Remarks
AMCHAM General Membership Meeting
April 14, 2017

Thank you, Chairman Kim.
Jeffrey, Chargé Knapper, Former Chairman Ruch(럭),
Distinguished Guests,

Good afternoon.
Time flies! It seems like only yesterday that I made my debut at AMCHAM’s 60th anniversary celebration just four years ago soon after taking office. Today, I feel privileged to join you once again at this prestigious gathering as I wind down my duties.

It is no coincidence that I should address this Chamber. It is not just because trade and investment are integral to diplomacy, but because geopolitics and geoeconomics are more interlinked than ever before. This year’s “Davos Global Risks Report” once again rated geopolitical uncertainty to be among the most impactful risks. So it is important for us to heed the interplay of the two forces to cope with today’s complex reality.

I have often said these are the most trying times since the end of the Cold War. Today’s challenges are complex and multi-layered, with the weakening of the liberal world order, proliferation of regional tensions, fast-growing terrorism and global climate change, to name a few. From my standpoint, the North Korean nuclear and missile threat is the most prominent.

The task before us is to cope with North Korean security threat and pave the way for durable peace and business-friendly geopolitical environment. The compass that will help us navigate these turbulent waters is the ROK-U.S. alliance, much as it has done so for the past six decades.

As I come to the end of my tenure, I believe that now is the right time for me to share my thoughts on the state of ROK-U.S. relations and the joint tasks ahead of us.

First is that the balance sheet of the ROK-U.S. alliance has never been stronger over the past four years.

- We concluded milestone agreements on long-standing issues of vital interest such as the new Peaceful Nuclear Cooperation Agreement, or 123 agreement, the 9th Special Measures Agreement and the OPCON Transition Plan;
- We institutionalized bilateral cooperation by regularizing the Foreign and Defense Ministers’ Meetings (2+2), and establishing four high-level consultation mechanisms, including on the economy, nuclear energy, extended deterrence and North Korea;
- We opened new frontiers of cooperation on issues such as public health, space and cyber;
- In the economic sphere, based on the KORUS FTA, bilateral trade grew a whopping 8% in contrast to minus growth in global trade. The KORUS FTA proved to be a symbol of win-win partnership between our two countries and a platform for further growth;

In a nutshell, to quote from the 2017 US Congressional Research Service Report, the ROK-U.S. relations “reached their most robust state in decades.”

Second, despite the change of leadership in both countries, I believe the ROK-U.S. alliance has made a very good start and is expected to continue to remain rock-solid. President Trump himself told my Acting President that our relations “will be better than ever.” In fact, there have already been 20 high-level consultations over the past four months. The fact that the Trump administration puts high priority on Korea is evidenced by a series of repeated positive developments:

- Korea was among the nine countries President Trump called within 24 hours of taking office;
- It was also the first he called to share the outcomes of the U.S.-China Summit last week;
- Korea was the destination for Defense Secretary Mattis’ first overseas trip in February; and the destination for the first Asia tour by Secretary of State Tillerson in March and Vice President Pence which will take place the day after tomorrow.

On the economic front, high-level economic consultations have been underway, and I see a continued positive role of the KORUS FTA in developing a mutually-beneficial and future-oriented economic partnership between our two countries.

In particular, we have great potential for further cooperation in energy and manufacturing, which are of great interest to the Trump administration. We are already seeing concrete results:
- In energy, starting from this year, Korea will be importing LNG from the United States, which will reach 5 million tons annually starting from 2019;
- More investment to the United States by Korean companies like Samsung, Hyundai, and LG are in the pipeline, which will create more jobs for Americans.

My third message pertains to what may be your biggest concern: that is, how to deal with the North Korean nuclear and missile conundrum at this critical juncture. The issue has been simmering for over two decades. What makes it prominent now more than ever before is that it has “reached a new level of seriousness,” or a “moment of truth,” a view shared by President Trump and President Xi at the latest U.S.-China Summit. We are racing against time.

Unfortunately, 2016 was the record-breaking year for North Korea’s strategic provocations. It conducted two nuclear tests and 24 ballistic missile launches of all sorts - unmatched in the entire history of the UN. In response, we have built the framework of the “entire international community versus North Korea“, buttressed by the toughest-ever UN Security Council resolutions, unilateral sanctions and diplomatic pressure on North Korea.

Now is the time to further solidify the strongest-ever international unity and solidarity against North Korea. Without wavering, our aim is to achieve the complete, verifiable, and irreversible denuclearization of North Korea and to fundamentally change its strategic calculus.

The key in this endeavor is the close consultation between Korea and the United States at every step. There is no space, no daylight between our two countries on North Korea. Indeed, an air-tight ROK-U.S. teamwork will continue to be vital in solving this conundrum.

Last but not least, I cannot overemphasize the importance of synergy between diplomatic pressure and military deterrence. The core function of this year’s large-scale ROK-U.S. combined military exercises and the recent dispatch of U.S. strategic assets including USS Carl Vinson, is to strengthen deterrence. President Trump himself made clear that the ships are meant to “deter North Korea from taking further actions.” I am sure Vice President Pence, who will be speaking to you in a few days, will reaffirm our strong resolve to maintain peace on the Korean Peninsula.

One specific measure to translate our resolve into action is the joint decision of the alliance to deploy the THAAD system to U.S. Forces Korea as part of our strengthened military readiness and defense against North Korea’s fast-growing threats. The deployment will proceed seamlessly as scheduled.

What we, Korea and United States, are doing together now have implications on our security, safety, your business, regional peace and prosperity. This is why Korea and the United States maintain well-established principles and practices of close consultations on any measures or actions on North Korea. If you talk to any high-level U.S. officials, you will get the same answer. I met my colleague, US Secretary Tillerson, four times over the last two months, and I am going to meet him again later this month in New York at the UN Security Council Special Session on North Korea.

Distinguished guests,

Andy Grove, the former CEO of Intel, said: “Bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them.” Korea is a living proof, having a track record of coming out of multiple storms even stronger. The Korean government will continue all-out efforts to turn these challenges into opportunities.

AMCHAM has played the role of an “All Star Cheerleader” between our two countries for the past 64 years. Your “Doorknock” campaign was pivotal to the enactment of the KORUS FTA. Let us be partners in charting new territories as entrepreneurs in both business and diplomacy. I ask for your continued strong support. And feel free to invest more in Korea! Thank you.