"We must ensure the United States does not focus only on Korea's fiscal contributions. Korea should leverage its technological strength and rapid execution to increase its bargaining power."
Darcie Draudt-Véjares, a Korea research fellow at the Carnegie Endowment for International Peace, emphasized this in a recent written interview with ChosunBiz. Draudt-Véjares said, "Korea should not attempt negotiations for massive fiscal support like Japan, and should continually present new forms of cooperation that differentiate it from other countries."
Research fellow Draudt-Véjares is a leading Koreaophile who studied politics and diplomacy on the Korean Peninsula in Seoul from 2008 to 2013. She is regarded as a Korea expert drawing attention in U.S. diplomatic circles.
The United States and Korea reached a tariff negotiation agreement on July 30, but they are at odds over the structure of a $350 billion investment funds vehicle. U.S. President Donald Trump claimed, "We will receive $350 billion up front from Korea," pressing for a cash investment approach.
Research fellow Draudt-Véjares said it is important for Korea to keep emphasizing industrial cooperation. Draudt-Véjares said, "Korea should not be trapped in a simple discussion of investment funds and should redirect U.S. attention to industrial cooperation, such as joint development projects in semiconductors, batteries, and shipbuilding."
She also said, "Korea's strength lies not in individual projects but in its integrative capability to bind different fields—such as semiconductors, batteries, AI, and telecommunications—into a single industrial ecosystem," adding, "In the U.S., completing an individual project takes five to seven years, but in Korea, government, industry, and technology can move in tandem to implement an integrated solution in one to two years."
She also recommended forming a "Korea-U.S. technology partnership council" that includes chief executive officers (CEOs) from both countries, going beyond government-level diplomacy. The idea is to emphasize direct communication between the two countries' industries to break away from a transaction-centered relationship.
Research fellow Draudt-Véjares warned in particular that "the Japan-style negotiation model is disadvantageous to Korea." Japan pledged $550 billion to the United States, but the United States took the lead in selecting investment destinations and ended up taking most of the profits.
Draudt-Véjares said, "Korea's economy is structurally different from Japan's," adding, "Its economy is smaller and far more exposed to direct competition with China." Therefore, she said, Korea should clearly explain these differences to the United States and craft a tailored strategy that leverages its own industrial and technological strengths.
Research fellow Draudt-Véjares said, "Korea has irreplaceable technological capabilities and a strategically pivotal location, and it is already providing investments that enhance U.S. industrial competitiveness," adding, "All of these elements are what the United States currently needs from its allies."
She also said, "The Korean and U.S. governments have linked their alliance over the past 10 years on two axes—defense and the economy," adding, "It would be natural to conduct discussions that combine the two domains."
However, she noted that Korea must also demonstrate its presence as a security partner. Research fellow Draudt-Véjares said, "Many U.S. experts value the strategic partnership with Korea, but within parts of the Trump administration there is a view that sees security only in terms of cost-effectiveness," adding, "Korea should become a 'partner of choice,' not an ally dependent on the United States, based on its industrial technological strength and military capabilities."
To prepare for U.S. pressure on defense cost-sharing, she advised, "Proactively propose early investment in next-generation defense systems and an expansion of defense R&D." She believes this would not only strengthen Korea's military power but also increase its leverage in Korea-U.S. negotiations.
On diplomatic strategy, she said, "While maintaining the Korea-U.S. alliance, Korea should pursue selective cooperation with China on economic and regional security issues," adding, "The key is for Korea to secure its own diplomatic, economic, and security capabilities."
She added, "Korea should use multilateral cooperation frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to widen its diplomatic options, and expand middle-power diplomacy with Southeast Asia, Europe, and Latin America based on its industrial, technological, and cultural strengths."
Regarding concerns about opening the agricultural and fisheries markets, she said, "In a multilateral trading system, market opening is not simply a question of 'open or not,' but a matter of timing, implementation, and domestic adaptation," adding, "Market adjustments are an unavoidable negotiation element and must comply with scientific evidence and internationally recognized standards."