Korea's foreign direct investment targets, and ASEAN members have received more than 25 percent of Korea's official development assistance. [FN78] Like China and Japan, Korea has therefore demonstrated its willingness to expend financial resources in order to encourage cordial ties to what is the most plausible vehicle for regional integration.

Given the substantial history of Korea's involvement with Southeast Asian countries, ASEAN is unsurprisingly amenable to formal cooperative agreements with such a durable financial supporter. Just as China and Japan have been proactive in pursuing agreements with ASEAN members, Korea has sought aggressively to keep pace with its Plus Three counterparts. During its "rush to catch up on free trade agreements," it completed successful negotiations with Japan and Singapore. [FN79] More significantly, in December 2005, Korea and ASEAN entered into a Framework Agreement on Comprehensive Economic Cooperation, which established the Korea-ASEAN Free Trade Area. [FN80] Korea's Ministry of Foreign Affairs and Trade was quick to compare its position to that of China, noting, "[a]lthough Korea initiated negotiations with ASEAN three years later than China, it has reached agreements to establish free trade zones by 2010, just [like] China." [FN81] In what is perhaps the most striking indication of Korea's competitive leadership aspirations, the Ministry further declared that "the Korea-ASEAN [Free Trade Agreement] will connect Northeast Asian and Southeast Asian markets centering in Korea and create a foundation for the establishment of the East Asian Community. We further believe that the [Free Trade Agreement] will contribute to Korea's rise as the hub of regional cooperation in Asia." [FN82] Thus, while China may have had a head start in unifying negotiations with ASEAN, Korea has the motivation to supersede it.

Besides competition from China, Korea has other incentives to lead cooperation with ASEAN in the form of oil, trade dependence, and a boost to its domestic economy. ASEAN is Korea's biggest oil provider and also supplies two-thirds of the liquefied natural gas that the country consumes. [FN83] Furthermore, Korea is highly dependent on trade, [FN84] and ASEAN is Korea's fourth-ranked export market. [FN85] The Korea-ASEAN Free Trade Agreement is expected to result in a $10 billion increase in Korean exports to ASEAN [FN86] and a 0.13 percent rise in Korea's gross domestic product. [FN87] Given these tangible benefits, Korea, like China, has an economic impetus to direct the charge toward economic regionalism through symbiotic formalized agreements with ASEAN members. It therefore has potential to be the unexpected leader of Asian economic integration, though not without persistent competition from China.

D. China's Agreements With ASEAN

According to one journalist, "China is driving intra-Asian economic integration through the Association of Southeast Asian Nations . . . . To sweeten the economic bonds, China has not been too pushy in other areas, stepping politely to address its strategic and diplomatic goals as it seeks the affections of surrounding countries." [FN88] The outcome of such coy gamesmanship has been favorable to China, which has concluded a series of agreements with ASEAN ahead of its closest rivals. These agreements, which may be loosely categorized as fundamental agreements, agreements with economic side effects, and general cooperation agreements, have been designed to facilitate cooperation onmultiple fronts, possibly entrenching China's status as the frontrunner in the competition to lead regional integration.

1. Fundamental Agreements

China's fundamental agreements with ASEAN include the Framework Agreement on Comprehensive Economic Cooperation and the Agreement on Trade in Goods. The Chinese Ministry of Foreign Affairs heralded the Framework Agreement, which was signed on November 4, 2002, as "a milestone," signifying that "China-ASEAN economic and trade cooperation ha[d] entered a new historic stage." [FN89] True to its name, the Framework Agreement includes a set of objectives, specific measures for comprehensive economic cooperation, a schedule of goods and tariff rates, provisions on trade-in-services, and a timeframe establishing a China-ASEAN free trade area by 2010 for older ASEAN members and 2015 for newer ASEAN members. [FN90] Moreover, the Framework Agreement strengthens cooperation in five priority sectors, namely agriculture, information and communications technology, human resources development, investment, and Mekong River basin development, as well as several other areas. [FN91] As such, the Framework Agreement has been the foundation for extensive cooperation between China and ASEAN on numerous issues, pushing forward a more complete form of regionalism that encompasses more than just economic integration.

Meanwhile, the Agreement on Trade in Goods, which was signed on November 29, 2004, will further facilitate a China-ASEAN free trade area. China's state-run media report that this resulting free trade area will have an impressive gross domestic product of $1.8 trillion and a trade volume of $1.2 trillion. [FN92] More tellingly, it "will allow all members to enjoy more favorable treatment in trade and investment than the World Trade Organization can offer." [FN93] In addition, the Agreement on Trade in Goods recognizes China as a "full market economy," [FN94] perhaps auguring other countries' changing perceptions about China and the role of its government in its economic policy.

2. Agreements with Economic Side Effects 

Some of China and ASEAN's agreements with economic side effects include the Memorandum of Understanding on Agricultural Cooperation and the Memorandum of Understanding on Cooperation in Information and Communications Technology. The terms of these temporary agreements indicate that China continues to play the part of a gracious benefactor in its interactions with ASEAN. In particular, the agricultural agreement provides that China will conduct training courses for ASEAN members and that China will supply machinery as well as the bulk of financing to cover the international travel expenses of both Chinese and ASEAN agricultural specialists, with no reciprocal provisions on ASEAN's part. [FN95] Similarly, pursuant to the information and communications technology agreement, China will open its domestic training bases to educate ASEAN personnel and "will actively assist and facilitate the construction and development of information infrastructure such as fixed/mobile communications networks, multimedia applications, and Internet in ASEAN Member Countries." [FN96]