Korea Chair Monitor | Vol 2 Issue 1

January 9 – January 22, 2014

The Korea Chair team takes a biweekly look back at events of interest in Washington, Seoul, and the region.

TRADE AND ECONOMICS U.S.-ROK Trans-Pacific Partnership Talks The United States and the Republic of Korea held talks regarding the Trans-Pacific Partnership (TPP) on January 13 in Washington, D.C. The United States was represented by Acting Deputy U.S. Trade Rep- resentative Wendy Cutler, and the ROK by Deputy Trade Minister Choi Kyong-lim. This meeting marks the start of the South Korean process to join the TPP, with Minister Choi going to Mexico, Chile and Peru after his stop in Washington to continue discussions with other TPP partners.

Ninth Round of ROK-China FTA Negotiations The ninth round of the ROK-China free trade agreement (FTA) nego- U.S.‐Korea Security Agenda in Asia in 2014 tiations were held in Xian, China from January 6 to 10, with the The Center for Strategic and Internaonal Studies South Korean delegation led by Deputy Trade Minister Woo Tae-hee. Oﬃce of the Korea Chair hosted the “U.S.‐Korea Secu‐ According to the ROK Ministry of Trade, Industry and Energy, the rity Agenda in Asia in 2014” conference on January 21 two sides began discussions on products subject to market opening, featuring a luncheon address by Sydney A. Seiler, di‐ including highly sensitive products, as well as continuing discus- rector for Korea at the White House Naonal Security Council. Mr. Seiler discussed North Korea’s cycle of sions on the opening of service and investment markets, and protec- provocaon, the North Korean nuclear program, and tion of the environment and intellectual property rights. the strength of the U.S.‐ROK military alliance. Mr. Seiler’s his full speech is online. Photo credit: CSIS. U.S.-ROK RELATIONS U.S. Senate Passes 123 Extension Bill, Ninth Round of U.S. ROK Negotiations Conclude On January 16, the U.S. Senate passed a bill to extend the term of the current U.S.-ROK civil nuclear agreement. The Senate bill contains a slight amendment to the bill that the House of Representatives passed in September 2013 and will need to go through another vote in the House. Separately, the United States and South Korea met in Daejeon, South Korea on January 7-8 for the ninth round of talks on a new civil nuclear agreement between the two countries. Coopera- tion on nuclear energy was discussed, but the negotiations concluded without substantive progress. “U.S.‐Korea Security Agenda in Asia in 2014” South Korea and the United States Conclude Cost-Sharing At the commemorave event “U.S.‐Korea Security Agreement Agenda in Asia in 2014” conference on January 21 CSIS On January 12, the United States and South Korea concluded the lat- brought together three former USFK commanders, General John H. Tilelli, General Walter “Skip” Sharp, est Special Measures Agreement (SMA) establishing the framework and General James D. Thurman to talk about their for cost sharing between the two countries for the 28,500 U.S. troops experiences and contribuons to the U.S.‐ROK alli‐ stationed on the Korean peninsula. South Korea will pay 920 billion ance. The former commanders held a wide ranging won ($867 million) in 2014 and the annual rate of increase for South discussion including the sixeth anniversary of the Korea – calculated through application of the consumer price index armisce, OPCON transfer, and North Korea. The full – will be capped at no more than 4 percent. The new five-year SMA panel discussion is available online. will be signed following approval from the National Assembly and Photo credit: CSIS. will last until 2018. KOREA CHAIR MONITOR | 2

U.S.-ROK RELATIONS (continued) U.S.-ROK Second Round of Talks for OPCON Transfer The United States and the Republic of Korea held a second round of working-level talks on OPCON transfer from January 20 to 21 in Washington, DC. The first round was held from December 12-13, 2013 in Seoul.

Williams Burns in Seoul for Two-Day Visit U.S. deputy secretary of state William Burns arrived on January 20 for a two-day visit to the ROK. He met with ROK first vice foreign minister Kim Kyou-hyun on January 21. After their meeting, a state- ment by the ROK Foreign Ministry said that Burns and Kim “shared a common understanding that uncertainty is increasing in North- President Park Speaks at the World Economic Forum east Asia and agreed to make joint efforts to resolve the issue and President Park Geun‐hye delivered a keynote address at the World Economic Forum in Davos, Switzerland promote peace and cooperation in the region.” Burns is going to Chi- on January 22, in the session “Reshaping the World na and Japan after he leaves the ROK. through Entrepreneurship, Educaon and Employ‐ ment.” She emphasized her “creave economy” vi‐ INTER-KOREAN RELATIONS sion as a soluon to global economic problems at the North Korea to Participate in 2014 Asian Games forum. Her 15‐minute speech was aended by Prime North Korea’s state news agency announced January 20 that its Minister Shinzo Abe of Japan. Photo credit: World male and female soccer teams would participate in the 2014 Asian Economic Forum’s ﬂickr photostream. Games hosted in Incheon, South Korea, from September 19 to Octo- ber 4. South Korea responded that it would allow the North to com- pete; however, North Korea will still need to inform the Olympic Council of Asia officially of its plans prior to the June 20 deadline.

Little Traction on Inter-Korean Family Reunions South and North Korea have struggled over the last two weeks to reach an agreement regarding talks to hold family reunions. South Korea originally intended to align reunions with the Lunar New Year at the end of January. The proposal has stumbled over periph- eral issues including U.S.-ROK annual joint military exercises and ROK and China Defense Dialogue the resumption of stalled tourism to the North’s Kumgang resort. It The 13th ROK‐China working‐level defense meeng was is unlikely the reunions will be held before the end of the month. held on January 21 in South Korea to discuss bilateral consultaons and exchange programs. Plans were made for the ROK Air Force’s aerobac team to parci‐ pate in the Zhuhai Air Show in November. Pictured here is the 53rd Air Demonstraon Group, nicknamed Black Eagles. Photo credit: Doo Ho Kim’s ﬂickr photostream. Looking Ahead Our Friday morning preview of events to watch in the weeks ahead.

 January 30 - February 1| The Republic of Korea celebrates the Lunar New Year for three days, visiting ances tral graves, eating rice cake soup, and enjoying traditional folk games.

 February 16 - 17 | Kim Jong-il’s birthday. This public holiday in North Korea is also known as the Day of the Shining Star.

 February | The United States and South Korea are scheduled to hold joint military exercises in late February. The dates have not yet been announced.

KOREA CHAIR MONITOR CSIS Oﬃce of the Korea Chair contributors: Victor Cha, Senior Adviser and Chair Marie DuMond, Research Associate Andy Lim, Senior Research Intern Eunchong Jeon, Research Intern Hannah Suh, Research Intern Sanford Hesler, Research Intern Wonseok Lee, Research Intern

For more details on our programs and real‐me updates from CSIS, follow the CSIS Oﬃce of the Korea Chair on: Facebook at hp://www.facebook.com/csiskoreachair. Twier at @CSISKoreaChair. Our website at hp://csis.org/program/korea‐chair. iTunesU using your iPad or iPhone at hp://itunes.com/csis.

KoreaChair Monitor is a biweekly publicaon of the CSIS Office of the Korea Chair, available online. CSIS is a private, nonprofit instuon headquartered in Washington, D.C., focusing on internaonal public policy issues. Its research is nonparsan and nonproprietary. CSIS does not take specific pol‐ icy posions; accordingly, all views expressed in this publicaon should be understood to be solely those of the author(s).