Government to Step up International Cooperation and Efforts to Reduce Greenhouse Gas Emissions

Deputy Prime Minister Choo Kyung-ho presided over the 230^th Ministerial Meeting on International Economic Affairs on August 19 to discuss four major external issues: implementation plans for Indo-Pacific Economic Framework (IPEF), ways to strengthen economic cooperation with China, frameworks to implement international greenhouse gas emissions reduction projects and plans to prevent unfair competition and protect trade secrets. In addition, the 143^rd EDCF Management Committee Meeting was held following the ministerial meeting to discuss four issues: ways to facilitate the contribution of the private sector in EDCF, EDCF’s Program Loan management strategies, ways to improve support for African countries via EDCF and support for EDCF-CABEI Co-financing Facility.

The following is a summary of DPM Choo’s remarks.

Ministerial Meeting on International Economic Affairs

Although prices increase of major raw materials such as oil and grain are easing, concerns about a global economic downturn are growing due to many factors including U.S. and China’s economic slowdowns. While heightened geopolitical risks have become more common across the globe, supply chain stabilization and actions on climate change have become structural challenges that cannot be addressed without close global coordination.

Against this backdrop, the government will take actions with the aim of strengthening cooperative relationships via different multi and bilateral channels with key partner countries. 

Actively take part in the implementation of IPEF

- Work to reflect the national interest and build multilayered cooperation networks to respond to the emergence of new trading blocs from the rule-setting stage of IPEF

- Complete domestic procedures for IPEF within August and maximize national interest at IPEF negotiation when it comes to its four key areas of trade, supply chains, clean energy and decarbonization and infrastructure, and tax and anti-corruption  

Strengthen economic cooperation with China

The government will step up economic cooperation with China considering the development of economic[1] and diplomatic cooperation as a way to mark the 30^th anniversary of Korea-China diplomatic relations

- Hold bilateral high-ranking meetings on economic affairs to discuss ways to cooperate in each sector ranging from culture, climate change and healthcare to macroeconomic policies, supply chains and trade to ways to resolve difficulties that Korean companies in China face

- Build closer economic relationships with not only China’s central government but also local governments and the private sector.

Implement international greenhouse gas emissions reduction projects

Last year, the government revised up the nationally determined contributions (NDC) target and committed to achieving a bold international greenhouse gas emissions reduction goal[2]. To that end, it will draw up frameworks to implement international greenhouse gas emissions reduction projects.

- Set up a pan-ministerial platform to facilitate the international emissions reduction projects and establish related rules and legal systems as soon as possible

- Expand bilateral agreements between governments to allow transfer of greenhouse gas emissions reduction

- Encourage Korean companies to expand overseas business opportunities by channeling public funds into the private sector

Prevent unfair competition and protect trade secrets

The government will lay the foundation for economic security by strengthening and devising preemptive countermeasures to prevent leaks of companies’ advanced technology information as protecting national advanced technologies is considered to be a key task for achieving national economic security.

EDCF Management Committee Meeting

Amid rising external uncertainties, the government also needs to promote EDCF.

- Encourage Korean companies to enter the market in developing countries by expanding projects scales and diversifying management methods with a view to facilitating EDCF’s contribution to the private sector. To that end, the government will identify opportunities for large-scale infrastructure projects via networking channels with developing countries’ governments and multilateral development banks (MDB) and make the most of compound financial instruments to entice more players to join the large-scale projects. In addition, it will provide various types of financial supports for the private sector in developing countries such as loans, financing and guaranty by improving EDCF’s existing financing methods

- Develop strategies to manage Program Loans that provide financial aid as a form of the government budget to help developing countries enhance policy capacity and Korean companies make inroads into developing countries

- Discover and foster new partner countries for economic cooperation in Africa by adopting the so-called select-and-focus strategy