Issue From security with the US and economy with China to security with the US and economy with the world

Summary

The report argues that the long hard-line standoff between Washington and Beijing is likely to bring fundamental change to the global economic and trade order. In that environment, Korea's long-standing formula of relying on the US for security and China for the economy is becoming hard to sustain. Escaping excessive economic dependence on both powers is presented as the core foundation of Korean strategic flexibility. The authors therefore propose shifting to a formula of security with the US and economy with the world. Under it, Korea would reduce dependence on the two hubs while coordinating with like-positioned middle powers, keeping a dynamic balance with Washington and Beijing, repositioning cooperation with emerging connecting countries and widening exposure to the New Northern region and the Global South as potential markets and mineral suppliers.