President Yoon Suk Yeol said that Korea will double its cooperation funds with the Association of Southeast Asian Nations (ASEAN) to $48 million by 2027 to support key projects in the region. Yoon pledged during a summit with ASEAN leaders in Laos after elevating Korea's relations with the 10-nation regional bloc to a ‘comprehensive strategic partnership’, diplomatic parlance that refers to the highest level of relations that ASEAN can forge with a dialogue partner.
It is the first upgrading of relations between the two sides in 14 years after they forged a lower-level 'strategic partnership' in 2010. Korea is ASEAN's sixth dialogue partner to have the highest level of ties after the United States, China, Japan, Australia, and India.
"Today, Korea and ASEAN established the comprehensive strategic partnership to further enhance cooperation," Yoon said during the summit in Vientiane, the capital of Laos. "As partners for shared prosperity, we will push for comprehensive cooperation covering a wide range of areas".
The ASEAN-Korea Cooperation Fund was established in 1990 to support projects agreed in three major areas, including development cooperation, human resources, and cultural and academic exchanges. During the summit, both sides agreed to establish a Korea-ASEAN defense ministers' meeting and expand cooperation in maritime security and the defense industry by transferring Korea's retired naval vessels to ASEAN member states.
They also committed to advancing partnerships in key areas, including trade and investment, digital technology, cybersecurity, clean energy and supply chains, and advanced technologies like electric vehicles, artificial intelligence, and batteries. Korea and ASEAN will launch a digital innovation flagship project later this year as part of their initiatives with $30 million worth of investments planned through 2028.
In the clean energy sector, the two sides will join hands to reduce carbon and methane emissions under the $19 million ASEAN-Korea Cooperation on Methane Mitigation project over the next three years. Korea and ASEAN also agreed to upgrade their free trade agreement signed in 2007 to better reflect the changing business environment.
Yoon and ASEAN leaders addressed regional security concerns in light of North Korea's threats and China's growing assertiveness in the South China Sea and adopted a joint statement. With bilateral trades reaching $187.2 billion last year ASEAN is Korea's second-largest trading partner and investment destination.