Although formal diplomatic relations between Taiwan and South Korea ended in 1992, cultural and economic exchanges between the two nations have remained strong over the years. Between 1966 and the present, 93 universities in Taiwan have formed sister school agreements with 196 schools in South Korea, according to the Ministry of Education. Tallies from the Bureau of Foreign Trade show that bilateral trade has grown from US$3.5 billion in 1992 to US$26.7 billion in 2010.
“Currently, South Korea is Taiwan’s fifth largest trade partner, while Taiwan is South Korea’s ninth largest trade partner,” Liang Ying-ping, ROC representative to South Korea, said in an interview with Taiwan Today June 23.
Trade and commerce between the two sides is expected to increase significantly in the years ahead, now that Taiwan and mainland China have signed the Cross-Straits Economic Cooperation Framework Agreement. Since it offers preferential tariffs to exports from Taiwan, ECFA could induce businesses in other nations—such as those in South Korea—to invest in Taiwan, which is perceived by many as a gateway to mainland China.
“To South Korean businesspeople, Taiwan is a very good bridge,” said Lee Ju-tae, chairman of the Korea Importers Association, as quoted in a news article by Taiwan’s Broadcasting Corporation of China May 19. “They hope to make it into the [mainland] Chinese market by working with Taiwan.”
Kim Ki-mun, chairman of the Korea Federation of Small and Medium Business, shares Lee’s views, according to Liang. “Kim thinks ECFA will contribute a lot to the enhancement of cross-strait commercial exchanges, and that the trade pact will affect economic ties between Taiwan and South Korea to a certain degree,” Liang said, recalling the contents of a discussion he had with Kim.
“In the near future, Korea’s small and medium enterprises plan to form a delegation that will come to Taiwan to study how local businesses have succeeded in mainland China, and to learn from Taiwanese how to expand their businesses in the mainland,” Liang said.
Although trade relations between Taiwan and South Korea remain good, Liang concedes that bilateral investment levels could be higher. A report by the Taiwan Institute of Economic Research indicates that as of 2009, Taiwanese had made 477 investments in South Korea totaling US$935 million. “One of the reasons is that the two sides have not yet inked a trade agreement. The other is that our industries are too similar, with both showing strength in the information and communications technology sector,” Liang said.
“Actually, in order to promote bilateral commercial relations, a Taiwanese-South Korean economic cooperation forum was hosted in 2007, the first since diplomatic ties were severed in 1992,” Liang pointed out. “The event was a platform for exchanging opinions on commercial relations, and discussing and studying issues such as the feasibility of inking a free trade agreement. Although there is still a long way to go, we will work toward such a goal.”
In addition to economic exchanges, cultural and educational ties between the two sides are intensifying as well. A youth working holiday program, which was implemented Jan. 1 this year, allows Taiwanese and South Korean nationals aged 18 to 30 to apply for a one-year working holiday multientry visa.
“Taiwan and South Korea face the same problem of having a low birth rate and an aging society, so youngsters will play a very important role in the future,” Liang pointed out. “We hope that youths from both sides can use the one-year program to experience and learn about the language and culture of the other nation. Through interactions with local people, friendship can be bonded to further enhance bilateral relations.”
With regard to the education sector, Hankuk University of Foreign Studies in Seoul established an Institute for Taiwan Studies this May. “Seminars and workshops will be held from time to time to let Korean scholars and think tanks know more about Taiwan,” Liang said. “We hope they can meet with their counterparts in Taiwan and exchange views on the future development of Taiwan-South Korea relations.
“We encourage them to visit Taiwan and conduct field surveys across the nation, to better understand public opinion in Taiwan.” South Korea’s Anyang University and Hallym University both have similar institutes for Taiwan studies, Liang added.
The representative said the two sides can collaborate in several other areas as well, including meteorology and nuclear safety. “Taiwan is a part of the global village that we all live in,” he said. “Economic cooperation has become a trend, so we should push for functional cooperation with South Korea.”
Taiwan and South Korea both encounter typhoons in the summertime, Liang noted. “If we can cooperate on weather forecasts, we will be able to reduce loss of lives and properties.”
He also referred to the March 11 earthquake in Japan, which subsequently triggered the Fukushima nuclear plant crisis. “Like Japan, Taiwan is situated on an earthquake zone, and we must be prepared for similar disasters,” he said, adding that it would be advantageous for both ROC citizens and South Korean nationals if their governments can share information on nuclear safety.
According to Liang, the Koreans he has encountered, at every level of society, are very supportive of Taiwan. “Since the situation between North and South Korea is very sensitive, and as mainland China plays an important role in the Korean peninsula, Taiwan faces many obstacles in trying to expand its relations with South Korea.” Nevertheless, he added, “the communication channel in the public sector is unimpeded.
“Taiwan and South Korea are similar in many ways,” Liang pointed out. “They are democratic countries, located in the same region, and both face a communist neighbor. On the basis of these similarities, we should be able to come up with a strategic alliance.” (HZW)
Write to Grace Kuo at morningk@mail.gio.gov.tw