South Korea-ASEAN Partnership: A Win-Win for ASEAN's Sustainable Future
As ASEAN countries aim to both decarbonize and meet rapidly growing energy demand, strong partnerships are key to reaching these goals. In this context, we firmly believe that South Korea and ASEAN are inherently well-suited partners in shaping a sustainable future together. South Korea has amassed world-leading expertise in various fields, including smart grid technology, electric vehicles (EVs),nuclear energy, renewable energy and energy efficiency. On the other hand, ASEAN economies are projected to be among the fastest-growing in the coming decades. This combination creates a timely opportunity. Technology transfer, investment, and policy coordination between South Korea and ASEAN can unlock major progress on Southeast Asia's green transition - a clear win-win for both sides.
Overview of ASEAN
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organisation that serves as a catalyst for cooperation and integration among its ten member states in Southeast Asia. The organisation comprises Indonesia, Malaysia, Singapore, Thailand, Philippines, Brunei Darussalam, Vietnam, Laos, Myanmar, Cambodia, and Timor Leste, collectively working towards shared goals. Its population has expanded by around 10% over the past 10 years and today there are around 670 million people across the region. According to ASEAN's Secretary General, Kao Kim Hourn, ASEAN is poised to become the world's fourth-largest economy by 2030. This projection is based on the fact that its combined gross domestic product (GDP) already stands at approximately $3.7 trillion. These conditions directly make ASEAN become a potential partner for many countries to establish good cooperation. Southeast Asia’s growing population and economy firmly put its energy sector outlook in the global spotlight.
ASEAN and South Korea Partnership
ASEAN maintains cooperative relationships within the ASEAN+1 framework. South Korea is a significant partner in this framework. Notably, South Korea is ASEAN's second dialogue partner with a free trade agreement. This partnership achieved milestones in 1997 and 2004 with the Treaty of Amity and Cooperation in Southeast Asia (TAC) and a Joint Declaration on Comprehensive Cooperation Partnership. In 2007, the ASEAN-South Korea Free Trade Area (AKFTA) was initiated, including services and investment sectors in 2009.
AKFTA played a pivotal role in boosting trade and investment. In 2019, bilateral trade reached US$156.5 billion, accounting for 5.6% of ASEAN's total trade. South Korean FDI into ASEAN reached US$2.6 billion, making South Korea ASEAN's fifth-largest trading partner and seventh-largest source of FDI.
South Korea and ASEAN expanded their partnership across various sectors, including infrastructure, green industries, clean energy, economic digitization, and support for micro, small, and medium enterprises (MSMEs). Their collaboration in the energy sector is noteworthy, with cooperation in oil and gas, dimethyl ether (DME) production, exploration of marginal oil fields, and second-generation biofuels.
Both recognize the potential of the digital and green economy sectors. ASEAN's digital economy is projected to reach US$200 billion by 2025, and Southeast Asia's green economy is expected to reach US$1 billion by 2030. South Korean companies like Samsung and Hyundai are actively engaged in green energy projects, including a $1.2 billion project to produce green hydrogen in Indonesia. Additionally, the SK Group leads in Vietnam's renewable energy sector, focusing on solar and onshore wind power and aiming for net zero emissions by 2050. They plan to increase the proportion of solar and wind power in Vietnam's energy supply to 61% by 2045, up from 27% in 2021.
Team Korea showcasing its nuclear offerings at a NBP event
Advancement of Green Energy Technology in South Korea
South Korea, as the 14th country to legislate carbon neutrality by 2050, has set an ambitious interim target of reducing emissions by 40% by 2030 compared to 2018. This commitment is especially noteworthy given that South Korea retains industries known for their high energy consumption and imports over 90% of its energy resources due to the lack of sufficient domestic energy sources. Nuclear power contributes about 27% of the electricity supply, with the current administration aiming to increase this to at least 30% by 2030. Notably, South Korea's CO2 emissions from fuel combustion were 570.74 million tons (Mt) in 2020, a significant increase from the 432 Mt recorded in 2000.
The field of nuclear energy in South Korea has seen significant growth over the last few decades, making the nation an exporter of nuclear technology. The indigenous APR1400 reactor design, deployed at the Shin-Kori nuclear plant with units 3 and 4 completed in 2016 and 2019, represents a major leap in nuclear technology. These reactors boast a generation capacity of 1400 MW and a design lifetime of 60 years, pushing beyond the capabilities of Generation III reactors. The APR1400 has even received regulatory certification in Europe and the United States, highlighting its safety and technological prowess.
Furthermore, South Korea is making strides in the international nuclear energy arena by constructing four APR1400 units at the Barakah nuclear plant in the United Arab Emirates, marking the first export of this Korean model. Simultaneously, South Korea is developing the SMART (System-integrated Modular Advanced Reactor), a 330 MWt pressurized water reactor with integral steam generators and advanced safety features. The SMART reactor is designed not only for electricity generation (up to 100 MWe) but also for various thermal applications, including seawater desalination. With a design life of 60 years and a three-year refueling cycle, this reactor represents an exciting development.
The SMART reactor project, a collaborative effort between South Korea and Saudi Arabia, had its roots in 1997, with pre-project engineering work carried out from 2015 to 2018. Currently, the project is focused on obtaining Standard Design Approval for the reactor, with the significant milestone of receiving the first-ever Standard Design Approval (SDA) from the Korean regulatory body for a 100 MWe (330 MWt) integral reactor in 2012. Once this approval is secured, construction of the initial SMART reactor will commence in earnest.
Why the South Korea and ASEAN Partnership is a Win-Win Solution
South Korea and ASEAN have been strengthening their partnership in recent years, which can support ASEAN's goals for a greener future. There are several ways in which closer ties between South Korea and ASEAN can benefit sustainable development in Southeast Asia:
Technology Transfer
South Korea is a global leader in Clean technologies like nuclear energy, renewable energy, energy efficiency, electric vehicles, and smart grids. Through investment and joint ventures, South Korean companies can help transfer these technologies to ASEAN member states. This will help ASEAN upgrade its infrastructure and adopt cleaner energy sources. There are several ways in which closer ties between South Korea and ASEAN can benefit sustainable development in Southeast Asia:
Investment in Clean Energy
South Korea has set ambitious targets to increase its use of clean energy as part of its own transition to a low-carbon economy. This requires major investments in nuclear, solar, wind, hydropower and bioenergy. ASEAN countries can benefit by partnering with South Korean companies on such projects.
Policy Coordination
Closer coordination between South Korea and ASEAN on climate policies can ensure mutual progress towards emissions reduction targets. South Korea aims to achieve carbon neutrality by 2050, a significant endeavor given its historical dependence on energy imports. The nation has already demonstrated a notable shift towards renewable and gas power sources, indicating a strong commitment to cleaner energy. Furthermore, South Korea has set an ambitious interim target of reducing emissions by 40% by 2030. It can collaborate with ASEAN nations to enhance energy security and support their clean energy aspirations. Such collaboration has the potential to bolster green growth in the region.
South Korea's expertise in nuclear energy, exemplified by the APR1400 reactor design, has made it an exporter of nuclear technology. This reactor design, which meets high safety standards, is being exported to international markets.
Additionally, South Korea's development of the SMART reactor with applications in electricity generation and seawater desalination. This technological advancement not only showcases South Korea's leadership in nuclear energy but also holds significant promise for the decarbonization efforts of countries within the ASEAN region, especially for archipelagic nations like the Philippines and Indonesia, as well as smaller countries such as Singapore. Once commercialized, the SMART reactor has the potential to play a pivotal role in reducing carbon emissions and ensuring a sustainable energy future for the region.
In conclusion, the ASEAN-South Korea partnership is a win-win solution, as it leverages ASEAN's economic growth and South Korea's expertise in various sectors, particularly in clean energy and nuclear technology. This partnership not only benefits the involved parties but also contributes to regional and global development, particularly in the transition towards more sustainable and cleaner energy sources.
