Joint Statement: The 34th Joint Plenary Session of the US-Korea Business Council and the US-Korea Business Council

Seoul, South Korea – On October 19-20, US and South Korean business leaders from the US-Korea Business Council and the Korea-US Business Council (the “Council”) held their 34th joint plenary session at the Confederation of Korean Industries in Seoul, South Korea. This was the first in-person conference since 2019.

The joint plenary highlighted the priority areas for US-ROK cooperation announced at the Biden-Yun summit in May. This includes critical and emerging technologies, supply chain resilience in critical industries, economic and energy security, global health and climate change. The council also discussed ways to strengthen bilateral ties and improve the business environment in the United States and South Korea to accelerate post-pandemic recovery. The Council reaffirmed its commitment to support the goals of both governments and expressed its readiness to work with them to implement the following recommendations.

1. Strengthen U.S.-South Korea economic ties to accelerate post-COVID-19 recovery.

The COVID-19 pandemic, along with Russia’s invasion of Ukraine earlier this year, has reinforced the need for greater cooperation between governments and the private sector to uphold the rules-based international order and address the severe negative impact on global supply chains. sexuality was highlighted. and economy. Our organization stands ready to work with the governments of both countries to restore and revitalize their economies. The private sector in the United States and South Korea will build stronger and more resilient economies, create better jobs, seamlessly deliver quality goods and services, and digitally and environmentally support for sustainable economic growth. We recognize that we will play an increasingly important role in driving thoughtful change. Against this backdrop, maintaining an open and stable environment for US-ROK trade and investment becomes critical. We therefore urge governments to:

• Pharmaceuticals and medical devices that eliminate trade restrictions that are contrary to the letter and spirit of the Korea-U.S.-Korea Free Trade Agreement (KORUS), such as restrictions on imports under Section 232 of the U.S. Trade Expansion Act and restrictions by the Korean government;

• We will continue to work on issues that may conflict with KORUS and the World Trade Organization (WTO) agreements, such as the electric vehicle tax credit enacted in the Inflation Control Act, in search of non-discriminatory solutions.

• Address key barriers to innovation and investment, including cumbersome administrative procedures, rigid labor rules, and overlapping rules and regulations.

• Create a business environment that appreciates the risks and rewards of investing in innovative industries such as the biopharmaceutical industry.

• Promote a regulatory environment that sustains innovation and growth in the digital economy, including refraining from discriminatory or trade-restrictive measures.

• Ensure regular public-private dialogue and appropriate time for industry to provide comments on business-related policies during the policy planning, development and implementation stages.When

• As a follow-up to the May 2022 US-ROK Joint Statement, upgrade the US-ROK currency swap facility to a long-term agreement or promote equivalent measures to bring further stability to the ROK exchange market.

2. Build resilient and reliable supply chains in critical sectors.

Supply chain security and resilience are essential to both the economic and national security of the United States, South Korea, and our allies. The COVID-19 pandemic has posed challenges for both governments and businesses, but the benefits of international trade to supply chain resilience and, especially, to strengthen and diversify supply chains for future crises, It also demonstrated the need for renewed cooperation among like-minded countries. In key strategic areas such as semiconductors, electric vehicle batteries, and pharmaceuticals. Growing geopolitical risks posed by Russia’s unilateral aggression against Ukraine have further heightened tensions. In this process, governments will need to work closely with the private sector to ensure that policy recommendations reject punitive approaches, new trade barriers and one-size-fits-all solutions. To that end, the Council encourages both governments to:

• Strengthen bilateral and multilateral cooperation with like-minded partners and work closely with the private sector to develop key industries including, but not limited to, semiconductor manufacturing, batteries, critical minerals, pharmaceuticals, and defense. Enhancing global supply chain resilience and market diversity in industrial and commercial aerospace.When

• Supporting corporate diversification and new investment efforts in a way that strengthens the resilience of entire supply chains and creates barriers to international trade and investment.

3. Promote regulatory cooperation in the digital economy and strengthen partnerships on critical and emerging technologies.

Digitally tradable goods and services are a key area of ​​competitive advantage and export growth for the United States and South Korea, and both countries, with their advanced economies, technological prowess, and large domestic markets, are highly dependent on each other’s digital goods and services. We offer an attractive market for providers. South Korea is also a major exporter of digital goods, especially strong content and creative industries. Amid the global proliferation of protectionist digital trade barriers and the buildup of discriminatory digital rules, the Council supports bilateral and multilateral trade through frameworks such as the Indo-Pacific Economic Framework for Prosperity (IPEF). We welcome discussions between the US and South Korean governments to coordinate stronger rules for digital trade in the United States. We stand ready to work with governments, asking them to:

• Update and expand the U.S.-ROK digital agenda through high-level, binding digital trade commitments, including the free flow of data across borders. Establishment of formal mechanisms under KORUS, such as a technical or digital committee to address ongoing bilateral digital issues. Promoting and enforcing good regulatory practices.

• Ensure that proposed digital economy regulations do not target specific businesses, impede innovation, or undermine cybersecurity, privacy, or the trust and convenience that consumers expect from their devices and services.

• Deepen government and industry debates on data governance to better understand the needs of a data-driven economy.When

• Strengthen cooperation with trusted 5G vendors to promote ICT services such as cloud computing and network infrastructure, supporting a competitive, open and non-discriminatory market.

4. Promote growth and investment in the biopharmaceutical and digital health industries.

The COVID-19 pandemic highlights the importance of international cooperation as part of prevention, preparedness, and response to infectious disease threats. The US-South Korea partnership is critical to stimulating growth in the biopharmaceutical and healthcare industries and ensuring an adequate pipeline of vaccines, therapeutics and technologies to combat the next pandemic. The Council recognizes the role the digital revolution has played in transforming all aspects of healthcare accelerated by the pandemic. The development and deployment of new technologies, such as telemedicine, artificial intelligence in diagnostics, and the use of care delivery algorithms, have forever changed the way we provide care. A key developer of digital health tools, the private sector will be a key partner for both governments in formulating viable, growth-promoting digital policies. Now is the time to ensure that the right policy architecture is in place to foster both innovation and delivery of digital health technologies while protecting patient privacy and access to data. To that end, the Council commits to working with the U.S. and South Korean governments to:

• Re-establish bilateral healthcare dialogues with relevant ministries to discuss healthcare implementation issues and deepen public-private partnerships in biopharmaceuticals and medical technology to promote research and lead to quality medicines and medical devices. increase patient access to

• We support transparent and predictable health and pharmaceutical policies, in line with global standards and practices, and ensure that export restrictions on essential products are deemed necessary and consistent with WTO regulations.When

• Promote global harmonization and open architecture of digital health data, share best practices related to data and privacy protection, strengthen policy frameworks for the use of personal medical records, and empower patients to digital health technology. improve access to

5. Strengthen energy security, promote decarbonization and enhance environmental sustainability.

The Council will support the United States and South Korea by enhancing energy security and bilateral cooperation across all energy sources, from oil and gas, to solar and wind, nuclear, batteries, and emerging technologies such as hydrogen. of governments are taking the time to decarbonise.

At a time when many countries around the world are using subsidies, regulatory discrimination, or other forms of government intervention to their domestic industries to their advantage, the United States and South Korea should do better. Coupled with the non-discriminatory treatment of our trusted international partners.

Against this background, the Council is determined to work with the U.S. and South Korean governments to promote investment in clean, reliable, affordable and secure energy sources. These investments provide the foundation for a stable global partnership that adheres to the following principles:

• Set informed, realistic and achievable climate goals through an open, consultative process that will generate economic growth and prosperity, energy security and international competitiveness.

• Wherever possible, use markets and public-private partnerships instead of direct subsidies and regulations, and promote policies consistent with free enterprise, free trade and open competition among domestic and foreign investors.When

• Recognizing the unique and important role of natural gas, along with nuclear power and renewable energy, as a major driver of long-term emissions reductions and carbon neutrality.

The Council agrees to hold the 35th Joint USKBC-KUSBC Plenary Session in Fall 2023 in Washington, DC.