‘ABCD strategy’ or New Southern Policy

After coming to power, South Korean President Yoon Suk-yeol proposed the so-called “ABCD strategy” (advance human capital, build health security, connect cultures, and digitize Asian infrastructure) toward Southeast Asian countries and India.

There are opinions that essentially it is equivalent to connecting “people, peace and prosperity” of the region, which was emphasized in the Moon Jae-in administration’s New Southern Policy. Thus, there would not be much change in the contents of South Korea’s policy toward ASEAN countries and India, although the name New Southern Policy might be changed.

However, it would be better if the name New Southern Policy, as well as its contents, remain unchanged to show bipartisan consensus in South Korea that ASEAN countries and India are important for South Korea’s economic and strategic interests.

With the arrival of the country as a middle power, both economic and strategic imperatives have pushed South Korea to seek further diversification and to reach out to other Asian countries.

During the Roh Moo-hyun administration, South Korea tried to reach out to ASEAN countries and India in a more substantial way. The Korea-ASEAN Center was established and a free trade agreement (FTA) was signed with ASEAN countries during his tenure. And during his visit to India in 2004, the two countries established a joint study group for an FTA.

The Lee Myung-bak administration also announced its New Asia Initiative for the region which used the words — peace and prosperity. South Korea signed a Comprehensive Economic Partnership Agreement (CEPA) with India and Strategic Partnership Agreement with both ASEAN and India during Lee’s tenure.

The next President Park Geun-hye also showed interest in the region, which led to steady growth in South Korea’s relations with ASEAN countries and India.

Another important thrust was brought about by the Moon Jae-in administration in South Korea’s engagement with this region. He announced the New Southern Policy and underlined that South Korea’s relations with ASEAN countries and India are on a par with South Korea’s relations with the major powers such as the U.S., China, Japan and Russia.

The New Southern Policy was also an important departure point because it tried to create institutions, processes and an epistemic community, which promotes connecting people, peace and prosperity in ASEAN countries and India with South Korea.

Moon became the first president of South Korea who visited all of the ASEAN countries and India during his term. It is also interesting to note that most of these visits happened in the very first half of his term underlining the importance he gave to the region.

Because of the continued efforts of South Korea, bilateral trade, investment and people-to-people exchanges with these countries increased substantially. South Korea’s trade with ASEAN countries rose from $149 billion in 2017 to $176 billion in 2021.

ASEAN collectively constitutes the second-largest trading partner of South Korea. Of the ASEAN countries, the biggest trading partner for Korea has been Vietnam with $68 billion in 2021.

Singapore, Indonesia, Malaysia, the Philippines and Thailand have also been growing economically closer to South Korea. By 2019, almost 12 million people were visiting each country, making ASEAN the most favored travel destination for South Koreans. South Korea’s trade with India has also grown substantially to $23.7 billion in 2021 after a period of lowered optimism that lasted for a few years.

During the Moon Jae-in administration, several universities and research institutes in South Korea started placing more importance as well as funding for teaching and research about ASEAN countries and India.

A number of seminars, conferences, awareness campaigns and reach-outs were organized and gradually, they have been providing momentum to South Korea’s bilateral relations with these countries.

South Korea under the Moon administration also preferred to avoid committing to the Indo-Pacific strategy and preferred the New Southern Policy, which was closer to the ASEAN Outlook on the Indo-Pacific and India’s Act East Policy.

Meanwhile, South Korea also became connected with ASEAN countries through the Regional Comprehensive Economic Partnership Agreement (RCEP) as well as with ASEAN and India by the Indo-Pacific Economic Framework (IPEF).

It would be better for the Yoon administration to carry forward the New Southern Policy — both its nomenclature and contents — and further strengthen it.

Even though the new administration appears to be interested in the Indo-Pacific strategy as well as the Quadrilateral Security Dialogue (Quad) and has also been re-strengthening its ties with the U.S. and Japan, the gains of the New Southern Policy must be consolidated and further expanded as both positions are not mutually exclusive.

A change in the policy’s name to the “ABCD strategy” or dilution of its contents might create confusion and apprehension in the minds of partner countries and it could be avoided.