A New Framework for Industrial Cooperation between Korea and the EAEU

Abstract

As economic uncertainty escalates around the world, Korea is undergoing numerous challenges. The global economy is slowing down, and trade war between the U.S. and China is exacerbating the situation even further. Korea’s trade dependency on major markets such as China, the US, EU, etc. is exposing its economy to more vulnerabilities. In order to resolve these challenges, Korea has to escape from the geographical isolation imposed by the division of the Korean Peninsula and diversify its partnerships with emerging economies. Strengthening cooperation with the EAEU and securing new economic growth engines to replace old ones will serve as a way for Korea to overcome the current challenges. Indeed, the EAEU is an attractive partner as a window of new economic cooperation in developing future-oriented relations between Korea and the northern Eurasian countries. Since the two sides share characteristics in economic cooperation that are complementary to each other, it will also be necessary to pioneer such a “northern economic growth space” through strategically enhancing economic cooperation with the EAEU member states. Against this backdrop, this paper analyzes the economic structure, development policy and industrial competitiveness of the EAEU and draws implications for Korea-EAEU industrial cooperation in the future.