Former White House chief of staff proposes G9 with Korea, Australia

Former White House chief of staff Ronald Klain is attending 24th World Knowledge Forum hosted by Maeil Business Newspaper in September. [Photo by Han Joo-hyung]

A former White House chief of staff under President Joe Biden has proposed expanding the Group of Seven (G7) to include South Korea and Australia to form a G9.

In an opinion piece published by the U.S. think tank Carnegie Endowment for International Peace on Thursday, Ronald Klain said that Korea and Australia would be “excellent additions” to the current “Eurocentric” G7.

“Given that the group is already Eurocentric, with Japan the only Asian member, and given the challenge posed by China, adding additional nations in that region seems sensible,” Klain said, naming Korea and Australia as two potential candidates for the summit, on the grounds that they are “the two largest economies by GDP that are neither BRICS members nor existing G7 members.”

Despite the G7’s five-decade contribution to the world, Klain said that “the world has changed, and so too should this elite grouping,” suggesting to “strengthen this platform for democratic free-market nations by adding South Korea and Australia and making it a G9.”

The discussion about expanding the G7 to include Korea, which could cause a significant shift in global dynamics, was first proposed during the 24th World Knowledge Forum hosted by Maeil Business Newspaper in September.

During a high-level meeting organized on the sidelines of the forum, attended by former diplomatic senior officials, including Klain, former Korean Minister of Foreign Affairs and Trade Yu Myung-hwan, former Minister of Foreign Affairs Yun Byung-se, and Korea’s Representative to the United Nations Cho Tae-yul, the idea emerged among the panels that Japan cannot be a sole member to represent the entire Asia, leading to discussions about the potential inclusion of Korea and Australia in the G7.

Advocates for including Korea in the G9 argued that as a leading technological powerhouse, Korea should be part of the G9 to signal the revival of the global economy.

However, the details of the statements made during the forum were not disclosed due to the application of the Chatham House Rule.

In his opinion piece for the Carnegie Endowment for International Peace, Klain provided specific reasons for Korea’s inclusion in the G9.

Economic synergy was highlighted as a priority.

Stating that “South Korea’s innovative and growing economy” is a global leader in many regards, including semiconductors, he wrote that “anything that strengthens economic ties between South Korea and the existing G7 nations will create more jobs and more innovation in those nations.”

Geopolitically, there is a sufficient reason to include Korea in the group, according to Klain.

Amid strengthened ties between Russia and North Korea following the Ukraine war, and amid growing U.S. tensions with China, having Korea at the G7 table “seems especially compelling,” he said.

He also stated that the inclusion of Korea will help improve the nation’s relations with Japan and overcome their historical tensions, believing that “giving South Korean officials a seat at the G7 table on the same terms as Japan will help soften any domestic South Korean opposition to closer relations with Japan.”

According to an analysis of data from the International Monetary Fund (IMF) economic outlook by Maeil Business Newspaper on Sunday, Korea’s GDP for this year is estimated to be $1.72 trillion, closely trailing Italy, with $2.17 trillion. Korea’s share in the global economy stands at 1.64 percent, likely to be ranked eighth globally, surpassing Australia this year.

Korea already aligns with the G7 in terms of total investment and trade.

Over the past five years, the average domestic investment (gross fixed capital formation) in Korea was $736.9 billion, higher than that of Canada and Italy, both of which are in the $400-500 billion range. The nation’s total trade volume, which indicates the level of global trade participation, reached $1.17 trillion over five years, exceeding that of Canada and Italy, which stayed between $900 billion and $1 trillion.

The country’s military strength and level of democracy are also comparable.

According to the 2023 World Military Strength Rankings by Global Firepower (GFP), Korea’s military strength is sixth in the world.

According to the evaluations by the U.K.’s Economist Intelligence Unit (EIU), Korea ranks 24th in the world in terms of democracy out of 167 countries.

However, Korea’s poor labor productivity is considered an obstacle to its path towards joining the G7 and other advanced countries.

According to the Organization for Economic Cooperation and Development (OECD), the G7 has an average labor productivity of $74.2 per hour, while South Korea lags significantly behind at $46.5 per hour.

“Amid the evolving global landscape, detailed economic security strategies will be needed, involving enhanced collaboration with nations holding crucial resources,” said Professor Chung In-kyo at Inha University.