The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), in collaboration with the embassy of Republic of Korea in Sri Lanka hosted a seminar titled, “Economic Security in the Indian Ocean Region; Prospects for Collaboration between Sri Lanka and Republic of Korea” on August 21. It was attended by ambassadors and diplomats, representatives of international organisations, senior officials of the Ministry of Foreign Affairs and other relevant ministries and agencies, business persons, leading researchers and university students.

Extracts of an LKI press release: ‘Welcoming the gathering, Executive Director of the LKI, Ambassador Ravinatha Aryasinha, said the main purpose of the seminar was to examine the lessons Sri Lanka could learn from ROK’s experience in science and technological innovation. Setting the context for the event, Ambassador Aryasinha highlighted the current shortcomings in the country’s R&D efforts noting that the country’s annual R&D expenditure stands at a low 0.12% of GDP. He hoped that the discussion would address this lacuna and suggest tangible proposals on how to cultivate a more innovative society that values research and development and specific projects that can be operationalized in this regard.

‘Miyon Lee, Ambassador of Korea in her opening remarks highlighted Korea’s historical and ongoing efforts in transforming its economy globally, with a focus on economic security to protect supply chains and ensure technological leadership. She identified two critical elements for achieving this transformation: ‘Intellectual Property Rights (IPR) protection’ and the development of an ‘innovation ecosystem’. Ambassador Lee also highlighted the relevance of this discussion for contemporary Sri Lanka, which is emerging from an economic crisis and is seeking to adopt export-oriented policies and attract more Foreign Direct Investments (FDI). She outlined three key aspects of Korea’s economic transformation. First, Korea has greatly benefited from the global liberal market system, rule of law, and democratic values. Second, the private sector and civil society play a crucial role in driving innovation and resilience. Third, effective political leadership and bureaucratic efficiency are essential for implementing necessary policies. She also emphasized Korea’s vision for a free, peaceful, and prosperous Indo-Pacific region.

‘Dr. Kyungjin Song, Country Representative of the Asia Foundation Korea Office, led the first session of the seminar. Her presentation focused on the evolution of Korean economic statecraft over the past sixty years and explored potential future collaborations between Sri Lanka and South Korea. She highlighted three key elements of Korea’s economic development: institution building and capacity building, innovation, and entrepreneurship.

‘Dr. Song noted that in 1962, when Korea launched its first five-year economic development plan, its major exports included iron ore, tungsten, anthracite, raw silk, and squid. By 2023, ROK’s primary exports had shifted to semiconductors, automobiles, petrochemicals, synthetic resin, auto parts, and ship building. In her presentation, Dr. Song highlighted a crucial moment in Korea’s economic history. She described how, during the late 1960s and early 1970s, as many Korean students were emigrating to the U.S. for higher education, ROK made a strategic move. The establishment of the Korea Development Institute (KDI) was a key initiative by the Korean government to harness global talent.

‘Dr. Song explained that KDI’s leadership, under the president’s direction, traveled abroad to engage with these scholars, experts, and bright minds, persuading them to return to ROK to contribute to ROK’s economic development. This played a crucial role in Korea’s rapid economic transformation. Dr. Song also shared valuable lessons from the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis, and proposed potential areas for collaboration between Sri Lanka and the Republic of Korea. She suggested opportunities in renewable energy investments and noted that Sri Lanka’s graphite, an essential raw material for South Korea’s semiconductor, battery, and automobile industries, could be a valuable resource for future cooperation.

‘The panel discussion that followed was moderated by Prof. Ajith De Alwis, Chief Innovation Officer of the National Innovation Agency (NIA) and Senior Professor of Chemical and Process Engineering, University of Moratuwa. The four member panel included Dr. Kyungjin Song – Country Representative of the Asia Foundation Korea Office, Prof. (Dr.) Nishantha Sampath Punchihewa – Dean of the Faculty of Law, University of Colombo and former member of the Intellectual Property Advisory Commission, K.A.Vimalenthirarajah – Director General of the Department of Trade and Investment Policies, Ministry of Finance, and Anushka Wijesinha – Co-founder/Director of Centre for a Smart Future.

‘The question and answer session that followed centered on several key points: the need for supportive policies to boost business activity in the country, leveraging areas where Sri Lanka has competitive advantages and core competencies, such as traditional knowledge, that require minimal investment. The discussion also highlighted the importance of the private sector investing in R&D rather than waiting for government action. Encouraging the diaspora community to seasonally or remotely contribute to Sri Lanka’s economic processes was suggested as a way to address brain drain. Additionally, the government’s strategy of diversifying markets from western to eastern regions while maintaining western market connections was examined. The session also emphasized the need for consistent policy focus, strong political leadership to promote innovation, and seeking investments in R&D in moving up the value chain in existing sectors rather than pursuing entirely new ones.’