Amid US-China trade war gloom, South Korean cash shines bright for Asean

President Moon Jae-in’s visits to Thailand, Myanmar and Laos indicate the widening scope of Seoul’s diplomacy as it attempts to diversify its economic ties

Experts say a closer relationship with Asean would provide a buffer against major power rivalry, and a partner in the Pyongyang peace process

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Under President Moon Jae-in, South Korea is looking to elevate ties with Asean to diversify its economic relationships and reduce its reliance on China. Photo: AP

Published: 12:00pm, 6 Sep 2019Updated: 2:34pm, 18 Dec 2019

South Korean President Moon Jae-in ended a three-nation tour of Southeast Asia on Friday, his biggest push yet to increase engagement with the fast-growing region – overtures experts believe are well needed at a time of heightened concern over US-China competition in the area.

Moon visited Thailand, Myanmar and Laos this week, signing a number of high-profile deals that included a military intelligence pact with Bangkok, a US$1 billion aid offer to Naypyidaw and business partnerships with Vientiane, where he became the first South Korean president to make a state visit.

His trip indicates the widening scope of South Korea’s Asian diplomacy. Previously, Seoul focused its regional foreign policy efforts on North Asia and Russia, but under Moon, the nation is looking to elevate ties with the Association of Southeast Asian Nations (Asean) in an attempt to diversify its economic relationships and reduce its reliance on China.

This strategy is likely to resonate among Asean nations, according to analysts, many of whom believe Seoul’s Asean pivot could help balance regional power dynamics. Nearly 70 per cent of Southeast Asian stakeholders believe their region is “becoming the arena of major power competition”, according to a January survey by the ISEAS-Yusof Ishak Institute, a Singaporean think tank.

This is primarily due to US-China tensions. Beijing’s quest for political, economic and commercial dominance in Southeast Asia – reflected by hefty investments and loans under its Belt and Road Initiative – has pushed Washington to respond with its own development finance programme that is clearly aimed at countering Chinese influence.

High-rise buildings on the Bangkok skyline. Moon Jae-in’s Southeast Asian tour this week saw him visit Thailand, Myanmar and Laos. Photo: AFP

“Asean member states will need to muster all their resourcefulness to avoid being a pawn in either China’s or the US’ power games,” the ISEAS-Yusof Ishak Institute warned in a report containing the survey results.