[Title] Korea-ASEAN Solidarity Initiative (KASI)

I. Background: ROK's Indo-Pacific Strategy and KASI

Republic of Korea's Strategy for a Free, Peaceful and Prosperous Indo-Pacific Region, initially announced on 11 November 2022 at the 23rd ASEAN-ROK Summit in Phnom Penh, underscores ROK's commitment to increase its role and contribution in the region as a Global Pivotal State (GPS). The Strategy places a special emphasis on ASEAN, which is at the heart of the Indo-Pacific, as ROK's key partner in building peace and shared prosperity in the Indo-Pacific region. The initial unveiling of the visions and principles of ROK's Indo-Pacific Strategy at the ASEAN-ROK Summit well demonstrates ASEAN's prominence in this new doctrine. Indeed, the Strategy highlights ROK's commitment to deepen bonds with ASEAN based on its firm support for ASEAN Centrality and the principles of the ASEAN Outlook on the Indo-Pacific (AOIP).

To put this commitment into action, the ROK launched the Korea-ASEAN Solidarity Initiative (KASI) as a regional policy specifically tailored to ASEAN within the framework of its Indo-Pacific Strategy. KASI builds on the existing solid partnership with ASEAN spanning trade, economy and social-cultural areas towards fostering a more comprehensive partnership that encompasses cooperation in security (both traditional and non-traditional) as well as future and emerging areas.

II. Importance of Cooperation with ASEAN

Situated between the Indian and Pacific Oceans, ASEAN occupies a geostrategic position across major arterial sea lanes such as the Straits of Malacca and the South China Sea. In fact, the South China Sea accounts for roughly 64% and 46% of ROK's oil and natural gas imports respectively, making it one of ROK's most important energy security routes.

ASEAN is also one of the world's fastest growing regions. With a combined population of around 660 million (the world's third most populous region), a cumulative GDP of around 3.35 trillion USD, and a post-COVID 19 recovery growth rate projected around 5% annually, ASEAN today is the fifth largest economy, on track to become the fourth largest by 2030. As ASEAN transforms into a single market and production base under the ASEAN Community Vision 2025, the region is well poised to become the world's next manufacturing hub and a key player in global and regional value chains. Today, ASEAN is also at the center of global and regional supply chains, making the region an attractive partner for economic security cooperation.

This geopolitical and economic weight has consolidated ASEAN's role as the anchor of regional multilateralism. Today, ASEAN is the key driver of regional cooperation in political-security, economic and socio-cultural areas through multiple ASEAN-led mechanisms, including the ASEAN+1, ASEAN+3, EAS (East Asia Summit), ARF (ASEAN Regional Forum), ADMM-Plus (ASEAN Defense Ministers' Meeting Plus) and the RCEP (Regional Comprehensive Economic Partnership).

Since establishing dialogue relations in 1989, the ASEAN-ROK partnership has made great strides across the entire spectrum of economic and social development. Today, ASEAN is ROK's second largest trading partner and the ROK is ASEAN's fifth largest one. ASEAN is also ROK's second largest investment destination and the ROK is ASEAN's sixth largest source of foreign direct investment. It is also the most popular travelling destination for Koreans who make up the second largest group of foreign visitors, and in 2019, pre-COVID19, over 2.3 million Southeast Asians visited Korea. ASEAN hosts around 17,000 local branches or subsidiaries of Korean companies, and is also ROK's largest partner for development cooperation with around one-quarter to one-third of ROK's bilateral ODA flowing into the region annually. As such, ASEAN and the ROK have conspicuously evolved into indispensable partners to each other.

Going forward, the ROK will continue to prioritize its cooperation with ASEAN given the mutually beneficial nature of the relationship. The ROK, with its technological and innovative edge, will remain ASEAN's closest partner in its efforts toward community-building, sustainable development, and integration into the regional and global economy to unleash the region's vast growth potential. ROK's and ASEAN's continued commitment to regional peace, stability and prosperity will enable the two to diversify cooperation and reinforce multilateralism, in view of the daunting challenges facing the region and the world including growing uncertainties and complexities associated with major powers rivalry, reshaping of supply chains, aftermath of the pandemic and the rise of economic nationalism. In this regard, the ASEAN-ROK partnership is aptly positioned to become the nexus of cooperation in the Indo-Pacific region.

III. Eight Core Lines of Effort

To implement KASI, the ROK identified priority areas of cooperation after meticulous review of ASEAN's major initiatives and goals as outlined in the ASEAN Community Vision 2025, ASEAN Outlook on the Indo-Pacific, ASEAN Comprehensive Recovery Framework (ACRF), and the Initiative for ASEAN Integration (IAI) among others, as well as the results of the 23rd ASEAN-ROK Summit. These include, but are not limited to:

Defense Cooperation; Maritime Security; Defense Industry Cooperation; Economic Security; Digital Trade and Future Industries; Climate Change and Environment; Public Health; Sub-regional Cooperation; Political Cooperation; People-to-people exchange

The priority areas are consolidated into eight core lines of effort which are also aligned with the three key visions of ROK's Indo-Pacific Strategy, namely, freedom, peace and prosperity.

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1. Upgrade the ASEAN-ROK partnership and strengthen bilateral relations with ASEAN Member States (AMS)

The ROK, at the 23rd ASEAN-ROK Summit in November 2022, proposed to establish a Comprehensive Strategic Partnership (CSP) with ASEAN in 2024 on the occasion of the 35th anniversary of dialogue relations. This will broaden and deepen the existing Strategic Partnership, established in 2010, to better reflect the evolving realities of ASEAN-ROK cooperation in defending and promoting freedom and rules-based multilateral order in the region. In this vein, the proposal by Viet Nam, ROK's country coordinator, to hold the ASEAN-ROK Day in 2023 will be an opportunity to take stock of the existing partnership and chart the course for the CSP. As we work on the ASEAN-ROK CSP, the ROK will:

- broaden cooperation to the priority areas identified under KASI by building on the existing achievements of ASEAN-ROK cooperation; and

- enhance consultation and cooperation with AMS for possible deliverables in leading up to the establishment of CSP in 2024.

Strengthening bilateral relations with individual AMS will continue to be an important part of ROK's policy vis-à-vis the region. To this end, the ROK will:

- increase bilateral communications and consultations through expanded highlevel exchanges, including Summit meetings;

- strengthen bilateral policy dialogues among foreign ministries and consider a 2+2 (foreign and defense) dialogue format for enhanced strategic and security network and consultation;

- adopt a tailored approach vis-à-vis individual AMS by taking into account the varying priorities of each country from defense, defense industry, reliable supply of critical minerals (nickel, rare earth elements, copper, etc.) and related technical cooperation (exploration and mining) to digital transformation, future industries (e-mobility, batteries, renewable energy and etc.), and climate change among others;

- continue to promote diversification in economic and trade cooperation; and

- support capacity building of Timor-Leste for building a stronger ASEAN Community.

2. Enhance ASEAN-ROK cooperation within ASEAN-led mechanisms

In implementing KASI, ROK's unwavering support for ASEAN Centrality will be clearly demonstrated through its active engagement in ASEAN-led regional architecture. In this context, the ROK will:

- give priority to high-level participation in ASEAN-related Summits and highlevel meetings of the ASEAN+1/+3, EAS, ARF, and ADMM-Plus among others; and

- strengthen the value of and support effective implementation of initiatives such as the ASEAN Plus Three Emergency Rice Reserve (APTERR), Chiang Mai Initiative Multilateralization (CMIM), ASEAN Plus Three Center for the Gifted in Science, Manila Plan of Action to Advance the Phnom Penh Declaration on the EAS Development, ARF activities on confidence building measures and preventive diplomacy, and the seven Expert Working Groups (EWGs) of the ADMM-Plus.

The ROK recognizes that its Indo-Pacific Strategy and the AOIP share the common value of promoting peace, stability, and prosperity in the region. By enhancing the complementarities of its Indo-Pacific Strategy with the objectives and principles of the AOIP, the ROK is committed to supporting the mainstreaming of AOIP's four priority areas (maritime cooperation, connectivity, SDGs, and economic and other areas of cooperation) and undertaking substantive, practical and tangible cooperation on the agreed areas. To this end, the ROK will:

- propose an ASEAN-ROK joint leaders' statement with regard to cooperation on the AOIP that will mutually reinforce the principles laid down in the AOIP and ROK's Indo-Pacific Strategy; and

- launch a flagship project (amounting to 20 million USD) to promote cooperation among the AOIP's four priority areas through the ASEAN-Korea Cooperation Fund (AKCF).

The ASEAN Leaders' Declaration on Mainstreaming Four Priority Areas of the AOIP within ASEAN-led Mechanisms adopted at the 40th ASEAN Summit in November 2022 welcomes increased engagement by dialogue partners through cooperation on the AOIP. As KASI recognizes the synergy and benefits of collaborative efforts, the ROK will:

- expand cooperation and coordination with other ASEAN dialogue partners through enhanced policy dialogue on ASEAN; and

- explore and strengthen linkages among ROK's projects on youth exchange, maritime connectivity, and public health (including vaccine) and those of other ASEAN dialogue partners to promote practical cooperation in a trilateral format (ROK, AMS, Dialogue Partners).

3. Expand ASEAN-ROK comprehensive security cooperation

The ROK intends to augment its strategic relevance in the region by broadening the scope of strategic cooperation with ASEAN on regional security issues and contributing to the rules-based multilateral order in the region. As KASI is aimed at stepping up maritime cooperation with ASEAN, the ROK will:

- support AMS' maritime law enforcement capacities through cooperation on transfer of decommissioned ships, and logistics supplies, training for counterterrorism, counter-piracy and search & rescue operations;

- take active part in joint naval exercises organized and/or participated by the AMS (mutual observation, participation, etc.);

- set up bilateral channels of maritime cooperation with AMS, and enhance existing policy dialogue on maritime affairs with the Philippines;

- develop impactful cooperation projects under the BIMP-EAGA-Korea Cooperation Fund (BKCF) for better management of maritime resources and marine environment;

- initiate the project on Reducing Marine Plastic Litters in the East Asian Seas (9 million USD / 2023-28); and

- not accept unilateral change of status quo by force; continue to reaffirm the importance of maintaining and promoting peace, stability and freedom of navigation and overflight in the South China Sea, and peaceful resolution of disputes in accordance with universally recognized principles of international law, as reflected in the 1982 UNCLOS.

Building a safer and more secure cyberspace is also a critical part in promoting rules-based multilateral order in the region. To this end, the ROK will:

- increase contribution in the region's efforts to promote cyber security through its co-chairmanship at the ARF Inter-Sessional Meeting (ISM) on ICTs Security and the ADMM-Plus EWG on Cyber Security;

- explore ways to generate synergy between the Cyber Working Group of Seoul Defense Dialogue (SDD) and the ADMM-Plus EWG on Cyber Security; and

- put into action the ASEAN Cyber Shield Project (10 million USD / 2023-25), which focuses on enhancing ASEAN's cyber security capability and supporting AMS's safe and effective digital transformation.

The ROK seeks to be a reliable partner for Southeast Asian countries in building defense capabilities. Leveraging on ROK's military and technological edge, KASI aims to expand cooperation on defense industry with ASEAN. In this regard, the ROK will:

- consolidate existing partnerships while exploring new and potential partners for increased defense industrial cooperation; and

- facilitate cooperation on military logistics on the occasion of the annual ASEANROK Plus International Forum on Logistics (KAIF).

4. Promote ASEAN-ROK strategic coordination

In 2021, ASEAN and ROK held its first informal Defense Ministers' Meeting in order to exchange views on both traditional and non-traditional security challenges and enhancing understanding of their respective strategic perspectives. Recognizing the benefits of multi-layered channels of communication to ensure continued progress in defense cooperation, the ROK will:

- work with AMS to have a regular gathering among ASEAN and ROK Defense Ministers;

- host a regular meeting among defense vice-ministers on the sidelines of the annual SDD; and

- promote networking and partnership among think-tanks of ASEAN and the

ROK, including the holding of a track-2 regular forum on defense cooperation which would serve to identify new areas of cooperation.

To further translate ASEAN-ROK defense cooperation into concrete action, the ROK will:

- deepen its involvement to the seven EWGs of the ADMM-Plus; and

- implement the 12 action lines identified in the ROK-ASEAN Defense Cooperation Plan, which follows up on the results of the informal ASEAN-ROK Defense Ministers' meeting and are aligned with the Indo-Pacific Strategy

The complete denuclearization of North Korea is essential for sustainable peace and security on the Korean Peninsula, in the Indo-Pacific region and beyond. For many years ASEAN has been a strong supporter of ROK's North Korea policy and has been ready to play a constructive role, including through ASEAN-led platforms such as the ARF in promoting a conducive atmosphere for peaceful dialogue among concerned parties. To continue the close cooperation on the North Korean nuclear issue, the ROK will:

- garner ASEAN's continued support for ROK's efforts to achieve a denuclearized, peaceful and prosperous Korean Peninsula; and

- use high-level engagement opportunities to enhance bilateral cooperation on Korean Peninsula issues.

5. Expand cooperation in future and emerging areas for shared prosperity and development

In order to accelerate post-pandemic recovery and resilient growth, ASEAN will leverage on the rapid digital transformation to seize opportunities presented by new digital technologies. In these efforts, the ROK is an optimal partner in view of its global prominence in science and technology and digital innovation. Against this backdrop, KASI envisions increased cooperation with ASEAN in future industries, including in areas of digitalization, e-mobility and smart cities which will help ASEAN's leapfrog into the new digital economy and create new business opportunities. Specifically, the ROK will:

- launch a flagship project laying groundwork and building capacity in sectors including AI (artificial intelligence) and joint data for digital innovation; launch the ASEAN-ROK Science and Technology Cooperation Center in Jakarta;

- operate the Digital Government Cooperation Center (DGCC) established in some AMS to support improvement of public services through digital technologies and innovation;

- initiate e-mobility projects, including the Installation of Solar Charged E-vehicle System for GHG (greenhouse gas) Reduction (Indonesia) and the ASEANROK EV Safety Management Training;

- promote Korean companies' investment and entry into the ASEAN e-mobility market to foster a thriving e-mobility ecosystem in AMS; and

- launch the Capacity Building Project for the Data-driven Smart City Planning (5.4 million USD / 2023-27) and encourage Korean companies' participation in smart city projects in the AMS.

The ASEAN-Korea Free Trade Agreement (AKFTA) has so far played a catalytic role in broadening and deepening ASEAN-ROK cooperation in a variety of economic sectors. To ensure that the AKFTA remains relevant and responsive to evolving regional and global economic landscape, the ROK is considering to upgrade the agreement, and will:

- complete the ongoing Joint Review Study to explore ways to undertake possible upgrade of the AKFTA as well as the Digital Trade Research; and

- facilitate discussions on the potential upgrade of the AKFTA taking into account emerging issues such as digital trade among others.

Under KASI, a special emphasis is placed on fostering a network of cooperation with ASEAN to strengthen economic security amid global and regional economic uncertainties. To this end, the ROK will:

- work with AMS to diversify supply chain for greater resilience and stability, including through bilateral MoUs on supply chain cooperation and strengthened engagement in existing economic dialogues platforms, such as the ASEAN Economic Ministers (AEM)-ROK Consultations and bilateral Joint Committee Meetings on Economic Cooperation (JCEC); and

- work with Southeast Asian partners of the Indo-Pacific Economic Framework (IPEF) by engaging in the negotiations on trade, supply chain, clean economy and fair economy and by exploring substantive and mutually beneficial projects on digitalization, e-mobility and clean economy among others.

6. Jointly address and respond to regional and global challenges

In today's globalized and interconnected world, no single country can address regional and global challenges alone, as was clearly demonstrated during the COVID-19 pandemic. Cooperation among countries is the only viable way to effectively respond to transboundary threats such as climate change and public health crises. In this regard, KASI will support ASEAN's efforts to tackle challenges stemming from climate change and environmental crises. In these efforts, the ROK will:

- launch the Partnership for ASEAN-ROK Methane Action (PARMA) and the inaugural project on ASEAN-Korea Cooperation for Methane Mitigation (AKCMM) (19 million USD / 2023-26);

- initiate a multi-year project with a view to establishing a center to support ASEAN's carbon neutrality and green transition efforts;

- work in partnership with the ASEAN Center for Climate Change (ACCC) to strengthen collaboration on climate action;

- strengthen cooperation with ASEAN on environmental issues, by implementing the project on Clean Air for Sustainable ASEAN (CASA) (11 million USD / 2023- 26), and by expanding AMS's participation in the Green Transition Initiative (GTI), which is a multilateral environmental cooperation platform led by ROK and Indonesia; and

- ensure effective implementation of regional and global climate-related

initiatives by concluding bilateral framework agreements with the AMS and by actively engaging in the ROK-ASEAN Dialogue on Environment and Climate Change.

To bolster ASEAN's preparedness for future health crises and enhance resilience of the region's public health system, the ROK will:

- initiate the project on Capacity Building for Infectious Disease Preparedness and Response (5 million USD / 2022-26).

- step up cooperation with AMS on COVID-19 treatment and vaccine development; and

- support training on vaccine and pharmaceutical production through the WHO-designated Global Biomanufacturing Workforce Training Hub.

Sub-regional cooperation constitutes an integral part of ASEAN-ROK cooperation under KASI, particularly with regard to narrowing the development gap in the region. To strengthen the Mekong-ROK and the BIMP-EAGA-ROK cooperation, the ROK will:

- explore ways to resume the Mekong-ROK high-level meetings to inject momentum to many of the existing Mekong-ROK projects as well as initiate new projects;

- address issues and needs specific to the Mekong region, such as water management, agriculture and rural development, forestry, and environment-related matters through projects funded by the Mekong-Korea Cooperation Fund (MKFC);

- increase engagement in regional platforms including the Ayeyawady-Cho Phraya-Mekong Economic Cooperation Strategy (ACMECS) and the Friends of Mekong (FOM), while also exploring linkages with external partners to generate synergy in the region's development projects; and

- identify and implement practical projects under the BIMP-EAGA-Korea cooperation framework.

7. Promote future generation exchanges as drivers of future prosperity

Robust people-to-people exchange has laid the solid foundation of mutual understanding and cooperation between ASEAN and ROK. As the region fully recovers from the Covid-19 pandemic, people-to-people exchange between ASEAN and ROK is expected to regain traction to pre-pandemic-levels. Against this backdrop, the ROK will place greater emphasis on future generation exchanges that will spur cooperation for future prosperity. The ROK will:

- expand scholarship programs such as the Global Korea Scholarship (GKS) and KOICA Fellow Program (CIAT); and

- strengthen women empowerment and TVET (technical and vocational education and training) programs in AMS.

To promote greater friendship and solidarity among the peoples of AMS and the ROK, and advance the development of ASEAN Socio-Cultural Community, the ROK will:

- reinvigorate cultural exchanges and tourism programs including through the ASEAN-Korea Center in Seoul and ASEAN Culture House in Busan; and

- expand cooperation in the sports sector through capacity building programs (training methods and administration).

8. Increase ASEAN-ROK cooperation resources including the doubling of the three ASEAN-related Cooperation Funds

At the 23rd ASEAN-ROK Summit in November 2022, ROK President Yoon Suk Yeol pledged to significantly increase the three ASEAN-related cooperation funds to support meaningful, substantive and mutually beneficial cooperation between ASEAN and the ROK within KASI. Over the course of the next five years by 2027, the ROK will:

- channel approximately 200 million USD (est.) into ASEAN-ROK cooperation projects through the three ASEAN-related cooperation funds; and - to this aim, increase the annual volume of the AKCF to 32 million USD, the MKCF to 10 million USD, and the BMCF to 6 million USD respectively.

ROK's Official Development Assistance (ODA) will also continue to be an essential important resource for development cooperation. For many years, the ASEAN region has been ROK's largest development partner and the ROK will continue to expand this partnership to support ASEAN' community building efforts as well as sustainable development of the AMS. To this end, the ROK will:

- focus loan projects funded by the Economic Development Cooperation Fund (EDCF) on infrastructure, digital transformation, and green recovery, and renew bilateral EDCF Framework Arrangements (F/A) to enable large-scale projects; and

- prioritize grant projects carried out by Korea International Cooperation Agency (KOICA) on green, digital and health cooperation, identify new flagship projects, and seek linkages and synergies among projects across sectors and collaborate with other development partners. /End/