등록일 2023.01.27
Koh Yeong-kyeong (Research Professor, ASEAN Center, Asiatic Research Institute, Korea University)
In 2022, the new Korean government devised a diplomatic strategy centered on the Indo-Pacific strategy. As part of that, it also declared that it would integrate its ASEAN policy into a comprehensive strategic partnership. The main objective is to expand the cooperation between Korea and subregional cooperation organizations. Within ASEAN, which geographically spans a wide area encompassing the maritime and continental, one of the many subregional cooperation organizations that share geographical proximity and development issues is the East Asian Growth Area, the BIMP-EAGA. Although the BIMP-EAGA, which consists of the Southeast Asian maritime countries, is recognized for its importance in terms of geopolitics and biodiversity, its cooperation with Korea has been limited with no representative project have yet to emerge.
There are two main reasons behind the limited cooperation between the BIMP-EAGA and Korea. First, there is a lack of interest and understanding towards the BIMP-EAGA on the part of Korea. Ties between the two only started very recently. Although the BIMP-EAGA infrastructure development project was launched for the first time in 2009, the Korea-Maritime Southeast Asia Cooperation Initiative was only introduced at the Korea-ASEAN Summit in November 2020. Meanwhile, Korea's BIMP-EAGA Cooperation Fund was established in 2021, and the size of the fund was increased to $1 million in 2021 and $3 million in 2022. Despite the increased, the fund is still smaller than the Mekong Cooperation Fund. Long-term projects or large-scale projects have been limited to date. Fortunately, however, as the plan to double the size of the Korea-ASEAN Cooperation Fund in 2023 has been announced, the size of the BIMP-EAGA fund will also be expanded. Therefore, it is expected that there will be more plans for the BIMP-EAGA mid- to long-term projects in the future and that the range of project choices will additionally be broadened.
Second, the decision-making structure of the BIMP-EAGA and the consultation process of working-level officials are complicated. The BIMP-EAGA, a subregional consultative body of the Ministry of Maritime Affairs of Southeast Asia, was proposed by the Philippines President Ramos in 1992, but the first summit did not take place until 2003. After that, it was only after the ‘Roadmap to Development’ (2006-2011) and ‘Implementation Blueprint’(2012-2016) were adopted with the support of the Asian Development Bank that the BIMP-EAGA projects could be said to have entered full-scale. Since there are four main member countries with many stakeholders, including local governments of each country, the BIMP-EAGA governance structure is complex and the process is multi-layered - from consultation to implementation - which inevitably lengthens the process. The practical discussions with South Korea are naturally difficult to move quickly.
Korea and BIMP-EAGA's Common Area of Interest to Find a Way in "Green"
Although it started recently, Korea needs a strategy to find areas of mutual interest to efficiently carry out cooperative projects with the BIMP-EAGA. The goals pursued by the BIMP-EAGA are clearly outlined in ‘Vision 2025’.
The goal is to achieve economic development through infrastructure constructions and industrial development, ultimately reducing the regional development gap. Considering that the Philippines and Malaysia EAGA have poverty rates 14 and 7.9 percentage points higher than the national average, respectively, and lower income levels, there is an urgent need for regional development. To achieve this goal, the areas where the BIMP-EAGA hopes to collaborate most are transportation infrastructure and connectivity. Due to geographical conditions, marine island regions have lagged behind in terms of infrastructure development, which has been a disadvantage for economic development. In addition, since the maritime regions are vulnerable to the climate change, there is an urgent need to build infrastructure to ensure the quality of decent human life. However, if Korea's strategy to strengthen cooperation with the BIMP-EAGA is focused on large-scale infrastructure projects, it will be difficult to promote those projects efficiently. With the size of Korea's ODA funding, it is not easy to handle multiple large projects at once, and private capital find it hard to participate due to its low profitability. Furthermore, since the infrastructure construction of marine islands requires more capital and technological input, the risk is bound to increase.
Let's leave the construction infrastructure for a while and look at the industrial sector. Exports of natural resources, agricultural and marine products, and tourism have driven the BIMP-EAGA's growth. Along with the development of agriculture, fisheries and manufacturing, support for environmental ecology protection is also important. This is because the BIMP-EAGA region is a treasure trove of marine ecosystems with tropical coastlines and coral reefs covering 60% of the world's total, and is made up of world-class tropical rainforests. Thus, in the context of a transition to a green or circular economy while protecting natural resources, the BIMP-EAGA is focusing on infrastructure and industrial development cooperation.
The transition to a green economy and a circular economy is a priority for both the BIMP-EAGA and Korea. Internal factors, such as sustainable economic development and ecological environment protection, and external factors, such as strengthening environmental regulations in the global market, serve as the main drivers. Brunei has declared that it will achieve net zero by 2050, and Malaysia aims to achieve net zero by 2050, while Indonesia by 2060. The Philippines has not set a deadline for net-zero, but has introduced a greenhouse gas reduction target. The ASEAN Economic Community has also adopted the Framework for Circular Economy for the AEC in 2021, and the ASEAN Taxonomy was unveiled in 2021. On the other hand, Korea has set a goal of net zero by 2050, and to this end, the new government has put forward carbon neutrality and green growth as banners. Transition to a green economy is not an option but a necessity for both Korea and the four BIMP-EAGA countries that are highly dependent on exports, and expansion of renewable energy and securing carbon credits are also urgent tasks.
Mutual cooperation and technology sharing are necessary for Korea and the BIMP-EAGA to transform into a green or circular economy. The green economy is a very comprehensive concept, encompassing various fields such as energy efficiency, eco-friendly transportation, green buildings, waste treatment, and smart agriculture and fisheries. However, the transition to a green economy is not simply developed through campaigns or support measures. Rather, it can be achieved when a technology combining green tech, clean tech, and digital is applied. For instance, artificial intelligence(AI) solutions for marine waste treatment, and smart farm technology using sensors and data for fish farms can help protect the environment while increasing productivity. In the process of mining and smelting cobalt, graphite, and rare earth elements, which are key raw materials for electric vehicle batteries, environmental pollution occurs, and it is not easy to dispose waste batteries. To recycle secondary batteries without causing pollution in the production process, considerable eco-friendly technology development is required along with investment in building automation facilities. Technology in the field of green tech is a necessary factor to revitalize the local economy of the BIMP-EAGA. This is the strength of Korean companies. If Korean tech startups or SMEs participate in the BIMP-EAGA green cooperation project under the support of the Korean government, local partners and local communities in the region can be provided with technical solutions for sustainable growth. Participating Korean companies will acquire richer data and gain experience in entering overseas markets through cooperative projects. If Korean medium-sized and large companies participate, they will receive higher scores in global ESG assessments while contributing to local job creation. In particular, cooperation with the BIMP-EAGA is very important for Korean companies to secure carbon credits. This is because the BIMP-EAGA region has low carbon reduction costs and sufficient conditions for producing afforestation credits.
In foreign policy, it is said that a customized strategy for specific targeted countries is effective. For a customized strategy to work, our strengths must be matched with their needs. The common priority area for Korea and the BIMP-EAGA is the green sector, not large infrastructure. While overcoming the limitations of small funds and contributing to the cause of cooperation in global climate response and solving local problems, would not it then be appropriate to introduce a customized strategy for the ‘Korea-BIMP-EAGA Green Partnership’ to support projects that can provide important opportunities to Korean companies as well?