## Policymaker and Negotiator

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**Canonical URL:** [Policymaker and Negotiator](https://www.imf.org/-/media/files/publications/fandd/article/2023/june/trenches-june23.pdf)

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### Background and career
- Born in 1967, began her career in the Ministry of Trade, Industry, and Energy in 1995.
- Korea’s first female trade minister, serving from 2019 to 2021.
- Nearly three decades in government, negotiated the Regional Comprehensive Economic Partnership and bilateral trade pacts with China and the United States.
- Was a candidate for WTO director-general and “made it to the final round for director-general before yielding to Nigeria’s Ngozi Okonjo-Iweala.”
- Graduate of Vanderbilt University Law School and Seoul National University; visiting professor at the Graduate School of International Studies.
- Grew up in Ulsan, an industrial hub home to global trade giants like Hyundai.

### Negotiation approach and domestic consultation
- Emphasizes “sufficient preparation and domestic consultation”:
  - Thorough analysis to “know the substance of the issues.”
  - “Engaging in extensive consultation with domestic stakeholders and relevant agencies” to explore alternatives, identify landing zones, and fine-tune redlines.
  - Domestic consultation enhances the likelihood of “smooth ratification and successful implementation.”
- Example: Korea-US renegotiations required suspending a public hearing due to significant protest by agricultural stakeholders; multiple meetings with protesters enabled resumption of the public hearing and helped “conclude the negotiations and secure ratification from the National Assembly within a year.”

### Experience in Beijing and evolving China policy
- Served as counselor in Beijing from 2007 to 2010.
- Observed China’s active engagement and market-opening during that period (example: China concluded an FTA with New Zealand in 2008).
- Contributed to the conclusion of Korea-China FTA Joint Study and built long-term professional relationships.
- Notes a subsequent shift in China’s policy and changing economic trade landscape.

### COVID-19 impact on trade and supply chains
- Describes a shift toward a “security-oriented approach,” moving from rule-based to emphasis on “resilience, stability, and reliability in supply chains.”
- Despite the pandemic, Korea signed the Regional Comprehensive Economic Partnership among 15 members; the agreement was “substantially concluded before the pandemic” and signed after “one-year negotiations on technical issues to close gaps,” completed virtually.
- Supply disruptions example: Hyundai could not import wiring harnesses from China early in COVID-19 because “95 percent came from China,” forcing suspension of production in Ulsan; later sourced harnesses from Cambodia and started FTA negotiations with Cambodia that year.

### Risk of economic fragmentation and Korea’s response
- Identifies a “worrisome trend” of politicization of economic and trade issues and conflation of trade policy with security amid US–China geopolitical competition.
- Policies contributing to potential fragmentation include:
  - Supply chain reconfiguration, onshoring, reshoring, friend-shoring.
  - Resurgence of industrial policy or massive subsidies.
  - Export controls or investment screening.
- Cites IMF’s World Economic Outlook warning these developments “could increase the cost of doing business, limit companies’ access to global markets, add uncertainty to trade, and result in protectionism and disputes.”
- Korea’s response:
  - Strives to remain an open trade nation while addressing supply chain resilience and economic security.
  - Steps taken include supporting industrial and technological competitiveness in critical sectors and diversification.
  - Actively seeking to strengthen international cooperation through bilateral, plurilateral and multilateral arrangements.
  - Emphasizes that improving supply chain resilience “does not have to mean turning away from economic openness” and can be achieved through collaborative efforts.
- Concludes that the extent of fragmentation is uncertain but that “the challenges ahead will be significant,” and nations must “striving to maintain and promote open trade while striking a right balance between the efficiency, resilience, and security of supply chains.”

*Interview edited for length and clarity.*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2023/june/trenches-june23.pdf_