Identifier
Created
Classification
Origin
06SEOUL450
2006-02-08 08:35:00
CONFIDENTIAL
Embassy Seoul
Cable title:  

KOREAN OBJECTIVES FOR APEC 2006

Tags:  ECON PREL APECO KS 
pdf how-to read a cable
VZCZCXRO9433
PP RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHUL #0450/01 0390835
ZNY CCCCC ZZH
P 080835Z FEB 06
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC PRIORITY 5899
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
C O N F I D E N T I A L SECTION 01 OF 02 SEOUL 000450 

SIPDIS

SIPDIS

STATE FOR EAP/EP AND EAP/K
PASS USTR FOR CUTLER AND YANG

E.O. 12958: DECL: 02/08/2016
TAGS: ECON PREL APECO KS
SUBJECT: KOREAN OBJECTIVES FOR APEC 2006

REF: A. STATE 14967


B. SEOUL 234

Classified By: EconMinCouns Kurt Tong, Reason 1.4 (b,d).

Summary
-------
C O N F I D E N T I A L SECTION 01 OF 02 SEOUL 000450

SIPDIS

SIPDIS

STATE FOR EAP/EP AND EAP/K
PASS USTR FOR CUTLER AND YANG

E.O. 12958: DECL: 02/08/2016
TAGS: ECON PREL APECO KS
SUBJECT: KOREAN OBJECTIVES FOR APEC 2006

REF: A. STATE 14967


B. SEOUL 234

Classified By: EconMinCouns Kurt Tong, Reason 1.4 (b,d).

Summary
--------------

1. (C) A key Korean focus for APEC 2006 will be obtaining
support for its initiative to begin a new APEC research
project on overcoming socio-economic disparities within
APEC-members' respective domestic economies. This initiative
is based on President Roh's own request (first included as an
agenda item during the 2005 Busan APEC Leaders Meeting),and
Seoul will exert commensurate effort in pushing for its
adoption. Korea is happy to see that the initial draft
agendas coming out of Vietnam includes measures for
implementing the Busan Roadmap. Of these, Korea is
especially interested in the Doha Development Agenda (DDA)
support, model Free Trade Agreement/Regional Trade Agreement
(FTA/RTA) measures, anti-corruption efforts, and cultural
issues. Seoul is curious to know Washington's plans
regarding the U.S./Korea/Japan co-sponsored IPR initiative,
and whether Washington is considering additional initiatives
related to it. Korea forecasts that it will be necessary to
convene a separate APEC foreign ministers' event, in some
guise, again this year. End summary.

Initiative on Socio-Economic Disparities
--------------

2. (U) Econoff discussed Korea's APEC 2006 objectives on
February 7 with Hyo-eun "Jenny" Kim, Senior Deputy Director
of the Regional Cooperation Division of the Ministry of
Foreign Affairs and Trade (MOFAT).


3. (SBU) Kim said that Korea's primary focus for the moment
is on obtaining support for an initiative to begin an APEC
research project to examine the causes of, and possible
policy responses to, socio-economic disparities in APEC
economies. Korea's thoughts are described in detail in a
non-paper sent on January 20 to EAP/EP and 10 other APEC
economies including Japan and China.


4. (SBU) Kim emphasized that Korea is aware that this could
be a sensitive topic for some member economies, because it
affects perceptions of globalization, trade, and investment.

She reaffirmed that President Roh is a strong supporter of
globalization and believes that it is the best path to
economic growth. However, in order to obtain sustainable
long-term growth, it would be necessary to come to grips with
socio-economic disparities that can be one result of such
globalization. Kim also stressed that Korea intends for the
research project to hew strictly to the mandate for such a
study contained in the 2005 Leaders Declaration.


5. (SBU) Kim noted that this topic was a personal priority of
President Roh himself, and the initiative goes back to Roh's
belief that APEC should take up the issue of socio-economic
disparities. In fact, President Roh focused his New Year's
Address (Ref B) on just this issue. Korea is hoping to
obtain consensus on conducting such a study before SOM I, so
that at that meeting Senior Officials could give a mandate to
the Economic Committee to carry out the research. In turn,
the Economic Committee would establish a project team to
coordinate activities among scholars in the various APEC
members and with other APEC bodies. Korea would lead the
project team, and coordinate it through the Korean Institute
of International Economic Policy (KIEP),whose President is
also the Chair of the Economic Committee. KIEP is a
state-run think tank affiliated with MOFAT.


6. (SBU) The research would look for case studies from
different APEC members of what types of socio-economic
disparities have arisen in the respective economy and what
policies were used to deal with them, in a search for best
practices. In addition to the study, Korea plans to host an
international APEC symposium on the subject in Seoul in July.


7. (SBU) Kim said that Korea has received positive responses
from China and Japan, but has not heard back from the other
nine economies to which it sent its proposal, including the
United States. Kim expressed hope that the United States
could respond to the initiative soon.

Implementing the Busan Roadmap
--------------

8. (SBU) Turning to other APEC 2006 priorities, Kim expressed
satisfaction with the initial thoughts coming out of Hanoi,
in particular with Vietnam's inclusion of implementing the
Busan Roadmap. Korea believes that focus should be put on
supporting the DDA negotiations, developing model FTA/RTA's,

SEOUL 00000450 002 OF 002


and anti-corruption efforts. Seoul also thinks that cultural
issues should continue to be a topic, and would support
additional APEC cultural exchanges and cultural events.


9. On other agenda items of concern to the United States,
Korea shares our goal of emphasizing work on Avian and Human
Influenza Pandemic mitigation, as well as the U.S. human
security initiatives. She noted, however, that Korea and the
United States would continue to have differences over the
technology choice initiative, which the two sides would "have
to work through."

Question on IPR Initiative
--------------

10. (SBU) Kim indicated that Seoul is curious about U.S.
thoughts on what more to do with the U.S./Korea/Japan
co-sponsored IPR initiative. She wondered whether the United
States was thinking of doing something more based on last
year's achievement, or whether the United States is
considering additional initiatives, such as implementing
guidelines.

Dealing with China-Chinese Taipei Issues
--------------

11. (C) Korea continues to share U.S. concerns over ensuring
the complete and equal participation of Chinese Taipei in
APEC. However, based on its own dealings with China last
year as APEC host, Seoul has come to the conclusion that
holding a separate foreign ministers' event, in some guise,
has become a de facto APEC tradition, and does not believe
there is another realistic option for accommodating both
members' positions.

Comment
--------------

12. (SBU) The study that Korea proposes on socio-economic
disparities could turn out to be fairly innocuous,
particularly since MOFAT appears sincere in emphasizing the
positive impact of globalization and trade on economic
growth, given appropriate policy responses (i.e. good
governance) by individual economies. Furthermore, we can
attest to the veracity of the claim that this topic is of
personal interest to President Roh, meaning that Korea would
find it hard to accept "no" for an answer. We suggest
steering discussion toward pro-growth strategies like
education reform and technology development to "bridge the
divide."


13. (SBU) On another subject, we continue to believe that
raising technology choice in the APEC context will eventually
help us in bilateral terms, despite current Korean
opposition. Since technology choice stands to be a firm U.S.
demand in upcoming U.S.-ROK FTA negotiations, we are hopeful
that the ROKG will realize that the APEC process on
technology choice provides a convenient multilateral fig leaf
for the reforms we will be asking for in the FTA.
VERSHBOW