S. Korean business community indicates it's joining US-led anti-Huawei front

Korea-US Business Council issues collective statement denouncing "untrustworthy" tech in 5G networks

Federation of Korean Industries Chairman Huh Chang-soo (seventh left, front row) and attendees of the plenary session of the Korea-US Business Council in Seoul on Nov. 17

With allies such as the UK, Australia, and Japan joining the US in its push for sanctions against the Chinese company Huawei amid a battle for 5G dominance, the South Korean business community issued a collective statement declaring that there is “no place for untrustworthy, high-risk vendors in any part of our 5G networks.”

The message, which was included in a joint declaration adopted at a Korea-US Business Council meeting, is being seen as the first official announcement by the South Korean business community that it may be taking collective part in the “anti-Huawei front.”

On Nov. 18, the Federation of Korean Industries (FKI) announced that a joint declaration had been adopted with the US at the 32nd joint plenary session of the Korea-US Business Council, which was held jointly via teleconference with the US Chamber of Commerce at the FKI Tower in Seoul’s Yeouido neighborhood on Nov. 17-18. Included in the six-item joint statement is a section on “promot[ing] responsible global development and deployment of 5G.”

In this item, the two sides’ business community representatives stated, “We share the view that there is no place for untrustworthy, high-risk vendors in any part of 5G networks. Further, we believe that the US and Korean governments, along with their allies and partners, must foster trust and improve security through continued engagement with the private sector on risk identification and mitigation efforts, as well as the promotion of continued development of trusted 5G technologies, services, and products.”

While it was not stated outright, the reference “untrustworthy, high-risk vendors” was understood to be to the Chinese IT company Huawei. In the past, the US, the UK, and Australia have typically referred to Huawei as an “untrustworthy, high-risk vendor” while excluding its equipment from their national 5G network projects on national security grounds. An FKI official said, “The wording in the declaration was included in a general sense of emphasizing the importance and security of 5G technology, and was not a reference to any particular company, nor was there any mention at all of specific companies at this Business Council meeting.”

The topic of the Business Council meeting was “Fostering US-Korea Commercial Relations and Promoting Economic Growth and Innovation.” In addition to FKI Chairman Huh Chang-soo, Hanjin Group Chairman Cho Won-tae, and American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim, its participants included executives representing Samsung, Hyundai Motor, SK, Lotte, Hanwha, and POSCO, as well as others representing such major companies as IBM Korea, Amazon, Microsoft, Cisco Korea, and 3M Korea. Among those invited to participate in the meeting as speakers or panelists were First Vice Minister of Foreign Affairs Choi Jong-kun, US Deputy Secretary of State and Special Representative for North Korea Stephen Biegun, US Acting Undersecretary of Commerce for Industry and Security Cordell Hull, South Korean Ministry of Foreign Affairs Trade and Economic Affairs Ambassador Choi Seok-young, Center for Strategic and International Studies (CSIS) Korea Chair office senior advisor Mark Lippert, South Korean Ministry of Economy and Finance International Economy Management Office (Deputy Minister) Yoon Tae-sik, US Acting Deputy Under Secretary of Commerce for International Trade Diane Farrell, US Ambassador to South Korea Harry Harris, and Democratic Party lawmaker and South Korea-US Parliamentary Diplomacy Forum Chairperson Byun Jae-ill.

By Cho Kye-wan, staff reporter

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