OTR: The NZ-South Korea Relationship

PM Christopher Luxon is currently in South Korea, along with Nicola Grigg, the Minister of State for Trade, and Economic Development Minister Melissa Lee. The Ministers are accompanied by a business delegation.

Located on opposite sides of the globe, New Zealand and South Korea have forged a strong partnership that encompasses political diplomacy, economic collaboration, and cultural exchange. It’s a relationship that was largely grounded in conflict, but has grown significantly over the last few decades.

Diplomatic Relations: A Robust Foundation

The diplomatic relationship between New Zealand and South Korea has evolved significantly since the two countries established formal ties in 1962, but without doubt the most pivotal moment in the bilateral relationship occurred during the Korean War (1950-1953), when New Zealand contributed troops as part of the United Nations Command to assist South Korea in repelling the brutal invasion by North Korean forces.

Sacrifices made during that conflict laid the groundwork for a strong and enduring partnership. The Korean War, and New Zealand’s role in it, can still be a subject of conversation whenever Koreans greet a Kiwi visitor to their country.

The strong bilateral relationship provides a sound foundation for collaboration in regional and international settings such as the East Asia Summit, APEC, the ASEAN Regional Forum, and the UN. In recent years, Korea has extended its foreign policy focus to ASEAN and the Indo-Pacific, including more broadly New Zealand and Australia. 

New Zealand and the Republic of Korea also work together closely on Antarctic issues. Both countries have signed the Protocol on Environmental Protection to the Antarctic Treaty, and are members of the Commission for the Conservation of Marine Living Resources.

South Korea’s research facility in the Ross Sea Region, Jang Bogo Station, is supported from  Christchurch. The Korean Antarctic Programme has some staff co-located in the Antarctica New Zealand building in Christchurch and the Korean Antarctic icebreaker, the RV Araon, often berths at Lyttelton for refuelling and supply

In recent years, high-level government exchanges have also strengthened diplomatic rapport between the nations.

South Korean President Moon Jae-in’s visit to New Zealand in 2019 marked a significant step in enhancing bilateral relations. During this visit, both countries reaffirmed their commitment to deepening cooperation on various fronts, including trade, security, and cultural exchanges. Prime Minister Jacinda Ardern’s visits to South Korea helped to bring more meaning to the diplomatic ties, and this week’s visit by Christopher Luxon continues on that theme.

Trade and Economic Relations

Trade is of course a cornerstone of the New Zealand-South Korea relationship. South Korea is New Zealand’s fourth-largest trading partner in Asia and the seventh-largest globally. In 2023, two-way trade between the two countries reached roughly $NZ4.3 billion, with that figure only likely to increase in the next five years.

New Zealand’s exports to South Korea are diverse, with dairy products, meat, and wool being prominent. In 2023, New Zealand exported $NZ1.8 billion worth of goods to South Korea, highlighting the critical role of agricultural products in the trade relationship. Dairy exports alone accounted for a significant portion, reflecting South Korea’s demand for high-quality dairy, and  the money to pay for it.

South Korea’s exports to New Zealand include electronics, machinery, and vehicles. In 2023, South Korea exported $NZ2.5 billion in goods to New Zealand. Imports featured hi-tech products like cell phones and laptops, as well as heavy machinery and vehicles from manufacturing giants like Hyundai.

The signing of the New Zealand-South Korea Free Trade Agreement in 2015 was another significant milestone in the economic relationship. The agreement aims to reduce trade barriers, enhance market access, and promote investment. According to New Zealand Trade and Enterprise, the NZ-KFTA has led to a 10% increase in bilateral trade.

Educational and Cultural Exchange

South Korea remains a significant source of international students for New Zealand, with around 10,000 South Korean students studying in New Zealand annually.

 As with many countries in Asia, this tertiary education exchange brings significant benefits to both nations, with students returning home with a modern and relevant understanding of New Zealand society, and perhaps more importantly, some lifelong connections  

The popularity of Korean pop culture, including K-pop and Korean cinema, has grown significantly in New Zealand in recent years. Conversely, Maori culture and traditions have garnered interest in South Korea, with cultural exchange programs and exhibitions showcasing Maori taonga and history.

The cultural dimension is part of the wider people-to-people connection, and the South Korean Embassy in New Zealand says there are roughly 7,000 South Korean expatriates currently living in New Zealand.

South Korea is a popular destination for New Zealand tourists, with approximately 25,000 Kiwis visiting South Korea annually. Meanwhile South Korean tourists made over 40,000 visits to Aotearoa in 2023. These visits not only boost the tourism sector but also enhance people-to-people interactions and understanding.

Challenges and Opportunities

Geopolitical tensions in the Asia-Pacific region, particularly relating to North Korea, present issues that impact bilateral relations.  By working together on regional security issues, promoting sustainable development, and enhancing economic cooperation, New Zealand and South Korea are bolstering  their partnership amid common concerns.

Earlier this year New Zealand agreed to enhance its defence contributions to monitoring violations of UN sanctions against North Korea,

These sanctions - adopted unanimously by the UN Security Council- aim to persuade North Korea to denuclearise and abandon its ballistic missile capabilities.

Government has committed to send NZDF ships for the first time, and increase the frequency of deployments of aircraft, to support sanctions monitoring  until September 2026.

Announcing th move, PM Christopher Luxon explained the deployment was to  “Detect and deter actions that directly contravene United Nations Security Council sanctions on North Korea, such as ship-to-ship transfers of illicit material at sea.”

The programme of deployments will begin with the tanker HMNZS Aotearoa conducting replenishment operations in the international waters of North Asia, and the deployment of the RNZAF’s P-8A Poseidon aircraft in early 2025.

Banner image: Haedong Yonggungsa Temple in Busan, South Korea

• Asia Media Centre