The Asia-Pacific Economic Cooperation (APEC) 2025 summit will be held in Gyeongju, North Gyeongsang Province, from Oct. 31 to Nov. 1, 2025. Since its launch in 1989, APEC has grown into a central axis of regional economic integration and multilateral cooperation. A total of 21 economies, including Korea, the United States, China and Japan, are members. The influence of APEC members is considerable. As of 2024, they account for about 62% of global gross domestic product (GDP) and about 48% of global trade volume. It is not just about size. The bloc is also the most dynamic in the world and forms the core of global supply chains. APEC's most notable feature is that, unlike the World Trade Organization (WTO) and the European Union (EU), it is a cooperative body based on voluntary cooperation and consensus rather than legally binding rules. This flexibility plays an important role in enabling countries with different political and economic systems to freely discuss a wide range of agendas and respond quickly to new challenges. APEC is also of strategic significance for Korea. Korea's trade dependence (the ratio of exports and imports to GDP) exceeds 70%, and as of 2024, about 73% of Korea's exports go to the APEC region. In particular, this APEC carries great weight for Korea's national interests, as the global trade order is being reshaped and the United States and China will meet within a multilateral framework.
APEC as a platform for public-private exchange and cooperation
An important feature of APEC is that it is an intergovernmental consultative body with a multilayered governance structure that includes the participation of corporations, academia and civil society. Notably, the "APEC CEO Summit" is held alongside the leaders' meeting, creating an opportunity for member economy leaders and chief executive officers (CEOs) of global corporations to engage in direct dialogue. Such venues can offer Korean corporations opportunities to identify investment partners in emerging markets and explore technology cooperation. It is highly significant that corporations, academia and civil society directly participate in policy discussions and voice their views. This provides an institutional channel through which the voices of private actors can be reflected in various tasks such as economic cooperation, the establishment of technical standards, and the stabilization of supply chains. This means APEC is not just a diplomatic stage, but a complex platform where industrial policy formation and inter-corporate network building occur simultaneously. Even if not immediately visible, it can become a catalyst that leads to significant influence.
Advancing free trade and establishing digital trade norms
APEC's core objective, as specified in the Bogor Declaration1), is to realize trade and investment liberalization in the region. In fact, the average intra-APEC tariff fell from 17% in 1989 to below 5% in 2024, marking major progress. Recently, its role has regained attention amid the spread of protectionism, including U.S.-China hegemonic rivalry, expanding industrial subsidies in the EU and the United States, and the bloc-ization of supply chains. This APEC leaders' meeting is expected to address as key agendas the establishment of digital trade norms, the expansion of trade in services, and the easing of non-tariff barriers. As the country with the world's third-largest e-commerce market and globally elevated standing in K-content, Korea can take a leading role in setting digital trade norms. If discussions advance on cross-border data transfer rules or opening cloud service markets, it will present opportunities for our information and communications technology (ICT) corporations.
Opportunities to stabilize and diversify supply chains
The APEC 2025 summit is also highly significant from a global supply chain perspective. U.S.-China rivalry and geopolitical conflicts erupting around the world have exposed vulnerabilities in global supply chains. Global semiconductor supply is concentrated in three Northeast Asian countries—Korea, Taiwan and Japan—and more than 60% of lithium, nickel and cobalt, key battery materials, is concentrated in specific countries. APEC is the optimal venue to swiftly produce multilateral cooperation mechanisms, such as building early warning systems and joint stockpiling networks. Korea already serves as a key hub in the region for semiconductors, batteries and shipbuilding. Building on this strength, Korea should take a leading role in discussions on Trusted Supply Chains.
Institutional foundations for future technological innovation and cooperation
APEC is also a platform for technology cooperation. Member economies' technological capabilities and market sizes are complementary. The United States has strengths in artificial intelligence (AI) algorithms and the graphics processing unit (GPU) ecosystem; Korea and Taiwan in semiconductors; Japan in advanced materials and equipment; and Southeast Asia in human resources and mineral resources. If APEC systematizes this complementarity, joint research and development could create synergistic innovation. In particular, attention should be paid to AI and advanced semiconductor technologies, which are core technologies that shape 21st-century economic power and yield strong cooperative effects. In 2023, Korea ranked sixth in the "Global AI Index," setting a goal of joining the world's top three in AI. In the global semiconductor foundry market, Korea held an 18% share as of 2024, and in memory semiconductors, it maintains an overwhelming share and influence. Korea's technology startups are also showing rapid growth in healthcare, finance and autonomous driving, and these sectors can be expected to deliver strong results through linkage and cooperation in addressing common challenges facing countries, such as population aging. At the APEC 2025 summit, Korea should work to establish an institutional foundation for cooperation by proposing the creation of an "AI and semiconductor joint research fund," a "youth science and technology talent exchange program," and the establishment of "data-sharing principles."
Efforts needed for a successful event
It has been 20 years since an APEC summit with such multifaceted significance was held in Korea. The government has undertaken significant preparations, but to successfully hold this event and maximize its impact, the following areas deserve emphasis. First, there is a need to work on institutionalizing the public-private cooperation platform. It may be effective to establish a government-level "APEC corporate support program" so that not only large corporations but also small and medium-sized corporations and startups can participate in APEC discussions together. For example, promoting concrete events such as an "APEC startup pitch day" in connection with the Korea Trade-Investment Promotion Agency (KOTRA) would help. Second, this should serve as an opportunity to secure leadership in building supply chain trust. Korea faces difficulties in securing critical minerals, including rare earths. If Korea proposes establishing an "APEC joint mineral stockpiling agency" and "joint research on recycled materials," it could strengthen its status as a supply chain hub nation. Third, efforts are needed to expand exchanges of technological talent. Preparing programs for exchanges of young scientists among member economies, joint master's and doctoral programs, and internship networks would lay the groundwork for long-term technological cooperation. Korea already has experience operating the Korea-ASEAN AI Youth Academy2). An expansion at the APEC level is worth considering. Lastly, stronger linkage with domestic policy is necessary. A structure is needed to reflect what is agreed at the APEC summit in industrial policy and trade strategy. Korea should identify the intersections between the Korean-style supply chain strategy, the national AI strategy and APEC summit agendas, and based on that, draw up a follow-up execution roadmap.
Glossary
1) Bogor Declaration
This declaration was adopted at the APEC summit held in Bogor, Indonesia, in 1994. It contains provisions related to trade and investment liberalization in the Asia-Pacific region. The Bogor Declaration is regarded as an important goal and guiding principle of APEC, reflecting the determination to achieve regional economic integration.
2) Korea-ASEAN AI Youth Academy
This program supports exchanges and cooperation in the AI field among young talents from Korea and ASEAN. Launched as part of the "Korea-ASEAN AI Youth Festa" held in Jakarta, Indonesia, in Sep. 2023, it aims to: △ foster digital talent, △ create and connect jobs, △ vitalize the ecosystem, and △ bridge the digital divide. The Korea-ASEAN AI Youth Academy is being pursued on a sustained basis through cooperation with ASEAN countries, and is expected to contribute to nurturing talent in AI and digital fields and developing innovative services in the future.
※ This article was published in the September issue of the monthly magazine Trade. Search for "Monthly Trade" on Naver.