ASEAN-Korea Digital Partnership in the Post-COVID-19 Era

When the World Health Organization (WHO) finally declared on the 11th of March this year that
the Coronavirus Disease 2019 or more commonly known as COVID-19 has reached the
pandemic status after recording hundreds of thousands of cases in many different parts of the
globe, it caught the global community almost off-guard and seemingly made the world stop
turning for a while. In an effort to save lives, many countries, from the most developed ones such
as the United States, Italy, South Korea, Russia to the developing ones such as Viet Nam,
Philippines, and other several countries in the continents of Africa and South America have
initiated some measure of massive quarantines only to find their economies compromised. With
restricted movement, businesses started to close down and continues to do so at an alarming rate
as the entire world continues to grapple with the deadly virus. In April alone, UN estimated that
around 1.6 billion people are on the brink of losing their jobs—around half of the total global
working population estimated at 3.3 billion. 1 Most of them engaged in the informal economy.
The Pandemic and the global response to fight it has resulted into a shrinking of the world
economy as a whole. The havoc it caused to the traditional economy – both in trade and finance,
was so great that the WorldBank stated that the world is about to enter into a state of recession
that was last experienced since the Second World War.2
The ASEAN region too was not spared form the effects of the Pandemic for millions of its
citizens have also lost their jobs. In the Philippines, who continues to impose one of the longest
lockdowns in the world, the unemployment rate has spiked to an all-time high of 17.7% or 7.3
million people last April but fortunately has since eased down to 10%.3 In addition, the country
has also recorded a negative 16.5% growth rate in its second quarter as a result of the ongoing
pandemic. The same effects were being felt within the whole region. In Cambodia, it is
anticipated that their economy will shrink between 1 to 3%, with 1.76 million people facing the
probability of losing their jobs, mostly because these are engaged in people-based industry. In
Laos, which relies chiefly on the tourism industry, was also hit hard. The pandemic further
aggravated its compromised economy, with high debt and low reserves.4
In Myanmar, the economic growth is projected to drop from 6.8% back in 2018-2019 to a measly
0.5% for 2020, and threatening to reverse the country’s years-long thrust in poverty reduction as
its poor is pushed deeper into poverty as the country sees further reduction in the incomes of
households. 5 In Viet Nam, the pandemic brought Hanoi’s three-decade economic growth streak
into a screeching halt.6

1
https://www.theguardian.com/world/2020/apr/29/half-of-worlds-workers-at-immediate-risk-of-losing-
livelihood-due-to-coronavirus
2
https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-to-plunge-global-economy-into-worst-
recession-since-world-war-ii
3
https://www.rappler.com/business/unemployment-rate-philippines-july-2020
4
https://www.worldbank.org/en/country/lao/publication/covid-19-to-impact-lao-pdr-growth-debt-in-2020-new-
world-bank-report
5
https://www.worldbank.org/en/news/press-release/2020/06/25/myanmars-economy-severely-impacted-by-
covid-19-report
The ongoing Pandemic has forced millions of people to suddenly adopt a new lifestyle--- a
lifestyle that steers away from the “traditional economy” and instead relies on digital
transactions. Since many people are within the confines of their homes and that the possibility of
contracting COVID-19 Virus through contact with coins and paper bills exists, a lot of people
have resorted to online transactions in lieu of the hard cash set-up where social and physical
distancing may not be implemented and thus heightening the risk of viral spread through person-
to-person contamination. For a myriad of daily human activities, from paying their bills to
ordering food and needed supplies even banking, many have turned to digital transactions. With
all these developments happening in a span of just a few months, it highlighted the untapped
possibilities of digital economy which even before the Pandemic began, is still sidelined by most
people who were accustomed to the traditional economy.
For many countries who have already adopted to the digital economy way before the start of the
current pandemic, the transition was not that difficult. Neighboring countries such as Japan who
has an Internet of Things Industry (IoT) valued at 11.1 trillion yen in 2013 and estimated to
jump to 21.1 trillion yen in 20187 and South Korea whom for years have engaged in the digital
economy with their incredible internet speed, have already established systems and needed
support frameworks that promptly enabled them to cushion the impact and waves of sudden
changes brought by COVID-19 particularly in transcending the digital space. Unfortunately for
the rest of the world, that was not the case. In ASEAN region alone, many are not prepared for
digital transformation. In a survey conducted by Cisco, it was found out that businesses/
companies are hampered towards digital transformation by three major problems: first, there are
insufficient fund to build digital infrastructure, lack of talent in developing solutions to go digital
and that the IT infrastructure/s currently in place in their respective countries are not quite
reliable to support the speedy transformation of technologies which are evolving at lightning
speeds. 8
Turning northward within the Asian continent, the Republic of Korea or South Korea as many
came to know it, is the perfect example of how could a country transform itself from primarily a
traditional to a highly-sophisticated, digitalized economy. Out of the many things South Koreans
have contributed to the rest of the World, they are known for their strong internet connectivity.
This ubiquitous connectivity is very prevalent from the macro down to their microeconomy; you
can pay digitally in almost every store and every transportation. World-renowned tech brands
such as Samsung and LG trace their origins in South Korea. With a strong economy and
developed infrastructure, it allowed South Korea to compete with other developed countries in
pursuit of higher technologies such as 5G internet and rise as one of the global leaders in the
field of Information and Communications Technology or commonly known as ICT.9
South Korea has achieved remarkable things in a span of half a century following the conclusion
of the Second World War and the bloody Korean War that divided the Korean peninsula apart.
6
https://www.japantimes.co.jp/news/2020/08/26/business/economy-business/coronavirus-economic-boom-
vietnam/
7
https://www.eu-japan.eu/sites/default/files/publications/docs/digitaleconomy_final.pdf
8
https://techwireasia.com/2018/10/is-the-asean-finally-ready-for-digital-transformation/
9
https://news.itu.int/republic-korea-leader-information-communication-technologies/
From an agriculture-based, poverty-stricken country, they have transformed themselves into an
export-oriented economy that brought them into an unprecedented era of growth and prosperity
never seen before in the Korean Peninsula. 10 In 2016, they were the 11th largest economy and
became one of the top 10 exporters in the world. 11 From struggling behind her neighbors in the
20th Century, Seoul has managed to rise and ascend to economic prosperity just in time for the
start of Fourth Industrial Revolution of the 21st Century.
The world is about to or has probably entered the Fourth Industrial Revolution or known as
“Industry 4.0”. This particular industrial revolution could be described by the combination of
digital and physical worlds, eliminating their respective boundaries and putting greater emphasis
on growing adoption to new technologies such as cloud computing, advanced wireless
technologies and artificial intelligence, among others. Under this Industrial Revolution, personal
skills are deemed the most essential factor.12
The Fourth industrial Revolution clearly emphasizes the need for global digitalization. If a
country wishes to improve its economic standing and have a better shot in achieving economic
prosperity, there is a need for digital transformation. However, many countries are having
difficulty in keeping up with the massive surge of changes sweeping the entire planet at a rapid
pace. With such developments, it raises both opportunities and challenges for a country or a
regional bloc to overcome.
In keeping up with the Fourth industrial Revolution, there is a need for a fast and stable internet
connectivity—a privilege not enjoyed by many developing countries. Take for example in the
ASEAN Region located in the Southeastern part of the Asian continent consisting of different
countries divided between Mainland and Maritime Southeast Asia. Each of the sovereign states
are on different stages of economic achievements but all are on the verge of favorable take-off.
With varying progress and capability, it will be difficult to bring them all in achieving complete
digital transformation all at the same time. While Singapore and Thailand enjoy fast internet
speeds, other developing ASEAN states such as Philippines and Indonesia are on the opposite
with Manila averaging 20 MBPS in fixed broadband and 15 MBPS on mobile data in contrast
with 199 MBPS and 53.6 MBPS respectively by Singapore as recorded by Ookla Speedtest
Global Index last March 2019.13
In the late 1970s, The West started to establish relationship with the communist People’s
Republic of China and the Sino-American tensions began to subside. Since then, Beijing has
gained the moniker “World’s Factory” because many of the world’s major companies had
established their factories there because of favorable conditions present such as low cost of labor,
since China possesses the world’s largest population; low taxes and duties; strong business
ecosystem and; generally permissive regulatory practices. 14 However, when COVID-19
unleashed its destructive and disruptive characteristics, China was not able to match the surge of

10
https://www.brookings.edu/articles/koreas-path-from-poverty-to-philanthropy/
11
https://www.stlouisfed.org/on-the-economy/2018/march/how-south-korea-economy-develop-quickly
12
https://www.salesforce.com/blog/2018/12/what-is-the-fourth-industrial-revolution-4IR.html
13
https://theaseanpost.com/article/are-aseans-internet-speeds-world-class
14
https://www.investopedia.com/articles/investing/102214/why-china-worlds-factory.asp
global demand for medical supplies, equipment and other essentials during the opening months
of the pandemic which contributed to delay in the global response against the deadly virus. The
shortage, coupled with Beijing’s crippling Trade War against United States and its aggression in
the highly-contested waters of South China Sea, further highlighted the danger of concentrating
the majority of manufacturing in one place. Because of this, many companies are on the verge or
in the process of moving their manufacturing operations away from Beijing and relocating it
elsewhere to avoid supply shocks in their global supply chain in the future. 15 Japan has already
started doing so by subsidizing its companies to move their manufacturing hubs from China to
ASEAN Region. 16 South Korea, meanwhile is also keen on forging partnerships with the
ASEAN in order to diversify their markets and to get away from their economic overdependence
between Beijing and Washington which has greatly suffered as the two major powers continue to
assert their dominion.
But why choose ASEAN?
The ASEAN region is a lucrative market for foreign investors. Although not as populous as
China, with around 622 million people against Beijing’s 1.39 billion, it is still a populous place.
With a strong and growing regional economy, it is estimated that thirty years from now, they will
be the 4th World’s Largest Economy by 2050. It is also important to note that the ASEAN states,
in particular those who are within the Mainland Southeast Asia, which are Viet Nam and
Thailand, are suitable for manufacturing since they are in close proximity with the Chinese
mainland and factoring the expenses to be incurred in logistics and transfer of manufacturing
hubs, it would be cheaper to move there than relocating it elsewhere. In addition, ASEAN is the
third largest labor force, following China and India so labor would be relatively cheap and
comparable to that of the Chinese. It is also important to note that the ASEAN Regional Bloc
provides an attractive trade and tax incentives. ASEAN also has free trade agreements with
developed countries such as China, Japan, South Korea, New Zealand and Australia. Following
the effects of the ongoing Trade War between Beijing and Washington, many ASEAN States
have their own individual policies designed to be very attractive foreign investors. To top it all,
ASEAN too got a large number of middle-class, from the current 134 million to around 334
million by 2030. 17
Cognizant with the potential advantages being offered by the Regional bloc, South Korea is
actively engaging with ASEAN in forging a good deal that will benefit both parties socially,
culturally and more importantly, economically particularly in light with the current pandemic
and the global trend towards the Fourth industrial Revolution. Under the leadership of South
Korean President Moon Jae-In, Seoul has pursued an active engagement with the ASEAN
Region under the former’s new foreign policy: The New Southern Policy or NSP. Under NSP,
Seoul seeks not only new markets for their products but also to empower the growing ASEAN
region which, if properly steered in the righty direction, could make it as the next export and
manufacturing hub next to China. If pursued correctly, Seoul’s NSP could prove to be a major
boost to ASEAN countries particularly in the Mekong region.
15
https://fcpablog.com/2020/04/16/at-large-new-compliance-era-as-made-in-china-becomes-made-elsewhere/
16
https://www.aseantoday.com/2020/07/how-asean-benefits-as-japan-shifts-production-away-from-china/
17
https://www.china-briefing.com/news/alternatives-china-manufacturing-capacity-op-ed/
The South Korea-ASEAN partnership over the years have yielded fruitful results. In 2016, the
two signed the Plan of Action between ASEAN and South Korea to implement the joint
declaration on strategic partnership for peace and prosperity which covers wide aspect of
cooperation areas between the two.18 In 2017, the NSP was rolled out and saw Seoul’s
commitment in engaging the regional bloc to be one of the leading economic players within the
region. As a result, South Korean firms have started establishing their presence through
investments within the ASEAN region particularly in the fields of processing and manufacturing,
logistics, and shipbuilding industries where South Korea has a distinct advantage. South Korea
has also assisted ASEAN member states in boosting their growth through cooperation and
partnerships in the digital sphere such as e-commerce, e-learning and in other fields of IT. In the
field of Fourth Industrial Revolution, the NSP will further propel the growth of both Seoul and
ASEAN by strengthening and expanding bilateral cooperation in areas of information,
communications, finance and digital sphere.19
However, much of the thrust of the economic arm of the NSP is only within the Mekong region,
or within the mainland Southeast Asia, leaving little for its Maritime counterparts such as the
Philippines and Indonesia despite its big potential. Nevertheless, South Korea could still continue
to engage ASEAN States within the maritime Southeast Asia through a variety of ways that
could bring about positive progress for these countries, the whole of ASEAN and South Korea in
general.
Perhaps the most expected thing to come out post-pandemic is that businesses and trade, in
general, will now shift into digital and online transactions. Cashless will be the major trend.
South Korea, with its high level of technology and strong information and communications
technology coupled with their fast and reliable internet speeds, was able to grow and reach
economic prosperity in a relatively short amount of time. Meanwhile for ASEAN states such as
Philippines, Laos and Myanmar, the same privileges are not available. Therefore, the first area of
cooperation between South Korea and ASEAN post-pandemic could be in the field of reliable
internet connectivity. For example, the Philippines-- an archipelagic state that has more than
7,000 islands but unfortunately, not all of them enjoys good internet speed. This perennial
problem was further highlighted when, as a result of the ongoing, the Philippine Government
decided to adopt online learning, beside modular learning in lieu of face-to-face classes despite
having one of the slowest and unreliable internet speed and connectivity in the ASEAN region.
Thousands of students continue to suffer and teachers are struggling to obtain decent internet
connections. This problem could be included in areas where Seoul and ASEAN could discuss
post-COVID-19 in the form of government-to-government cooperation and communication,
perhaps with Seoul sharing their policies and strategies in achieving high internet speed such as
the utilization of VDSL which is part of wider scope of broadband connectivity. 20 In addition,
Seoul could provide assistance and advice to all ASEAN states in areas such as improvements on
the ecosystem of data, network and A.I. to help governments in their transformation to e-
governments.
18
https://asean.org/storage/2012/05/ASEAN-ROK-POA-2016-2020-FINAL.pdf
19
https://thediplomat.com/2020/07/south-koreas-new-southern-policy-and-asean-rok-relations/
20
http://edition.cnn.com/2010/TECH/03/31/broadband.south.korea/index.html
The second area where Seoul and ASEAN could discuss could be in assisting the rest of ASEAN
in faster transition to digital economy, particularly with e-commerce. The focus should be in
ASEAN member-states that are still in the process of achieving development at par with leading
ASEAN countries such as Singapore, Thailand, Brunei and Malaysia. One good example could
be the Philippines, which 99% of its economy is comprised primarily by MSMEs. 21 The country
is trying to embrace digital commerce as a way to engage more and to keep up with the global
markets. The pandemic severely hit the MSMEs which forced thousands to close and resulted to
job loss for hundreds of thousands of Filipinos. South Korea could extend a helping hand by
sharing to the Philippine government some feasible insights about Seoul’s plan for post-COVID-
19 recovery under the Digital New Deal.22 Under the DND, aid could be given to these
enterprises particularly by supporting them with access to e-commerce channels and other key
facilities to ensure their continued operations and further boosting their competitiveness. The
Philippines could adopt it instead of providing them with loans and give the people, through its
various agencies, cash assistances to weather the storm which is unsustainable in the long run.
With this system, the hope pinned in the quick reopening of businesses as many as possible
within the soonest possible time will be much more tangible.
The third area of cooperation which could be eyed upon is the education sector. The once in a
century pandemic brough forth circumstances that forced nations to adopt online learning in lieu
of the traditional face-to-face arrangement. Once again, Philippines is thrown into spotlight, as it
struggled to push through its education in the online learning mode because of unreliable internet
around the country. Under the South Korea-ASEAN partnership, there could be discussions as
how to effectively tap the power of internet in promoting online education effectively through a
viable establishment of digital education infrastructure for elementary, secondary and even
tertiary level to facilitate smooth online/offline integrated learning environment as well as
improving the quality of online courses and the push for lifelong learning.
Fourth would be in the sphere of cybersecurity. Terrorism, which the ASEAN region has seen its
share of the atrocities brought by it, has evolved from the physical to digital ones and the
regional bloc is lagging behind in ensuring its cybersecurity in the face of attacks. In 2017,
personal information of some 46 million mobile subscribers in Malaysia was compromised and
alarmingly, the attack occurred as early as 2014 but was discovered years after. 23 This further
emphasizes the importance of cybersecurity because it serves as a shield in protecting sensitive
data, from private, public and even from the State as the world relies ever deeply in technology
that continues to connect the world at a very rapid pace.24
Lastly, since this paper mentioned the plausible transfer of manufacturing industry to ASEAN
Bloc from China, there is a need to upskill the labor forces of sovereign states forming this
regional bloc in their digital skills because definitely, the transfer will include manufacturing
facilities requiring high-technology knowledge and mastery. There is a need for re-education and

21
https://asean.org/sharing-access-technology-story-msmes-path-innovation-philippines/
22
https://ciotechasia.com/south-koreas-digital-push-to-help-with-economic-recovery/
23
https://theaseanpost.com/article/strengthening-cybersecurity-asean
24
https://www.upguard.com/blog/cybersecurity-important
creative destruction on the part of our workforces to transform ASEAN into a strong digital
economic bloc.25
Over the years, ASEAN has continuously exerted efforts to prepare itself in striving to achieve a
digitally-enabled economy through partnerships and agreements with highly-technological
countries, and through its visions and masterplans such as the ASEAN Economic Community
2025 Vision and ASEAN ICT Masterplan which puts greater emphasis on ASEAN’s
commitment to greater access to technology and innovations to be up-to-date with the global
trends. Having a comprehensive and inter-operable digital economy leading to further regional
integration and economic development. With their experience in the past decades in lifting their
country from poverty to prosperity, South Korea could provide valuable assistance to ASEAN
which currently is on the quest to achieve economic prosperity. In this regard, South Korea and
ASEAN could be the best partners.

25
https://www.thejakartapost.com/news/2017/05/24/shaping-asean-korea-digital-partnership.html