Following the APEC meeting in San Francisco, South Korean President Yoon Suk-yeol embarked on his second visit to Europe within six months. During his visit to the UK, he held talks with Prime Minister Rishi Sunak, focusing on areas such as supply chains, digital technology, nuclear energy, cybersecurity, and defense industry.
On November 22, Yoon and Sunak signed a new bilateral framework known as the "Downing Street Agreement," elevating the relationship between the two countries from a "broad, creative partnership" to a "global strategic partnership." This agreement, signed on the 140th anniversary of diplomatic relations established between the UK and Korea in 1883, emphasizes their joint efforts to address geopolitical risks.
Both the UK and South Korea are leveraging each other's geographical positions for greater benefits. On the same day, Yoon approved the partial termination of the military aspect of the "Panmunjom Declaration" in response to North Korea's satellite launches, signaling a resumption of military reconnaissance and monitoring activities near the Demilitarized Zone. North Korea, in turn, announced the lifting of its commitment to the Panmunjom Declaration, resuming all military measures that were suspended under the agreement. Signed in September 2018, the agreement aimed to eliminate the threat of war on the Korean Peninsula and transform it into a "permanent peace zone."
South Korea's New Role as a "Global Hub Nation"
The US, Japan, and South Korea previously formed a military triad in the Indo-Pacific region to address the so-called "North Korean threat." The military cooperation between the UK and South Korea has bolstered Yoon's confidence in proactively dealing with North Korea.
The Downing Street Agreement, signed by Yoon and Sunak, is backed by the US military cooperation. Under this framework, South Korea will strengthen its cooperation with the UK in addressing North Korea's nuclear issues. This marks the first bilateral action against North Korea by the two countries, paving the way for future sanctions by the US and other allies.
The agreement focuses on technology sharing, defense cooperation, and security in maritime, land, air, and cyberspace between the UK and South Korea. It includes joint naval exercises and patrols targeting North Korean maritime activities. This action will be supported by defense and cyber cooperation partnerships, also strengthening ties between defense industries and intelligence agencies.
In terms of cyber cooperation, the two countries will jointly enhance their capabilities to detect, disrupt, and prevent malicious cyber activities. The defense partnership focuses on improving industrial cooperation and supply chain integration to enhance national security defenses.
Unlike his predecessor Moon Jae-in, who sought balance among various parties, Yoon, since taking office in 2022, has actively aligned with the US, proposing a new national positioning. In an interview with The Washington Post last year, Yoon expressed South Korea's intention to become a stronger ally of the US and take on more responsibilities in overseas development and aid, aiming to become a "global hub nation."
To further increase its influence, South Korea continues to expand economic and trade cooperation with various countries. In 2019, South Korea signed a free trade agreement with the UK, becoming one of the first countries to sign such an agreement with the UK amid Brexit negotiations. The agreement stipulated that if the UK opted for a no-deal Brexit, it would take effect immediately upon the UK's exit from the EU.
Representatives of the two countries negotiated an update to the free trade agreement on November 22. The new agreement aims to increase digital trade between the two countries and simplify previous complex procedures. According to UK Business and Trade Secretary Kemi Badenoch, the new agreement is more modernized.
The UK's Presence in the Indo-Pacific
To ensure economic development post-Brexit, then-Prime Minister Boris Johnson renewed the free trade agreement with South Korea, providing a safeguard for trade between the two countries following a hard Brexit. Since the UK was not yet authorized to negotiate free trade agreements with other countries, the UK-South Korea agreement was essentially consistent with the trade agreement already signed between the EU and South Korea, requiring renegotiation within two years.
Yoon's visit to the UK is both a response to the pre-Brexit trade agreement between the UK and South Korea and support for the UK's expanded influence in the Asia-Pacific region. UK Trade Minister Badenoch expressed intentions to include the digital economy in the agreement, providing security for the UK as a high-tech economy and creating new opportunities for British exports in the food and luxury goods industries.
During negotiations at the UK-South Korea Business Forum, attended by Badenoch and South Korean Trade, Industry, and Energy Minister Bang Moon-kyu, South Korea announced a £21 billion investment in green energy and infrastructure projects across the UK, creating over 1,500 technical jobs.
Over the next decade, South Korea's sovereign wealth fund plans to invest £97 billion in the UK, funding renewable energy, green infrastructure, and waste management projects. Additionally, Shinhan Financial Group, wind turbine manufacturer Seah Wind, food and beverage company PSC, and Hanwha Phasor will invest £2 billion, £650 million, £150 million, and £90 million, respectively, in the UK.
Cooperation with South Korea highlights the UK's ambition to expand its influence in the Indo-Pacific region. In late September 2022, then-Foreign Secretary James Cleverly expressed the UK's desire to establish closer ties with the Indo-Pacific region, strengthening cooperation in economics, security, and defense. During his visits to Japan and South Korea, he conveyed the UK's determination to collaborate with the Indo-Pacific region to business, financial, and academic leaders.
This year, the UK, a non-Pacific coastal nation, successfully joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and released the "UK Defence and Indo-Pacific" report, identifying China as a "systemic challenge of the epoch." The UK is committed to adhering to the US-led Indo-Pacific strategy, a continuation of the main policy line initiated by the Trump administration and carried on by the Biden administration.
The UK's reliance on the US for its small-circle diplomacy may bring short-term benefits but will inevitably face constraints in the future. The UK's Indo-Pacific strategy is primarily seeking pure economic benefits, with the UK government projecting that 56% of global economic output growth by 2050 will come from the Indo-Pacific region.
