As the 25th Asia-Pacific Economic Cooperation (APEC) summit concluded in Lima, Peru, South Korea's diplomatic engagement revealed both opportunities and limitations in its regional strategy. President Yoon Suk Yeol's participation at both APEC and the subsequent G20 summit tested Seoul's diplomatic capabilities, particularly in balancing its alliance commitments with broader regional engagement between the United States and China.

Most notably, the event provided a critical platform for reinforcing U.S.-South Korea-Japan trilateral cooperation, building upon the foundations laid at the Camp David Summit. The establishment of a permanent secretariat between the three nations signals a strategic attempt to institutionalize cooperation at both leadership and working levels — a move that appears designed to weather potential shifts in U.S. foreign policy following the 2024 presidential election.

However, this arrangement faces realistic challenges. The precedent of the Korea-China-Japan Trilateral Cooperation Secretariat, which remained inactive for over four years at the leadership level despite its permanent status, serves as a sobering reminder that institutional frameworks alone cannot guarantee sustained cooperation, particularly with the uncertainty surrounding regional dynamics under the new American leadership.

Perhaps more unique was the first bilateral meeting between South Korean and Chinese leaders in two years. The discussions centered on the growing Moscow-Pyongyang relationship, with President Yoon expressing explicit concerns about North Korea's troop deployment to Russia. Beijing's response, including proposing 1.5-track diplomacy, suggests a calculated opening for dialogue while maintaining strategic ambiguity. President Yoon's subsequent comment to Brazilian media that Korea does not necessarily have to make a choice between two superpowers appears to reflect a nuanced approach to strategic autonomy, one that may prove crucial as global power dynamics continue to evolve.

Looking ahead to 2025, South Korea's hosting of APEC in Gyeongju presents both opportunities and challenges. Economic projections from the Gyeongbuk Development Institute suggest the summit could generate approximately 1.4 trillion won ($1.03 billion) in regional economic benefits and 1.8 trillion nationally. With over 200 scheduled meetings — including leadership summits and various ministerial conferences — the event is expected to attract an additional 500,000 domestic and international visitors.

However, recent experiences with international events, including the Saemangeum World Scout Jamboree in 2023 and the unsuccessful Busan Expo bid, offer important lessons for policymakers. These events highlighted the dangers of overreliance on soft power assets without adequate infrastructure and preparation. While the nature of the two events is admittedly different from that of APEC, the success of the 2025 summit will require a more comprehensive approach that balances cultural promotion with practical considerations and robust organizational infrastructure.

The path to a successful summit rests on three pillars, each drawing crucial lessons from Korea's past experiences. First, infrastructure development must be approached with long-term sustainability in mind, creating lasting value for Gyeongju beyond the summit itself. This lesson resonates given Korea's mixed legacy of international events — from the 2014 Incheon Asian Games to the 2018 Pyeongchang Winter Olympics — where host cities still grapple with underutilized facilities and struggle to maintain their postevent relevance.

Second, local economic engagement must transcend the traditional model of temporary summit-driven gains. Success requires a city-wide initiative, led by local authorities, to create an ecosystem that makes Gyeongju worth revisiting.

Finally, Gyeongju's rich cultural heritage should serve as more than a scenic backdrop — it should be integral to Korea's vision for regional cooperation and dialogue. The unsuccessful 2030 Busan Expo bid offers a valuable lesson here; it failed partly because it didn't effectively communicate Busan's unique value proposition to the international community. For APEC 2025, Gyeongju's historical significance should be woven into a compelling narrative about Asia's shared cultural heritage and collective future.

The broader context for the event is the evolving nature of multilateral institutions in an era of strategic competition. While some analysts point to the declining functionality of traditional multilateral frameworks — evidenced by incidents such as Russia's veto of the United Nations Panel of Experts renewal —forums like APEC retain significant symbolic and practical value. They provide crucial platforms for bilateral engagement on the sidelines of larger meetings and facilitate dialogue across strategic divides. The 2023 San Francisco meeting between U.S. President Joe Biden and Chinese President Xi Jinping, followed by the constructive exchanges at Lima in 2024, demonstrates APEC's evolving role from a purely economic forum to a crucial mechanism for strategic de-escalation and diplomatic bridge-building.

For Seoul, which aspires to be a Global Pivotal State, the 2025 APEC summit presents a moment to showcase its diplomatic sophistication. The timing is significant, with China also hosting APEC the following year, creating a unique "Asian moment" in regional diplomacy. Success will require a coordinated effort across government levels, from municipal to national, supported by bipartisan legislative cooperation and civil society engagement. The establishment of a comprehensive advisory committee structure for early preparation will be essential to ensure both efficient preparation and meaningful outcomes.

Two decades after hosting APEC 2005 in Busan, Korea returns to the APEC stage profoundly transformed — having evolved from a regional economic power into a global technological, cultural and diplomatic force. The 2025 Gyeongju summit presents a historic opportunity to showcase this evolution, requiring efficient coordination between national and local governments to demonstrate Korea's enhanced capacity for regional leadership.

Park Jin-wan is a nonresident James A. Kelly Korea Fellow at Pacific Forum.