The establishment of the AEC and its implication for South Korea(12)

The establishment of the AEC and its implication for South Korea

Worries are prevailing that South Korea is way behind not only the running Japan but also the flying China. Other major players including Australia, America and the North Europe don’t sit idle as well. 

Prediction is that the ASEAN may play a crucial role of the last resort to save South Korea suffering from chronic weak growth. Needless to say, systematic and long-term approach is desperately needed in the unprecedented era of the AEC.

The establishment of the AEC and its implication for South Korea(11)

The establishment of the AEC and its implication for South Korea

South Korean business people navigating new growth chances have unanimously pointed out that Japanese business presence is dominant in the region. Moreover, China is speeding up recently by utilizing its extensive networks across the region. 

China has maintained robust retail and wholesale channels in most part of the ASEAN since around the 16~17th century when the Western forces first embarked on their rush to Southeast Asia. Unlike competitors heading forward, South Korea is often regarded encountered with shabby circumstance.

The establishment of the AEC and its implication for South Korea(10)

The establishment of the AEC and its implication for South Korea

In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. This will also gear up the possibility of the realization of the AEC overcoming the concern that the AEC blueprint 2025 may remain a mere declaratory gesture. 

As a matter of fact, a global war without guns has been underway to attract the ASEAN actively stretching itself to the world. For instance, Japan has been striving to enhance its clout on the AEC by devoting itself to investment on the infrastructure and key industries.

The establishment of the AEC and its implication for South Korea(9)

The establishment of the AEC and its implication for South Korea

“People in Vietnam will start to learn the Thai language to drive taxies in Bangkok. There will be Laotians who will pick up Javanese text books to become cab drivers in Jakarta.” Actually, Singapore has been importing housekeepers from its neighbors, Indonesia and the Philippines in particular. 

However, it will be highly likely that more human resources in various fields of the region will cross the borders of the ASEAN members with no limitation. 

The establishment of the AEC and its implication for South Korea(8)

The establishment of the AEC and its implication for South Korea

The economic clout will be further strengthened if the ASEAN succeeds in actualizing the AEC. Consequently, the influence of the AEC on the regional security issues will be also growing bigger. 

Against this background, hopes are high that the beginning of the AEC will serve an opportunity to create a new landscape for the 21st century. A local expert in Indonesia pictures potential changes in the region that the AEC may bring in the upcoming days.

The establishment of the AEC and its implication for South Korea(7)

The establishment of the AEC and its implication for South Korea

Along with Africa and South America, the ASEAN has been called as the symbol of underdeveloped areas. Thus, major powers like America, the EU and China would remain invincible if the ASEAN members try to compete with them individually. 

However, situation would be different if joint efforts of the 10 countries to cope with superpowers is designed and carried out. As the old saying goes, “United we stand, divided we fall”, the countries will have their confidence built up step by step. 

The establishment of the AEC and its implication for South Korea(6)

The establishment of the AEC and its implication for South Korea

There exists considerable economic gap in the region as well. For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. 

In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC. In spite of the skepticism raised, the importance of the birth of a sizable single economic community shouldn’t be underestimated. 

The establishment of the AEC and its implication for South Korea(5)

The establishment of the AEC and its implication for South Korea

This could explain why negative voices concerning the future of the AEC started to be echoed. The question is whether the AEC can evolve itself something beyond a regional agreement body. 

Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. In addition, neither a single currency nor a central decision-making tower as those in the EU can’t be found. 

The establishment of the AEC and its implication for South Korea(4)

The establishment of the AEC and its implication for South Korea

In fact, meaningful progress was already achieved since more than 70% of the intra-regional trade has been conducted free from any types of tariff. What will be the ASEAN like in the time of the AEC? 

It may be too early to forecast the AEC in 10~20 years when the AEC just pulled up its anchor. Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region.