Korea—Russia Dialogue Forum: experts from the two countries discuss major issues of the economy and technology development

The participants were greeted by Lee Kyu Hyung, Chair of the Coordinating Committee of the Korea—Russia Dialogue (KRD) Forum on the Korean side and ex-Ambassador of the Republic of Korea to the Russian Federation. He expressed confidence that the seminar would reaffirm our common commitment to develop mutually beneficial economic cooperation. According to Mr Lee Kyu Hyung, the exchange of best practices and the search for new forms of interaction and ways to enhance the relations between the two countries are of particular value in such meetings.

Nikolay Kropachev, Chair of the Coordinating Committee of the KRD Forum on the Russian side, Rector of St Petersburg University, noted that the global crisis and economic restrictions are forcing us to find new ways of working together. One of these new ways is through modern technologies, which are given a priority by St Petersburg University.

Innovative solutions and technological developments of the Distributed Ledger Technologies Centre at St Petersburg University are implemented in: transportation and warehouse logistics management systems; industrial enterprises; energy and financial sectors; and government agencies. For many years, our experts have been engaged in research and education, developing academic programmes and providing expert services in the area of distributed ledger technologies.

Nikolay Kropachev, Chair of the Coordinating Committee of the KRD Forum on the Russian side, Rector of St Petersburg University

Kim Gi-hyun, General Manager of the International Cooperation Department at the Korea International Trade Association (KITA), also addressed the participants at the opening of the seminar. He underlined the relevance of the topic for discussion and the importance of finding new forms of cooperation under modern conditions.

The seminar was moderated by: Hur Seung Chul, Executive Secretary of the KRD Forum on the Korean side, Professor at Korea University; Sergey Frank, Director of the KRD working group on "Economy, Trade and Resources" on the Russian side, Advisor to the Chairman of the Management Board of PAO NOVATEK and Chairman of the Board of Directors of SMART LNG; Lee Sang Joon, Secretary of the KRD working group on "Economy, Trade and Resources" on the Korean side, Professor at Kunming University; and Professor Sergei Belozerov, Head of the Department of Risk Management and Insurance at St Petersburg University, Doctor of Economics.

Kim Deuk Kab, Professor at Yonsei University, made a keynote presentation on the implementation of the Korea-Russia framework for cooperation in global value chains. He highlighted the areas in which our countries could most effectively cooperate in order to unleash their full trade and technological potential. The expert stressed that the Republic of Korea and the Russian Federation should move from inter-industry cooperation to intra-industry trade and collaborative action, and focus on developing the Far East and the Arctic.

Sergey Frank — one of the moderators of the seminar — emphasised the importance of fostering and maintaining the relationships of cooperation, goodwill, and mutual trust between Russia and the Republic of Korea. These relationships have been built up over the last three decades for the sake of future generations of both countries. Sergey Frank noted that modern information technologies, blockchain developments, and value chains are industries that will continue to develop and provide new opportunities, especially in the areas of logistics and energy.

Alexander Masaltsev, Trade Representative of the Russian Federation in the Republic of Korea, delivered a talk on economic cooperation between Russia and South Korea in the area of information and communication technologies and the practical aspects of Korea-Russia cooperation. He said that the Republic of Korea is one of Russia’s key trading partners. For instance, a Russian development in the field of underground utility locating technologies — electronic marker locators — has already come to the attention of South Korean colleagues who appreciate the quality of Russian products.

Korea-Russia cooperation in high-tech industries has a strong potential, which can be realised through the coupling of Russian fundamental research with South Korean experience in the commercialisation of research developments.

Alexander Masaltsev, Trade Representative of the Russian Federation in the Republic of Korea

Elena Sokolovskaia is Leading Research Associate in the Laboratory of Asian Economic Studies and Associate Professor in the Department of Risk Management and Insurance at St Petersburg University. She presented the findings of a study that aims to identify potential areas for cooperation between Russia and the Republic of Korea associated with blockchain technologies.

The study was carried out in collaboration with Professor Sergei Belozerov, Head of the Department of Risk Management and Insurance at St Petersburg University. The research findings show that blockchain as a disruptive technology can radically change the identities of such economy sectors as: healthcare; energy; supply chains; and online platforms. According to the experts, blockchain technologies can facilitate international cooperation, creating a secure platform for data exchange and ensuring trust between business partners. Blockchain technologies go far beyond cryptocurrencies and tokens and can be used as an economic and administrative management tool with a large spectrum of applications.

The team of the National Technology Initiative (NTI) Competence Centre "The Distributed Ledger Technologies Centre at St Petersburg University" have developed the following blockchain products: a logistics blockchain system "Trevo"; its extension "Edemes" — for identifying and monitoring the movement of cultural properties; and a decentralised inter-bank messaging system DCMS.

Aleksandr Prasolov, Professor in the Department of Modelling in Economic Systems at the Faculty of Applied Mathematics and Control Processes at St Petersburg University, spoke about the multi-criteria optimisation of customs duties. He explained the characteristics of the customs tariff and the mathematical model for the distribution of domestically produced goods between the domestic market and export market. Professor Prasolov presented his own calculations of the optimal export duty, the producer income and the government revenue, which can serve as a basis for the price control in the domestic market without harming the interests of all economic agents.

Maria Tsenzharik, Associate Professor in the Department of Economics of Enterprise and Entrepreneurship at St Petersburg University, Candidate of Economics, focused on blockchain technologies in the e-commerce industry with the participation of Russia and the Republic of Korea. She highlighted the importance of traceability and automated document management in supply chains. A large number of documents are required for import and export transactions, such as: the customs value declarations; commercial invoices; transport documents; and others. Blockchain and smart contracts enable automating the process and facilitating the exchange of documents with fewer intermediaries, making operations more efficient, transparent and reliable.

Kirill Dorozhkin, Expert in the Distributed Ledger Technologies Centre at St Petersburg University, supported the previous speakers’ statements emphasising the importance of blockchain technologies in supply chains. He also drew attention to the fact that blockchain is now applied to a wide variety of fields, including: finance; voting; education; and even art.

Distributed ledgers, blockchain and tokenisation are much more than just technologies. These are a new approach and operating principle of regions, organisations and communities.

Kirill Dorozhkin, Expert in the Distributed Ledger Technologies Centre at St Petersburg University

Kim Sang Hwan, Head of Business Incubation Centre at the Korean Techno-Venture Foundation, spoke about the current state and prospects of Korea-Russia cooperation in the area of technological innovation. He stressed that the Republic of Korea and the Russian Federation should foster cooperation and communication at the short-, medium- and long-term levels, effectively allocate responsibilities among themselves, as well as conduct and share research. He also outlined the opportunities for creating a base of technologies and institutions available in both countries on an open online platform and for joint development of start-up projects.

At the event, presentations were also made by: Lee Sung Woo, Director of the General Policy Research Division at the Korea Maritime Institute (KMI) and Park Jong-ho, Director-General of the Korea-Russia Business Council.

At the end of the seminar, South Korean and Russian experts took part in panel discussions. Among the panellists were: Andrei Kovsh, Associate Professor in the Department of American Studies at St Petersburg University, Candidate of History; Song Hwang Kyung, Professor at Seoul National University; Mikhail Komarov, Professor in the Department of Business Informatics at the Graduate School of Business, National Research University ‘Higher School of Economics’; Kim Dong Wook, Deputy General Manager of the International Cooperation Department at the Korean International Trade Association; Kim Young Sik, Professor in the Department of International Commerce and Area Studies at the Gangneung-Wonju National University; Kirill Dorozhkin, FinTech and EduTech Expert in the Distributed Ledger Technologies Centre at St Petersburg University; Lee Dae-sik, Head of the Research Department of the Future Consensus Institute; and Daria Martynova, Leading Research Associate of the Centre for Eurasian studies of the Institute of Contemporary International Studies at the Diplomatic Academy of the Ministry of Foreign Affairs of Russia.