S Korea to double cooperation funds with ASEAN by 2027

President of South Korea Yoon Suk Yeol announced on Thursday that his country will double its cooperation funds with the Association of Southeast Asian Nations (ASEAN) to $48 million per annum by 2027 to support key projects in the region.

This pledge was made during the ASEAN-RoK summit in Laos after the two sides elevated their relations to a comprehensive strategic partnership. It is their first upgrade of relations in 14 years after they forged a lower-level strategic partnership in 2010.

South Korea is ASEAN's sixth dialogue partner to have the highest-level of ties after the U.S, China, Japan, Australia, and India.

Addressing the summit, Yoon said that as partners for shared prosperity, the two sides will push for comprehensive cooperation covering a wide range of areas.

At the event, both sides agreed to establish a Korea-ASEAN defence ministers' meeting and expand cooperation in maritime security and the defence industry, and advance collaboration in key areas, including trade and investment, digital technology, cybersecurity, clean energy and supply chains, and advanced technologies like electric vehicles, artificial intelligence, and batteries.

As part of their initiatives, they will launch a digital innovation flagship project later this year, with $30 million worth of investments planned through 2028.

In the clean energy sector, the two sides will join hands to reduce carbon and methane emissions under the $19-million ASEAN-Korea Cooperation on Methane Mitigation project over the next three years.

South Korea and ASEAN also agreed to upgrade their free trade agreement signed in 2007 to better reflect the changing business environment.

ASEAN is South Korea's second-largest trading partner and investment destination, with bilateral trade reaching 187.2 billion USD last year.

The ASEAN-Korea Cooperation Fund was established in 1990 to promote projects agreed in three major areas, including development cooperation, human resources, and cultural and academic exchanges.