In-Person Panel PS5.4

Charting Growth Trajectories: Comparative Perspectives on Development in East Asia

Let’s Build Some Ships, But How? An Analysis of South Korea’s Shipbuilding Industry from the 1960s to 2000s 

Dongkeun Lee 

From the 1960s to the 2000s, the Republic of Korea (ROK) witnessed the rapid development of its shipbuilding industry, establishing itself as one of the world’s largest shipbuilders. This article seeks to answer the question of what drove the rapid development of South Korea’s shipbuilding industry. It accomplishes this by examining both classical sea power theory and the unique South Korean shipbuilding development model of the 1960s to the 2000s. Drawing from primary sources obtained from the ROK Presidential Archive and secondary sources, including newspapers and scholarly articles, this paper concludes that a combination of classic drivers of sea power development – including maritime commerce and threats – and the unique South Korean model, characterised by government subsidies and investments in both commercial shipbuilding and warship construction, contributed significantly to the development of South Korea’s shipbuilding industry. Finally, by learning from South Korea’s experience, developing and middle-power countries looking to establish their shipbuilding industry should consider subsidising the industry in its early stages and contributing to a healthy ecosystem by investing in both commercial and warship construction.

South Korea's '3-D'Pproblem: De-risking and Diversifying in Response to China’s Economic Coercion 

David Hundt 

China has used coercive economic measures against South Korea since 2017 to retaliate for the installation of the THAAD anti-ballistic missile system, but little is known about the Korean strategy for responding to these measures. Informed by interviews with foreign policymakers, business leaders, and scholars of international relations in Korea, this essay reinterprets the politics of international trade in an age of great-power rivalry from the perspective of middle powers. It does so by using Albert Hirschman's insight that great powers tend to abuse the influence that stems from holding a dominant economic position against their smaller international counterparts, but in so doing create incentives for middle (and small) powers to reduce their exposure to such asymmetric trading relations. We use three cases to illustrate how South Korean firms and policymakers have responded with a strategy that seeks to manage the risks of co-existing with China ('de-risking' and 'diversification') rather than completing escaping from the Chinese economic orbit ('decoupling'). In doing so, we illustrate the impact of and limits to coercive statecraft and the strategy that Korea has pursued in response to its '3-D' problem.

Australia’s Future in the Securitised Global Economy 

Theo Mendez 

The modern economy is currently being reshaped by two forces: digitisation and decarbonisation, as countries race to reach net zero emissions by 2050. This transformation is complicated, however, by a concurrent process of securitisation that is seeing some of the most important technologies for this transition become the subject of intense geopolitical competition. Three resources stand out: batteries, semiconductors, and hydrogen, all of which have in some form been constructed as ‘critical’ by various state and non-state actors. This poses two questions. First, what are the implications of this securitisation for the structure of trade in the new global economy? And second, what does it mean for Australia; a country that sees an opportunity to value-add within new resource supply chains? This presentation draws on initial findings from ongoing doctoral research into the contemporary transformation of the global economy, which show that Australia’s ability to embrace its role as a ‘renewable energy superpower’ in the Asia-Pacific is affected by the securitisation of these resources in the region. This, in turn, has broader implications for how smaller countries can achieve prosperity in a global economic context where security is more important than efficiency.

Decoding Chinese, Japanese and South Korean strategic ambitions, approaches and challenges in the era of evolving strategic competition in the Indo-Pacific: A Comparative Study

Alica Kizekova

This comparative study aims to decode the strategic aspirations of China, Japan and South Korea as a window of analysis into Asian futures. Factors contributing to this analysis are a consideration of historical legacies, the North Korean issue, tensions in the Taiwan Strait, and the ongoing war in Ukraine. The paper incorporates neorealism and social constructivism as the theoretical framework within which to interpret state strategies and tools. China, as a rising global power, has deployed a number of strategies, notably the Belt and Road Initiative to enhance connectivity and expand its influence through economic and infrastructure projects. China's military modernisation and assertive actions in the South China Sea demonstrate its desire to establish regional dominance. Neorealism helps explain China's pursuit of power and security in the region. Japan, on the other hand, has a complex history to navigate and a future dependent on a judicious balance between economic relations with China and its security alliance with the United States. Japan's focus on technological innovation and its efforts to strengthen regional partnerships reflect its desire to maintain stability and influence in the Indo-Pacific. Social constructivism helps explain Japan's emphasis on norms, ideas, and cooperation, including participation in minilateral platforms such as the Quadrilateral Security Dialogue. South Korea’s proximity to North Korea informs its  strategic ambitions for national security and stability on the Korean Peninsula. This is being advanced through a focus on economic development, technological advancements, and diplomatic engagement with regional actors. Cooperation between South Korea and Japan, as well as with other like-minded countries, faces significant challenges due to deep-rooted historical grievances and mistrust. Overcoming these challenges will make a significant impact in shaping Asian futures, but for this to occur much work is still to be done in the form of a commitment to reconciliation, dialogue, and a shared understanding of the importance of cooperation in addressing common regional and global challenges.