South Korea To Double ASEAN Development Funds To US$48 Million By 2027

VIENTIANE, Oct 10 (Bernama-Yonhap) -- President Yoon Suk Yeol said Thursday that South Korea will double its cooperation funds with the Association of Southeast Asian Nations (ASEAN) to US$48 million by 2027 to support key projects in the region.

Yoon made the pledge during a summit with ASEAN leaders in Laos after elevating South 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, according to Yonhap news agency.

It is the first upgrading of relations between the two sides in 14 years after they forged a lower-level "strategic partnership" in 2010.

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South Korea is ASEAN's sixth dialogue partner to have the highest-level of ties after the United States, China, Japan, Australia and India.

"Today, South 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 promote projects agreed in three major areas, including development cooperation, human resources and cultural and academic exchanges.

Yonhap reported, 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 South Korea's retired naval vessels to ASEAN member states.

They also committed to advancing collaboration 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.

As part of their initiatives, South Korea and ASEAN will launch a digital innovation flagship project later this year, with US$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 US$19 million ASEAN-Korea Cooperation on Methane Mitigation project over the next three years.

South Korea and ASEAN also agreed to upgrade their free trade agreement signed in 2007 to better reflect the changing business environment.

ASEAN is South Korea's second-largest trading partner and investment destination, with bilateral trades reaching US$187.2 billion last year.

Founded in 1967, ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

-- BERNAMA-YONHAP