Did you know that a very special and significant international event is scheduled to take place in Gyeongju, Republic of Korea, in the autumn of 2025? It is the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting. This summit is set to be held primarily at the Hwabaek Convention Center in Gyeongju from October 31 to November 1, 2025.
This will be the first time in 20 years that the APEC Leaders’ Meeting is hosted in South Korea since the 2005 summit in Busan. It is truly meaningful that the leaders of the 21 APEC member economies will gather in Gyeongju, the thousand-year-old capital of the Silla Kingdom, to discuss the future of the Asia-Pacific region. More than just a local event, this is a golden opportunity to elevate South Korea’s international standing and foster economic and cultural leaps forward.
Let’s dive into what APEC is, how it started, what its role is, and why we should pay close attention to the 2025 Gyeongju Summit!
1. What is APEC?
APEC is an acronym for Asia-Pacific Economic Cooperation. As the name suggests, it is a regional intergovernmental forum whose members—countries and territories bordering the Pacific Ocean—cooperate to achieve sustainable economic growth and common prosperity in the Asia-Pacific region.
The key characteristics of APEC include:
- The World’s Largest Regional Cooperation Forum: APEC’s 21 member economies collectively account for approximately 37% of the world’s population, about 61% of global GDP, and roughly 49% of world trade, making it a massive economic bloc.
- Non-binding Agreements: Unlike blocs such as the European Union (EU) that adopt legally binding treaties, APEC operates on the principle of voluntary commitments and implementation by its members.
- Participation as ‘Economies’: Members like Chinese Taipei and Hong Kong, China, participate under the designation ‘economy’ instead of ‘country’ in this international forum. This unique APEC approach is designed to accommodate a diverse range of members with varying political systems and levels of economic development.
APEC’s ultimate long-term goal is to liberalize trade and investment to eventually create a single community across the Asia-Pacific region.
| [Reference: MOFA Korea – Overview of APEC] https://www.mofa.go.kr/www/wpge/m_3901/contents.do?hl=ko-KR |
2. How Did APEC Begin?
APEC was born in the late 1980s as a response to the global trend of economic regionalization and a growing need to strengthen economic cooperation within the Asia-Pacific.
- Background: The formation of regional economic blocs, such as the EU in Europe and NAFTA in North America, led to a consensus among Asia-Pacific nations that they needed to join forces to have a collective voice and promote regional economic growth. The rapid economic rise of the Asian region at that time was a major driving force.
- Launch (1989): APEC was officially launched in November 1989 in Canberra, Australia, as a Ministerial Meeting of 12 economies, including South Korea, the United States, Japan, Canada, Australia, New Zealand, and the six original ASEAN members (ASEAN 6). South Korea played an important role as a founding member.
- Elevation to Leaders’ Meeting (1993): At the suggestion of then-President Bill Clinton, APEC was elevated to a ‘Leaders’ Meeting’ in Seattle, USA, in 1993. This established APEC as a cooperative body with a stronger influence in the international community, where top leaders from each member economy convene annually to make key decisions.
3. Evolution of APEC Membership
APEC has expanded its membership since its inception and currently comprises 21 member economies.
| Year | Economies Added | Total Members |
| 1989 | Australia, Brunei Darussalam, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States | 12 |
| 1991 | Chinese Taipei, Hong Kong, China, People’s Republic of China | 15 |
| 1993 | Mexico, Papua New Guinea | 17 |
| 1994 | Chile | 18 |
| 1998 | Peru, Russia, Vietnam | 21 |
Note: Following the 1997 Asian Financial Crisis, APEC implemented a moratorium on accepting new members until 2007 to consolidate its cooperation efforts. Currently, there are 21 active member economies.
4. APEC’s Mandate and Role
The APEC Leaders’ Meeting is more than just a gathering; it plays a critical role in setting the economic policy direction for the Asia-Pacific region and influencing the global economy.
1) Setting Major Goals and Visions
- The Bogor Goals (1994): These goals aimed to achieve free and open trade and investment in the region by 2010 for industrialized economies and by 2020 for developing economies.
- The Putrajaya Vision 2040 (2020): Following the conclusion of the Bogor Goals, this new vision for the next 20 years identifies three main drivers for future cooperation: Trade and Investment, Innovation and Digital Economy, and Strong, Balanced, Inclusive, and Sustainable Growth.
2) Impact on the Global Economy
- Shaping the Trade Environment: APEC stimulates regional trade by lowering trade barriers and improving the investment environment. The ‘open regionalism’ principle discussed in APEC extends benefits to non-member economies, positively influencing the global trade order.
- Cooperation Across Diverse Sectors: Beyond trade, APEC fosters cooperation across broad areas such as digital technology, food security, climate change, energy security, and human resources development through working groups and ministerial meetings, jointly addressing global challenges. For instance, the $\text{2025}$ Gyeongju APEC meeting is setting up a new Senior Officials’ Dialogue on the Culture Industry for the first time to discuss economic growth through cultural exchange, continuously expanding the scope of cooperation.
5. What to Expect from the 2025 APEC Summit
The 2025 APEC Leaders’ Meeting in Gyeongju will be held under the theme: “Building a Sustainable Tomorrow: Connect, Innovate, Prosper.” At a time when the world faces complex crises, the key issues expected to be addressed at the meeting are:
1) Projected Core Agenda
- Digital Transformation and AI Innovation: Discussions will focus on cooperation models and strategies for economic growth utilizing Artificial Intelligence (AI) and digital technology. This is an opportunity for South Korea to share its strengths in IT and digital capabilities with the international community and demonstrate leadership.
- Supply Chain Resilience and Trade Order Reconfiguration: Discussions will center on stabilizing the volatile global supply chain, which is strained by issues like the US-China conflict and geopolitical risks, and finding cooperative measures suitable for the new trade environment. In-depth talks on strategic industries, including key materials, semiconductors, and batteries, are likely.
- Sustainable Growth and Climate Change Response: Common global challenges, such as climate change and energy transition, will be major agenda items, with a focus on seeking collective APEC responses and policies for inclusive and sustainable economic growth.
2) Potential Outcomes (Positive/Negative Outlook)
- Positive Outlook: The summit provides a platform for ‘Track 1.5 Diplomacy’ where leaders of the 21 member economies can hold candid, non-binding discussions. Bilateral meetings among major powers (e.g., South Korea-US, South Korea-China, US-China) could help resolve complex international issues and positively contribute to regional tension reduction. South Korea can demonstrate leadership on global issues as the host economy.
- Negative Outlook: Due to the wide variety of economic interests and political systems among member economies, reaching concrete and substantial agreements can be challenging. In particular, escalating tensions among key nations could hinder the achievement of a shared vision.
6. What Impact Will Hosting APEC Have on South Korea?
The APEC Leaders’ Meeting, returning to South Korea after 20 years, will have a multi-faceted and highly significant impact on the nation.
1) International Image and Diplomatic Influence
- Enhanced National Stature and Leadership: By successfully hosting the 21 leaders and chairing the meeting, South Korea can showcase its elevated national stature and diplomatic competence to the world.
- Broadened Diplomatic Horizon: Various bilateral meetings held during the summit period will broaden South Korea’s diplomatic outreach, creating a favorable environment for securing international cooperation on issues concerning the Korean Peninsula.
2) Economic Effects
- Stimulation of Trade and Investment: A large influx of foreign business leaders attending events like the CEO Summit can generate new investment and business opportunities with domestic companies.
- Regional Economic Boost: The host city, Gyeongju, and related regions (e.g., Busan, Jeju) will benefit from significant infrastructure improvements and investment attraction. The short-term economic effects from spending on accommodation, tourism, and consumption during the meeting period are also expected to be substantial.
- Brand Promotion Opportunity: This is an excellent opportunity to showcase South Korea’s high-quality products, technology, and brands to a global audience of consumers and buyers.
3) Cultural Impact
- Reinforcement of ‘Cultural Power’ Image: The summit provides a prime opportunity to promote South Korea’s appeal by presenting not only the cultural wave of K-pop and K-dramas but also Gyeongju’s thousand-year-old Silla heritage to world leaders and the media. This will contribute to attracting foreign tourists and revitalizing cultural exchanges.
The 2025 Gyeongju APEC Leaders’ Meeting will be a vital occasion to reaffirm South Korea’s role as a key partner in shaping the future of the Asia-Pacific region and sharing our culture with the world. We encourage you to pay close attention to the vision and outcomes that South Korea will present during this summit!
| [Reference: Official Website of the 2025 APEC Gyeongju Summit] https://apec2025.kr |
