South Korea’s Policy toward Belt and Road Initiative

Abstract

The article explores the Republic of Korea’s (ROK) position and policy toward China’s Belt and Road initiative (BRI). South Korea’s interests and intentions regarding linking of Moon Jae-in’s New Northern and New Southern Policies (in an earlier period – Park Geun-hye’s Eurasia Initiative) and China’s BRI are examined. The potential risks and factors that will influence such cooperation are defined, in particular the deepening of US–China rivalry in the region, fears of overdependence on China, instability on the Korean Peninsula, and costs associated with a slowdown in economic growth during the (post) pandemic period. At the official level the ROK has not joined the Belt and Road initiative, but Moon Jae-in’s government adheres to the position of the need to develop cooperation with the PRC. The ROK is interested in economic benefits it can have through its participation in the BRI. In particular, it expects to enter new infrastructure markets together with China. Seoul’s diplomatic curtsy over the BRI is not least related to the ROK’s interest in the Chinese consumer market, which in 2020 became the largest in the world after the US consumer goods market, as well as the importance of economic cooperation with China, its largest trading partner. Projects with the participation of North Korea are of great importance for Seoul as well, but their implementation at this stage is extremely problematic due to international sanctions. Under these circumstances, South Korea is trying to find common ground between its regional policies and the BRI at the level of interregional cooperation and joint investments in third countries (in particular, ASEAN). Thus, South Korea is highly likely to continue its balancing act towards China’s BRI. Seoul will support the Chinese initiative at the level of official rhetoric about the search for formats of linking it with South Korean regional policy, while emphasizing the multilateral nature of cooperation and avoiding as much as possible too much involvement. Acknowledgements. Research for this article was supported by MGIMO University, project No. 1921-01-02.