Author - Prachi Aggarwal

Recently there were reports that many Korean products are receiving negative ratings from various accounts on Youtube and Naver that eventually turned out to be Chinese netizens. These accounts deliberately gave low ratings to Korean products and provided an alternative with Chinese products. The report read that this activity is occurring only with those products in which Korea competes with China like electric vehicles, e-commerce products, and batteries. This phenomenon drew flak amongst Koreans who realised that scare tactics like loss of life or loss of monetary value were noted as primary reasons. However such activities do not occur in isolation.

Historical Background

South Korea and China are geographical neighbours and important members of the larger land mass of the East Asian Region. However, ideologically and historically they belong to different (read: warring) factions. Geopolitically, their allies have also been enemies of each other. Hence a bilateral relation between the two countries is often viewed with the prism of mistrust and animosity. Yet, the reality is quite different from the general assumption. In terms of trade, Sino-Korean relations have been quite symbiotic and peaceful. China has long imported semiconductors from South Korea, and thereby became the largest trading partner of South Korea. Not only this, South Korea was one of the few countries in the world that enjoyed a trade surplus with China. Data reflected 160 billion dollar worth of imports from South Korea as compared to 107 billion dollar worth of import by South Korea in 2018. This was largely happening due to huge demand for semi-conductors in China, largely supplied by Taiwan and South Korea. Economically the two countries were so happy with each other that they signed a slew of free trade agreements in 2015 and Regional Comprehensive Economic Partnership in 2020. However, things took a donwturn in 2023 as the trade surplus enjoyed by Korea turned into a deficit with China (by almost 20 per cent) and the US replaced China as the largest trade partner of South Korea. The reasons seem to be manifold with some blaming it on China for punishing South Korea after Seoul allowed the establishment of THAAD (Terminal High Altitude Area Defense- an American Anti-Ballistic missile defense system) in its territory while others blame the US for banking thesale of semi-conductors to China. Korea seems to have been caught in the crossfire between the two. 

However, this is exactly where Korean resurgence and leadership come into play. Korea’s Indo-Pacific strategy calls for ‘exclusion and targeting of no nation’; however it also means that it will not compromise on its national interests for the sake of balancing between the US and China. Korea has launched strategic initiatives with India in maritime security in the Indian Ocean region. However, Indian External Affairs Minister S. Jaishankar called for a greater collaboration in non-traditional security issues such as green hydrogen, critical and emerging technologies, semiconductors, nuclear cooperation etc. India and South Korea call their bilateral relations a ‘special strategic partnership’ and the two nations have historically borne the brunt of being in geographical proximity to China. Hence it would be mutually beneficial to make their geopolitical and economic interests converge in ‘energetic’ terms. 

There are various dimensions to a Sino-Korean relationship. First of all, the South Korea-China equation is still defined in the light of the rivalry between the USA and China, and Korea as not really regarded as an independent entity. It was found that other countries still view the actions of Korea through the prism of its symbiotic connection with the US and vice versa, rather than focusing on how Korean foreign policy will impact Korean national interests. Secondly, many countries see the East Asian region i.e. China, Japan, and Korea as a singular entity, due to which individual Korean position with other nations especially with developing nations is missed out almost completely and the dominant voice (aka: China) takes precedence. Lastly, much of South Korea’s foreign policy decisions are affected by the emotional scars of partition with North Korea. Since China is a very strong ally of North Korea, most South Korean leaders have taken an appeasement approach towards China to prevent an escalation. 

Conclusion

A lot of oscillation has taken place in the Korean Indo-Pacific strategy as part of the fallout on the relationship between China and Korea. While political jingoism plays its part in winning elections, no country is able to trust China nor is it able to avoid trade with China. Hence the only alternative left for various middle powers is to collaborate among themselves to avoid a situation where their interests are compromised. Caught in the crossfire of THAAD and the Chinese Indo-Pacific strategy can Korea preserve its national interests? What shall be the equation in the trade between China and South Korea? What are the changing dynamics in Korea-China relations? How can Korea collaborate with India with which it shares traditional bonhomie? How can India and Korea collaborate to better the relations between the two?

Can  Korea convert its special strategic partnership with India into tangible trade increase to benefit both countries and counter China, or will the professions of close friendship and cooperation remain more rhetorical than impactful? South Korea will need to decide on the course it wishes to follow.