South Korean authorities had concerns about potential Chinese economic retaliation when they charged marine technology firm SI Innotec for violating trade laws in relation to its work on Taiwan’s new military submarine program. In a police document and affidavit, authorities mentioned the risk of a crisis similar to the one caused by Beijing’s sanctions in 2016 when South Korea decided to install the U.S. anti-missile system THAAD. The charges against SI Innotec and two other South Korean companies allegedly involved in supplying Taiwan were in part influenced by political considerations regarding the economic consequences of an rupture with China. Despite the ongoing tensions between China and Taiwan, South Korea has refrained from arming the island and has no formal diplomatic ties with Taiwan.
The charges against SI Innotec and the other South Korean companies were driven, at least in part, by concerns of potential Chinese economic retaliation. The South Korean authorities were worried about a repeat of the sweeping sanctions imposed by China in 2016 after South Korea’s decision to install the THAAD missile defense system. These concerns were reflected in a police affidavit and document, which also expressed fears of a potential crisis similar to another THAAD deployment. The political considerations surrounding the charges highlight the delicate balance South Korea must maintain between its relationship with China, its largest trading partner, and its national security interests.
While tensions between China and Taiwan continue to escalate, South Korea has refrained from arming Taiwan and has no formal diplomatic ties with the island. South Korea’s investigations into the allegedly involved companies have been influenced by concerns of economic ramifications with China. However, the charges and investigations against these companies demonstrate the complexities involved in navigating the delicate balance between economic interests and national security concerns. South Korea’s decision to charge SI Innotec and the other companies suggests that the fear of potential economic retaliation played a role in the legal proceedings, highlighting the ongoing struggle for countries to engage with Taiwan politically and economically without provoking China.
