Academic Report a study on South Korea’s policy for Arctic Logistics
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Academic Report A study on South Korea’s policy for Arctic Logistics December 2019 Graduate School of Youngsan University Department of Korean Business Name: Dalimov Sirojiddin Academic Report A study on South Korea’s policy for Arctic Logistics December 2019 Graduate School of Youngsan University Department of Korean Business Name: Dalimov Sirojiddin A study on South Korea’s policy for Arctic Logistics An Academic Report submitted to the graduate school of Youngsan University in partial fulfillment of requirements for the degree of Master of Korean Business December 2019
Current regulations of Korea for Arctic logistics………………….......18 - 25 Background to the creation of South Korea’s Arctic Policy……….18 - 20 Latest Korea’s ongoing “Master Plan” policy for the Arctic………..20 - 22 Specific moves under Each Korean Arctic Policy Plan…………….22 - 25 Korea’s Arctic Policy in the international field………………………..25 - 27 Prospects for Russia-Korea cooperation in Arctic logistics……………27 - 29 Further research of South Korea’s Arctic policy in the future………….29 - 31 Advantages and disadvantages of the Korea Arctic policy in the future…31 - 35 IV. Conclusion…………………………………………………………36 - 37 1. Summary of the study………………………………………………..36 2. Suggestions……………………………………………………………37 References………………………………………………………………..38 List of Diagrams/Figures…………………………………………………39 Introduction Background of the study Some areas are not divided by wars or social and political calamities attract much global notice and secure upright with the international importance like the Arctic routes do. Although it is far away, the Arctic has been one of the world’s top marks of favorite place, a region to which many nations in the Arctic (and nearby the Arctic Circle) have united their ways. States from East Asia, Southeast Asia and South Asia have considerably sped up their research exercises in the Arctic, in a bid to use in full content of chance suggested by the North Pole. The most bold matter of Asian nations unveiling a concern in the Arctic has raised interest of the mass minerals that the Arctic continent probably possess. The United States Geological Review’s estimates of the Arctic’s hydrocarbon resources are broadly famous: the Arctic region holds about 13 percent of the world’s oil reserves and 30% of it gas reserves those are yet to be explored, with the largest gas reserves are discovered in the Russian take of the Arctic.1 Moreover, in spite of the fast increase of alternative and nuclear energy, fossil fuels are still projected to dominate the energy sell till 2040. The Arctic continent has abundant possessions of ferrous, non-ferrous, peculiar and premium metals, and non-metallic minerals. The distinct undersea resources and the transit potential of the region’s main shipping passes, the Arctic Logistics and the Northwest Ways, are crucially precious. Upon this information, top Asian strong economies have demonstrated great economic development over last ten years. The population data in Asia is displaying good trends, and industrial progress is achieving boost, all of which has a considerable effect on the usage of mineral resources. Obtaining entry to substitute resources is a more urging matter for a soaring economy with a rising citizens than testing and predicting climate change – albeit learning the climatic and environmental phases of the Arctic has been known by the Asian Researchers to the Arctic Council as the main cause of growing their presence in the region. Surely, there is no denial that discussions on the issues of climate change usually apply to the Arctic like being the “kitchen of weather in the Northern Hemisphere”. Nevertheless, the concerns of non-Arctic participants in the region are not restricted to the effect that the Arctic climate could have on the quality of agriculture, or the happening of natural disasters, in Asia. Asian nations are eager to practically develop fishing industry in the Arctic waters and therefore supply their own food demand. Recently, the Arctic has stalled to supply an obvious answer to the question of whether or not mining mineral resources on the continental ground might be economically feasible, or indeed whether all year ways along the whole Northern Sea way with scenery to forming constant cargo transportation between Asia and Europe is really probable. These are matters for the future. However, the key argument is undefeatable – the Arctic is rich in resources. Also all the exertions of the Asia Pacific republics in the Arctic are featured to tackle the significant duty of finding new niches to promote their economical progress. Asian countries have been gaining the same estate like giant nation on a couple of financial indexes; in some examples, they have even beat them fairly. The Asia Pacific area accounts for 67 percent of the world’s economic growth and shows a peak level of stability in the face of the lowed global trade and the high volatility of the financial markets. Because the economic power of Asian nations continues to rise, so do their foreign policy outlines. Nevertheless, whilst it might be surely said that the dominance of the world economy has moved to the Asia, the dominance of global politic power belongs to the West. Purpose of the study The main purpose of this study is to know more about the development in the Arctic region and analyze South Korea’s role in the Logistic Shipping Routes. My aim is to emphasize South Korea’s Arctic Policy and its unique involvement in the developments. The economic account of Asian countries is not remarked in their power to reach world political labyrinth. By paying attention to the Arctic, Asian players are willing to leverage their benefit on the global arena and put their claim to the agenda of global strategic player. One of the traditional qualities of a world power has usually been the ability to forecast the power of the nation anywhere in our global village. This is evidently clear in regional calamities, when developing fresh and previously remote regions, and while natural or manmade catastrophes where a fast reaction to harsh provisions is critical. The sole nations that are absolutely competent of making a progress with the Arctic logistics, where these natural events are the standard, are those which already have the crucial manner, technology and purpose to tackle the urgent issues in a complicated situation. In my research report I intend to find out about why Asian partners joining in the development of territories of the Arctic coastal states could improve the level of responsible cooperation in the Arctic region, enlarge the understanding of the region far beyond its borders, and create the conditions for the formation of new intergovernmental and interregional cooperative connections. Regardless of their extremely limited experience in the Arctic and few relevant technologies to the Arctic development, the Asian countries are actively pursuing projects in the region, including: the creation and advancement of their own institutions to run such projects; the development of strategic documents that describe their priorities in the Arctic; the training of skilled employees; the development of specific industries; and the formation of network communication mechanisms. The scope of the study In this research report, I have tried to give the Korean policy of the Arctic and the potential for its advancement by the new Observer to the Arctic Cooperation – South Korea. I am going to cover the current laws and regulations regarding the Arctic Route. Moreover, there will be highlights on ongoing research, Master Plan, current developments and cooperation with Arctic Council nations. Most importantly, I will discuss the future positive outcomes of Korea’s Arctic Policy. The capabilities of this nation and the level of its involvement in Arctic planned projects are unique. However, South Korea should cooperate together with other countries in their desire to present that they have the right to study the Arctic independently and to become important participants in the region. In order to develop a better knowledge of the specifics of their approaches to these tasks, International Researchers are involved from developed countries to clarify their vision, drawing on the experience of their research into the area. At the moment, it is only by examining the methods of Asian nations to the Arctic that it may produce the greatest advantage when it comes to identifying new trends in the region in the medium term. II. Current status of Korean Arctic Logistics
When marking the sides that effectuated South Korea to consider stepping up its understanding the Arctic, special attention should be paid to the endeavors of Seoul to gain an objective assessment of the economic feasibility of the commercial development of the Arctic logistic Route. The prospects of using the new polar transport route to the West to a great extent stimulate the diplomatic and scientific presence of the Republic of Korea in the Arctic. Comprehension of the Arctic’s potential energy resources, the urge to successfully diversify sources of hydrocarbons, as well as mineral resources, is another strong reason in favor of the South Korean government – and South Korean businesses – focusing greater attention on the Arctic region. Moreover, the rising ambitions of other nations in the Arctic mean that they will be interested in the technologies and competitive manufactured goods offered by South Korea . Another set of issues that attract the sustained attention of the South Korean political elite is connected with the need to find proper responses to increasing environmental challenges. Furthermore, the economic and environmental problems related with the Arctic objectively affect the international community as a whole. Hence, Arctic issues undoubtedly fall within the frame of South Korean security and foreign policy, that is, those tasks that Seoul is attempting to solve both on a regional and on a global scale. 2. Korea’s interests in Arctic Logistics The background interests of the Republic of Korea’s long-term policy on the Arctic logistics might be traced back to early 1990s then the first comprehensive research on the Arctic from the South Korean perspective was conducted. The first international study of Arctic prospects was carried out in cooperation with the Geological Analysis of Japan in 1999. Cooperative research with China was instituted that same year, with the South Korean side took part in the study of the Bering and Chukchi seas aboard the Chinese Xue Long icebreaker. In the beginning of the 21st century, South Korean scholars initiated working contacts with their Russian counterparts at the Arctic and Antarctic Research Institute. However, the genuine polar research only got going in the 21st century, with the opening of the Dasan Arctic Science Station in Norway in 2002 and the construction of the Araon research icebreaker in 2009. Albeit the Arctic was not originally mentioned in the “Global Korea” national strategy, in practice the Lee Myung-bak administration organically introduced Arctic issues into the country’s foreign policy strategy. Hence, in 2008, the Republic of Korea asked to become an observer to the Arctic Council. In addition, a full-fledged propaganda campaign was unleashed at home and abroad to maintain the Republic of Korea’s Arctic policy, involving Presidential visits to Norway and Greenland. The late President’s administration, which came to power in 2013, progressed the country’s activity in the Arctic even further, relating it to the initiative aimed at growing the position of Eurasia in the Republic of Korea’s foreign policy, mainly supplying it with a firm basis and giving it consistency. At the early phase, it was crucial to end the duty that the President’s administration had started and become a regular participant in official, as well as informal, discussions among Arctic states. The task ordered by the President – to be granted permanent observer status in the Arctic Council – was achieved in May 2013 at a Ministerial Meeting held in Kiruna, Sweden. Similar status was presented to five other countries at the meeting (China, Japan, India, Singapore and Italy).The International Relation Department of South Korea called this the first main ambition of the Arctic policy developed by the President’s administration. Additional strategic targets were prepared in December 2013 and published in the “Arctic Policy of the Republic of Korea” government document, otherwise recognized as the “Master Plan”. The program for 2013–2017 posed four goals, the achievement of which demands the activities of state, scientific and private institutions to be coordinated in the following areas: • Empowering global cooperation in the Arctic, • Developing scientific research in the polar region, • Generating new business opportunities, including through active work within the Arctic Council, • Ensuring the safe functioning of institutions involved in the development of Arctic strategies, including those that influence the legal framework for exploring the Arctic. The decision has also been made to set up an information and service centre. The main functions connected with implementing the Republic of Korea’s strategy in the Arctic have been assigned to seven ministries and agencies: the Department of Waters and Fisheries; the Department of International Relations, which has appointed a person in charge – the Arctic Affairs Ambassador; the Department of Science and Research, ICT and Future Building; the Department of Trading, Industry and Energy Resources; the Department of Nature; the Department of Landfills, Infrastructure Building and Transportation; and the South Korea Meteorological Management. 3. Korea’s current Asian partners: Japan, China, and Singapore South Korea have been cooperating with Asian nations which are also involved in the developments of the Arctic area. These are the following states: China The importance of the Arctic in global geopolitical and economic processes has been growing lately due to the climate change and the emerging opportunities for using natural resources and communications. Chinese researchers and experts are paying close attention to this matter. So far, China has no official strategy in the region, but analysis of a number of documents allows for understanding of the key areas of the Chinese government’s policy and future plans in the Arctic. Beijing’s growing interest in the Arctic region is by no means accidental: significant changes have taken place in this area over the recent decades. Global climate change is opening the way to the development of new resources, and the Northern Sea Route (NSR) and Canadian Northwest Passage (NWP) are increasingly regarded as promising routes capable of changing the entire global trade architecture. China is primarily interested in the economic aspects of the Arctic development including investment and trade, as well as in new geopolitical opportunities for the state’s economic expansion. China is enhancing its presence in the Arctic, and the following factors underpin its interest: mineral resources deposits, new sea routes and the need for scientific research. The first two factors are clearly a priority but the third one provides legitimacy for China’s growing presence in the area. Beijing is investing into prospecting and exploration, as well as taking active part in developing foreign oil fields by offering the support of both Chinese technology and capital. China’s goal is to acquire foreign oil assets and develop oil fields in various regions around the globe. Currently the PRC imports oil and gas from over30 countries; 57% of Chinese oil consumption is delivered from the west Asia, 27% – from Africa; 13.5% – from Asia and the Asia Pacific; and 3.5% – from Latin America. In this context Chinese interest in Arctic oil and gas resources is quite understandable. However, due to complicated natural and climatic conditions the actual development of these resources is still in the future not only for China, but for the Arctic countries as well. Chinese companies have also demonstrated obvious interest in other mineral resources in the Arctic region, mainly in the Scandinavian polar areas. This pertains mostly to Greenland (part of Denmark) with its rich mineral resources capacities. For example, London Mining – a company with a Chinese stake (an investment held by Sinosteel and China Communications Construction Corp) – planned to reach an annual production level of up to 15 million tonnes of processed iron ore pellets before the end of 2015 at its Isua site. Japan
on freedom of navigation, the stability and security of commercial maritime communications and the unity of the global trade and economic space. The Arctic forms an integral part of this space and is increasingly included in global trade and economic processes. Arctic maritime routes are important to Japan for a number of reasons. Firstly, the Northern Sea Route that links Japan and Europe, and to which the Japanese government attributes the most intensive trade flows, is 40 per cent shorter than the traditional southern route via the Suez Canal. The southern route from Yokohama to Rotterdam is 20,742 km; the northern route is 12,038 km. In practice, this means substantial savings in terms of time and fuel, which reduces the cost of shipping, and increases the attractiveness of the Northern Sea Route. For example, the southern route takes 40 days, while the northern route takes only 25. Moreover, the southern route is associated with additional risks: ships have to travel through the South China Sea, which has been the site of increased international tensions in recent years in connection with the territorial disputes, as well as through the Strait of Malacca, where piracy continues to be a serious problem. The Northern Sea Route, which runs exclusively along the Arctic coast of Russia, would seem far safer in this regard. The risks for Japan are connected with the fact that the economic development of the Arctic, specifically the opening of new sea routes and the launching of projects to develop natural resources, could bring about major conflicts between individual countries. Japan anticipates that increased navigational activity in Arctic waters will inevitably lead to a change in the strategic balance of the region, as the changing climate in the Arctic Ocean will make it easier for a much wider class of warships to sail the waters. In other words, Japan foresees a situation in which the Arctic will transform from a kind of background to the strategic situation in the world into an arena of direct military confrontation and, under certain conditions, the “front line of defence” in standoffs between individual countries, specifically between the United States and Russia Federation. Japan is also concerned about China’s attempts to gain a foothold as a strategic actor in the Arctic. It can foresee a situation where China would deploy submarines in the Arctic that are equipped with submarine-launched ballistic missiles (SLBMs) and expand the navigational scope of ship, submersible, ballistic missile, and nuclear-powered in the Arctic Regional Place. According to the Japan Institute of International Affairs’ expert Hideki Asari, this will allow China to cover almost the entire land mass of the United States with the JL-2, giving it effective second-strike capabilities. This would in turn affect Japan’s vital security interests, the country being located under the cover of the United States’ “nuclear umbrella”. In this context, Asari recommends strengthening strategic cooperation with Washington to monitor the balance of powers in the Arctic, including stepping up efforts to enhance missile defence and the anti-submarine patrol system, especially in key areas such as the Soya and Tsugaru straits. In addition, Asari suggests developing United States–Japan cooperation in search and rescue operations at sea. In turn, according to the American military analyst Robbin F. Laird, Japan’s transition to the concept of “dynamic defence” in response to the increasing risks emanating from China and North Korea brings the task of developing the “twin anchor” policy, which is based on access to the waters of the Arctic and Indian oceans, onto the agenda. Laird argues that it is beyond the capabilities of Japan to ensure that access on its own, and that this requires close cooperation with the United States, especially in monitoring, surveillance and intelligence gathering Singapore Though Singapore does not have an official Arctic strategy, its engagements and actions in the region articulate its intentions clearly. Singapore’s stated motives in joining the Arctic have been based on several factors, namely the green defence, the advancement of a good Arctic place, reasonable economic growth and the people’s labor. These four pillars of Arctic engagement and interests, though more accentuated in some areas than others, have to a large extent remained constant since its admission . As Singapore is a low-lying island state with its highest elevation at only 163 m above sea level, the increase in water level due to the boiling of Arctic sea-ice is of serious concern for the state. To further illustrate its stake in the changing Arctic environment despite being a tropical island located about 7000 km away from the North, Singapore often highlights the 34 Arctic migratory birds that briefly stop in Singapore’s Sungei Buloh Wetlands Reserves en route along the East Asian-Australasian Flyway.164 Singapore’s statutory board, National Parks Board (NParks), has been actively engaging with other actors within the AC present team on Arctic Nature and Animals to track Arctic migratory birds. NParks is also organizing a Migratory Birds Initiative workshop that will take place in January 2017 in Singapore. Singapore has also been keen in its support for reliable maritime infrastructure and effective emergency responses in the region. This can be observed in the state’s active participation pertaining to maritime legal regimes in the development of the Polar Code, which was adopted by the International Maritime Organization in mid-2015 with aims of regulating ship safety in the Arctic and Antarctic.165 To further signify the state’s strong and long-standing commitment for safeguarding the international law of sea, including in the region, a joint declaration between Singapore and the Global Association for the Regulation of the Sea was signed in September 2015, designating Singapore as a neutral venue for the peaceful settlement of UNCLOS disputes in Asia. Singapore developed rapidly, attributing its success to its geopolitical position since the state is the second largest shipping port in the world after Shanghai. III. Korea’s policy for Arctic Policy Current regulations of Korea for Arctic Policy: Background to the creation of South Korea’s Arctic Policy The background interests of the Republic of Korea’s long-term policy on the Arctic logistics might be traced back to early 1990s then the first comprehensive research on the Arctic from the South Korean perspective was conducted. The first international study of Arctic prospects was carried out in cooperation with the Geological Analysis of Japan in 1999. Cooperative research with China was instituted that same year, with the South Korean side took part in the study of the Bering and Chukchi seas aboard the Chinese Xue Long icebreaker. In the beginning of the 21st century, South Korean scholars initiated working contacts with their Russian counterparts at the Arctic and Antarctic Research Institute. However, the genuine polar research only got going in the 21st century, with the opening of the Dasan Arctic Science Station in Norway in 2002 and the construction of the Araon research icebreaker in 2009. Albeit the Arctic was not originally mentioned in the “Global Korea” national strategy, in practice the Lee Myung-bak administration organically introduced Arctic issues into the country’s foreign policy strategy. Hence, in 2008, the Republic of Korea asked to become an observer to the Arctic Council. In addition, a full-fledged propaganda campaign was unleashed at home and abroad to maintain the Republic of Korea’s Arctic policy, involving Presidential visits to Norway and Greenland. The late President’s administration, which came to power in 2013, progressed the country’s activity in the Arctic even further, relating it to the initiative aimed at growing the position of Eurasia in the Republic of Korea’s foreign policy, mainly supplying it with a firm basis and giving it consistency. At the early phase, it was crucial to end the duty that the President’s administration had started and become a regular participant in official, as well as informal, discussions among Arctic states. The task ordered by the President – to be granted permanent observer status in the Arctic Council – was achieved in May 2013 at a Ministerial Meeting held in Kiruna, Sweden. Similar status was presented to five other countries at the meeting (China, Japan, India, Singapore and Italy).The International Relation Department of South Korea called this the first main ambition of the Arctic policy developed by the President’s administration. Korea was given observer status at the Arctic Council in Kiruna, Sweden, on May 15, 2013. The news was pleased for the Korean public and media, who saw it as a step towards Korea's arctic expansion. The press has paid particular attention to the economic advantages of the North Sea Route (NSR) and the associated assets. In 2008, the USGS estimated that Arctic had around 90 billion barrels of oil, 1,669 billion cubic foot of natural gas and 43 billion barrels of natural gas resource. The research institution clearly fueled the ambitions and dreams of Arctic development for Korea, a country that for up to 95 percent of its needs relies on imported oil. Therefore, extension into the Arctic region will improve the energy supply industry. Currently, it takes 24 days to travel 20,100 km from the Port of Busan to the Port of Rotterdam via the Suez Canal. The new sea path through the Northern Sea Route will reduce the total sailing range to 12,700 km, enabling travel within 14 days. Contrary to Korean public and mass media standards, though, it is hardly feasible for non-Arctic states like Korea to make free use of the Arctic or the Arctic Ocean. The five coastal Arctic nations, composed of Canada, Denmark, Norway, Russia, and the United States, proclaimed the Declaration of Ilulissat, which recognized the United Nations Convention on the Law of the Sea (UNCLOS) as the Arctic Ocean's primary legal regime. Through this declaration, the Arctic countries, under the sanction of UNCLOS, asserted sovereign rights and control of great economic zones, the continental shelf, among other advantages relevant to the Arctic Ocean contiguous to their coastline. The Korean government has therefore developed national-level policies that support Arctic Ocean sovereign rights belonging to the Arctic states, encouraged reciprocal trust-based collaboration, observed Arctic climate change, and committed to sustainable development as prior measures for expansion into the Arctic region. Since the century, Korea has been mindful of the Arctic and Antarctic's humanitarian and political importance. On the one side, through leaving the Antarctic Treaty Group, Korea has worked in the field of scientific research. On the other side, with the Arctic countries, Korea has encouraged various economic collaboration. In 1986, Korea entered the Antarctic Treaty Group, set up the Antarctic King Sejong Station in 1988, set up the Arctic Dasan Station in New-Ålesund, Norway in 2002, and signed the Svalbard Treaty in 2013. In fact, since 2008, Korea has been participating in summits with the Arctic countries. President Lee toured Russia, Greenland and Norway in 2012. Governments ' policies and plans, such as the Antarctic Research Simple Plan (2007-2011, 2012-2016), Policies for Developing Arctic Region Strategy (2012), the Revised Arctic Outline (2013), and the Korean Arctic Master Plan (2013), are behind the government's actions on Polar operations. The report would concentrate on the history to the 2013 Arctic Policy Basic Plan for Korea and the current challenges that are now before the Korean state. 1.2 Latest Korea’s ongoing “Master Plan” policy for the Arctic region Additional strategic targets were prepared in December 2013 and published in the “Arctic Policy of the Republic of Korea” government document, otherwise recognized as the “Master Plan”. The program for 2013–2017 posed four goals, the achievement of which demands the activities of state, scientific and private institutions to be coordinated in the following areas: • Empowering global cooperation in the Arctic, • Developing scientific research in the polar region, • Generating new business opportunities, including through active work within the Arctic Council, • Ensuring the safe functioning of institutions involved in the development of Arctic strategies, including those that influence the legal framework for exploring the Arctic. The decision has also been made to set up an information and service centre. The main functions connected with implementing the Republic of Korea’s strategy in the Arctic have been assigned to seven ministries and agencies: the Department of Waters and Fisheries; the Department of International Relations, which has appointed a person in charge – the Arctic Affairs Ambassador; the Department of Science and Research, ICT and Future Building; the Department of Trading, Industry and Energy Resources; the Department of Nature; the Department of Landfills, Infrastructure Building and Transportation; and the South Korea Meteorological Management. The Korean Arctic Master Plan, as displayed in the diagram below, includes ambition, policy targets corresponding to the ambition, outlines for reaching policy targets, and clear establishment duties assigned to each government department according to the topic of the plan. See below diagram 1. The Korean Arctic Master Plan's vision is as it flows: "Korea: The Leading Nation Opening up a Sustainable Arctic Future." It reflects the Arctic's desire for sustainable progress, plans to contribute proactively to the Arctic's future plans and, at the same time, intends to promote humanity's shared prosperity. The three proposed priorities that lead to the Arctic Policy plan are: (1) building up the Arctic Partnership which contributes to international society; (2) enhancing scientific research which leads to solving issues addressed by the global community; and (3) creating new Arctic markets by economic participation. Such policy goals demonstrate the Korean Arctic Perfect Outline’s specific course. It can be summarized as follows: (1) forming an Arctic Council working group; (2) establishing 91 regional and one-level cooperative products and building a relationship of confidence with the coastal countries of the Arctic Ocean by supporting local communities; and (3) planning to protect economic benefits by developing new Arctic ocean roads, oil and mineral resources, and growing the fisheries market. As shown above, the Korean Arctic Master Plan incorporates various needs and concerns. Through the program, the Korean government has unveiled the aim, which is to make Korea a country which meets the responsibilities of the present and future of the Arctic, while at the same time becoming a state which creates new technologies, both domestically and internationally. While the Korean government is planning for economic expansion into the Arctic, such as industrial development and trade collaboration, the government recognizes that building a relationship of mutual trust with Arctic coastal countries and their populations takes precedence by diligently serving an observer state's duty to protect the environment first. Download 460.29 Kb. Do'stlaringiz bilan baham: 
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