South Korea

중국 “서해구조물은 어업용” 되풀이…정부 ‘맞불 카드’ 검토

Joongang Ilbo | Local Language | News | April 25, 2025 | Geopolitical Conflict and Disputes

On April 23, 2025, during the 3rd Korea-China Maritime Cooperation Dialogue in Seoul, South Korea expressed its concerns over China's unapproved installation of structures in the Korea-China Provisional Measures Zone (PMZ) in the West Sea. South Korea's Director-General of the Ministry of Foreign Affairs for Northeast and Central Asia, Kang Young-shin, challenged China's claim that these structures are merely aquaculture facilities for fisheries. He emphasized the need to avoid any unilateral alterations to the status quo in the PMZ, where the Exclusive Economic Zones (EEZs) of Korea and China overlap amid ongoing boundary negotiations.

Minister of Foreign Affairs Cho Tae-yeol, attending a National Assembly Foreign Affairs and Unification Committee session, indicated that South Korean officials have been firmly conveying their stance during discussions with China. He mentioned that the government has already approached the issue at the ministerial level and that discussions are ongoing regarding technical matters. China has maintained its assertion that the structures serve fishing purposes, potentially taking advantage of provisions in the Korea-China Fisheries Agreement that allows fishing in the PMZ.

The South Korean government is contemplating a proportional response to China's actions, such as the installation of similar aquaculture facilities in the PMZ, depending on China's future conduct. Minister Cho noted that while the situation complicates potential actions under the UN Convention on the Law of the Sea due to uncertainties around whether the structures are fixed, there are ongoing reviews of effective alternatives and countermeasures. The National Security Council has also engaged in discussions around this topic since 2022, reflecting a shift in South Korea's approach to addressing the issue while considering the economic implications of potential measures.

달러 가치 추락하는데 원화 저평가 여전…트럼프 환율 문제 꺼내나

Money Today | Local Language | News | April 25, 2025 | UndeterminedTrade Issues and Numbers

On April 23, the KOSPI index closed at 2,525.56, showing an increase of 1.57%, while the KOSDAQ index rose by 1.39% to 726.08. The dollar-won exchange rate held steady at 1,420.60 won against the dollar. The article highlights the potential for US President Donald Trump to involve himself in upcoming '2+2' trade negotiations with Korea, which may place the undervaluation of the won in the spotlight.

Despite the recent weakness of the dollar, the won remains undervalued. As per Investing.com, the dollar index recently dropped to 98.28, the lowest since March 2022. The divergence in interest rates between Korea and the US is a primary factor contributing to the depreciation of the won. While US interest rates have increased significantly, Korean rates have lagged behind, causing capital to flow out of Korea in search of higher returns. Additionally, factors such as foreign capital outflow and a weakening yuan due to geopolitical tensions are also impacting the won's value.

The exchange rate is critical in trade dynamics, as a weaker domestic currency can influence the trade balance positively. With ongoing tariff discussions aimed at reducing the US trade deficit, exchange rate concerns have gained prominence, particularly in the context of the recent tariff war. Trump has raised the issue of exchange rate manipulation on social media, hinting that the won may come under scrutiny during upcoming trade negotiations in Washington, D.C. Experts suggest that the Korean government should formulate a strategy informed by the recent US-Japan negotiations to effectively respond to potential challenges presented by Trump's policies.

Yonhap | English | News | April 25, 2025 | Geopolitical Conflict and Disputes

Foreign Minister Cho Tae-yul of South Korea stated that the country's engagement with China coincides with the interests of the United States, particularly amidst heightened U.S.-China competition. Speaking at the Asan Plenum in Seoul, he emphasized that no nation desires the strategic rivalry between the U.S. and China to be a "zero-sum game." Cho pointed out South Korea's unique position of balancing a strong military alliance with the U.S. while maintaining significant economic ties with China.

Cho affirmed that South Korea's foreign policy prioritizes its alliance with the U.S., acknowledging that China does not contest this priority. He indicated that South Korea would pursue honest dialogue with China, expressing its differences on contentious issues such as the South China Sea and the Yellow Sea. He reiterated that the goal is to avoid being forced to choose between Washington and Beijing, a sentiment shared by many countries in the region.

In terms of South Korea-Japan relations, Cho highlighted the need for a reflective approach to past misunderstandings. He suggested that both nations should reassess their perspectives to foster better future cooperation rather than waiting for the other party to change first. Japanese envoy to South Korea, Koichi Mizushima, also underscored the increasing significance of South Korea-Japan collaboration in light of regional security uncertainties, especially with a presidential election in South Korea approaching in June.