South Korea

Joongang Ilbo | English | News | Dec. 20, 2024 | Shifting Geopolitical Alliances

Korea Gas Corp. (Kogas), South Korea's state-run gas supplier and a major global liquefied natural gas (LNG) buyer, will now procure LNG from multiple U.S. companies, shifting away from traditional Middle Eastern suppliers. This strategy aims to boost imports from the U.S., reduce South Korea's trade surplus with America, and diversify energy sources.

Kogas’s long-term contracts with Oman and Qatar will expire by the end of 2024. The selection of U.S. bidders is designed to replace these agreements, although Kogas cannot disclose the chosen companies until the bidding process concludes next year. Qatar historically supplied around 4.9 million tons of LNG annually, while Oman provided about 4.1 million tons since the late 1990s.

The pivot toward U.S. LNG is expected to be influenced by anticipated diplomatic pressures from the incoming Donald Trump administration, which is likely to promote increased energy imports from the U.S. Kogas previously secured around 11 trillion won ($7.8 billion) in contracts with U.S. suppliers during Trump's first term. Additionally, reports indicate that U.S.-sourced LNG may be more competitively priced than traditional Middle Eastern sources, further motivating this change. Last year, Kogas was South Korea's largest LNG importer, bringing in a total of 44.12 million tons.

Joongang Ilbo | English | News | Dec. 20, 2024 | Geopolitical Conflict and Disputes

North Korea has condemned the joint statement from the U.S., South Korea, and other nations criticizing its military cooperation with Russia. A North Korean foreign ministry spokesperson accused these countries of "distorting and slandering" what they claim is a "normal" partnership with Moscow, following strong condemnations of their military collaboration.

North Korea defends its alliance with Russia as a legitimate response to perceived U.S. threats but avoids acknowledging the deployment of troops to Russia or the casualties they have suffered. The spokesperson claimed that the actions of the U.S. and its allies threaten international peace and security, framing their criticism as politically motivated.

The North views the negative reactions from the West as confirmation of the effectiveness of its military ties with Russia. Reports suggest that over 10,000 North Korean troops have been sent to assist in the war in Ukraine, raising concerns of escalating conflict. The U.S. has confirmed significant casualties among these troops, estimating around 200 soldiers from both Russia and North Korea killed in combat against Ukrainian forces.

정부, 아세안+3에 "불확실한 시기 경제 상황 공유...협력 강화"

Money Today | Local Language | News | Dec. 20, 2024 | UndeterminedEconomic Growth

Choi Ji-young, Director General for International Economic Management at the Ministry of Strategy and Finance, led the 'ASEAN+3 Finance Ministers and Deputy Central Bank Governors' Meeting' in Pyeongchang on the 17th and 18th. The meeting aimed to share economic insights amid uncertainty and boost regional financial cooperation, marking Korea's final co-chair event of the year.

Various organizations, including AMRO, IMF, and ADB, reported on economic trends and risks, projecting solid growth in the regional economy but cautioning about potential downsides due to external changes, such as a new U.S. administration. The Korean delegation emphasized the need for accurate assessments of economic conditions among member countries, noting the stabilization of Korea's financial and foreign exchange markets.

The meeting also advanced financial cooperation, particularly enhancing the Chiang Mai Initiative Multilateralization (CMIM). A detailed operation plan for a Rapid Financing Program was finalized, and discussions on restructuring the multilateral currency swap system began. A working group led by the Bank of Korea was approved to address the financial resource structure.

In response to the growing digital financial transformation, the Korean delegation highlighted the importance of risk analysis and response measures while promoting the development of a regional digital bond market. They expressed intent to lead future financial cooperation initiatives in this area.