely used to examine many trilateral relations. The model of “U.S.-China plus one” is popular among students of U.S.-China relations and, consequently, the policy community has witnessed an increasing amount of scholarship on triangles among U.S.-China-India, U.S.-China-Japan, U.S.-China-Russia, and even U.S.-China-Taiwan. Unsurprisingly, this begs the question whether a strategic triangle could be construed and constructed among the United States, China, and South Korea. Generally speaking, despite the trilateral nature of U.S.-China-ROK relations, the Chinese policy community rarely subscribes to the existence of a strategic triangle among the U.S., China, and South Korea. This is not necessarily because South Korea does not carry the same strategic weight as the two great powers, but more importantly is because China does not see South Korea as possessing the strategic autonomy to act as an independent player in the trilateral relations. Although arguably such autonomy might exist in economic and trade relations, on key political and security issues, the Chinese see South Korea as invariably constrained by the U.S.-ROK military alliance and unable to form its own independent national security policy. In writing about the post-Cold War period with an emphasis on geopolitics, Chinese authors do not often treat South Korean policy or Sino-ROK relations as autonomous. Given the great weight given to the U.S. role, it is important, therefore, to take a triangular approach in assessing these writings centered on South Korea. I do so first explaining in more detail why the “strategic triangle” framework does not apply, then examining views on how this triangle has evolved in a period of rising Chinese power relative to U.S. power and fluctuating U.S.-ROK relations as the leadership in Seoul changed hands, and finally returning to the triangular theme to grasp how this shapes China’s understanding of Seoul’s policies with emphasis on the ongoing Moon Jae-in era.
Topic:
International Relations, Diplomacy, Bilateral Relations, and Geopolitics
Political Geography:
China, Asia, South Korea, North America, and United States of America

3. Doubling Down on the U.S.-South Korea Alliance: Olympics Diplomacy Did Not Breach Trust, but TrumpMoon Confidence Is in Jeopardy

Author:
Leif-Eric Easley
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The U.S.-ROK alliance faced a quickening pace of North Korean provocations in 2016-17, with Pyongyang violating UN Security Council resolutions dozens of times. Those violations included a fourth nuclear test in January 2016, fifth in September 2016, and sixth in September 2017, as well as numerous missile tests of various trajectories from different platforms. North Korea tested intermediate-range missiles overflying Japan and missiles of intercontinental range on lofted trajectories, while developing road-mobile and submarinelaunched ballistic missiles. As policymakers in Seoul and Washington coordinated responses to those provocations, changes in national leadership and domestic political preferences brought into question the bilateral trust the alliance needs to deter conflict, reassure publics, and promote regional cooperation. Elections have consequences, even before votes are cast. Enduring international security alliances are based on shared national interests and a track record of diplomatic commitments and military cooperation. For allies with highly integrated defense policies, such as the United States and South Korea, it is natural for policymakers and citizens to keenly observe the national elections of the other country. Will the next government be a reliable partner, or will it fail to honor existing agreements? Will the incoming leadership improve relations, or will it downgrade cooperation? These questions were being asked before Donald Trump and Moon Jae-in were elected. The search for answers inevitably involves speculation, feeding expectations that are often overly optimistic or pessimistic. Ahead of Trump’s election, his campaign rhetoric questioned the terms and intrinsic value of the alliance to an extent not seen since Jimmy Carter’s 1976 campaign promise to withdraw U.S. troops from the Korean Peninsula. President Moon came to power on the heels of conservative president Park Geun-hye’s impeachment and removal for corruption. Moon’s politics are notably more progressive than Park’s or Trump’s, including a record of pro-engagement policies toward North Korea. Against this backdrop, Kim Jong-un delivered his 2018 New Year’s Day address claiming that North Korea has the ability to hit any U.S. city with a nuclear-armed missile, but that Pyongyang is ready to re-engage Seoul via participation in the Winter Olympics.
Topic:
Security, Diplomacy, Bilateral Relations, Elections, Alliance, Olympics, and Donald Trump
Political Geography:
Asia, South Korea, North America, Korea, and United States of America

4. Progress and Implications of the China-Korea FTA

Author:
Li Si-qi, Tu Xin-quan, and Liu Bin
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The article focuses on the China-Korea FTA, analyzing the background of China-Korea bilateral economic relations, the characteristics of the China-Korea FTA and more importantly, the implications and future prospect of this free trade pact. So far, the China-Korea FTA is considered to be the most comprehensive compared with China's previous FTAs and may be the largest in trade terms among all the FTAs concluded by Korea and China, playing a positive role in advancing economic integration in the Asia-Pacific region. However, with lots of exceptions to tariff elimination and market access, as well as a 20-year transition period, the present version of the China-Korea FTA is far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment rules. The recent bilateral diplomatic tensions due to the decision of deploying the THAAD missile system by the Korean government may also jeopardize bilateral economic ties between China and Korea, and further increase uncertainties of the China-Korea FTA. It remains to be seen whether the Chinese and Korean governments will handle this issue smoothly under the present sensitive political atmosphere and achieve substantial progress in follow-up FTA negotiations on services and investment.
Topic:
Diplomacy, Economics, Bilateral Relations, and Regional Integration
Political Geography:
China, Asia, South Korea, and Korea

5. Korea's Economic Relations with Japan

Author:
Kim Gyu-Pan
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Korea's economic relations with Japan, which were re-established as a result of the diplomatic normalization between the two countries in 1965, have transformed from dependent to interdependent. The extraordinary economic growth that Korea accomplished during the post-war period was largely due to intermediate goods imported from Japan, and technical cooperation and joint ventures with Japanese enterprises. However, in the 21st century, the dependence of Korean firms on Japanese technology has somewhat declined as global enterprises have appeared in Korea. In contrast to the post-war economic boom, Japanese companies now prefer to cooperate with their Korean counterparts, resulting in joint business ventures between Korean and Japanese firms being continuously developed. This reversal in the economic ties between Korea and Japan can be attributed to several reasons including: the rise of China; Japan's two lost decades; and Korea's push for domestic structural reform as well as economic globalization after the Asian Currency Crisis of 1997. Nonetheless, the issue of Korea's trade imbalance with Japan, which was established during the post-war period, still remains thereby serving as a serious impediment to FTA negotiations between Korea and Japan as well as Korea's TPP negotiations.
Topic:
Economics, History, Bilateral Relations, and Trade
Political Geography:
Japan, Asia, South Korea, and Korea

6. Korea-Mongolia Economic Relations: Current Status and Cooperation Measures

Author:
Lee Jae Young
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since the establishment of diplomatic relations in 1990, Korea and Mongolia have broadened cooperation in various areas such as politics, economy, society, and culture given their geographical proximity and cultural similarities. However, the progress of economic cooperation which has been identified as one of the pillars of Korea-Mongolia cooperation is still weak in comparison with other areas. Thus, it is important to analyze achievements and limitations of economic cooperation with Mongolia, which has emerged as a burgeoning new market of Eurasia, and find new measures to elevate their economic relations to a new high moving forward. In this context, the main objective of this research lies in looking back upon the past 26 years and developing a new strategy on economic cooperation measures. Korea needs to formulate a new strategy that provides a coherent, systematic framework for cooperation with Mongolia and implement it consistently. Holding bilateral summit meetings and Korea-Mongolian forums on a regular basis, strengthening high-level networking, and concluding free trade and visa exemption agreements are necessary.
Topic:
Diplomacy, Bilateral Relations, Trade, and Economic Cooperation
Political Geography:
Mongolia, Asia, South Korea, and Korea