South Korea and Singapore are set to elevate their bilateral relations to a strategic partnership in 2025, coinciding with the 50th anniversary of their diplomatic ties. This announcement came from President Yoon Suk Yeol during his visit to Singapore for a summit with Prime Minister Lawrence Wong.
The proposed partnership aims to strengthen cooperation in various sectors, with a particular emphasis on artificial intelligence (AI) and startups. This focus aligns with both nations' strengths and aspirations in the tech industry. South Korea ranks third globally in AI patent applications, while Singapore launched its National AI Strategy in 2019 to transform its economy.
In addition to technological collaboration, the two countries signed a memorandum of understanding (MOU) for cooperation in liquefied natural gas (LNG) supplies. This agreement is expected to contribute to the stability of the international LNG supply chain. Potential areas of cooperation include LNG swaps, joint purchases, and coordinated responses to supply chain crises.
The LNG cooperation is particularly significant given South Korea's position as the world's third-largest LNG importer and Singapore's role as an LNG hub. South Korea aims to increase its LNG imports to reduce reliance on coal and nuclear power, while LNG accounts for about 95% of Singapore's electricity generation. Singapore's LNG terminal on Jurong Island can handle up to 11 million tonnes per annum, complementing South Korea's world-leading LNG storage capacity.
This strategic partnership builds upon a strong foundation of economic ties. Both countries are members of the Regional Comprehensive Economic Partnership (RCEP) and benefit from the ASEAN-Korea Free Trade Agreement. South Korea and Singapore are known for their highly competitive economies, with South Korea ranking as the world's 10th largest economy by nominal GDP and Singapore recognized as a global financial hub.
The collaboration in AI and startups is poised to leverage the strengths of both nations. South Korea's rapidly growing startup ecosystem, supported by government programs, complements Singapore's reputation as a "startup paradise" due to its business-friendly environment. This synergy could potentially drive innovation and economic growth in both countries.
As both nations face similar challenges such as aging populations, low birth rates, and limited natural resources, this strategic partnership could provide opportunities for shared solutions and mutual support. The collaboration also extends to other areas where both countries excel, such as education and airport infrastructure, with South Korea's Incheon Airport and Singapore's Changi Airport consistently ranking among the world's best.
This strategic partnership marks a significant milestone in the relationship between South Korea and Singapore, promising to deepen ties and foster cooperation across various sectors, from cutting-edge technology to energy security.