Sweden's Diplomatic Power Delegation to Korea in AI, Green Technology and defence and security

I've always been fascinated by the quiet intensity of Swedish diplomacy—it’s like a meticulously engineered machine that, when it moves, does so with purpose and precision. Over the past week, watching the news unfold about the Prime Minister's high-level business delegation to East Asia, I felt a genuine thrill. It wasn't just another trade trip; it felt like a deliberate, strategic pivot, confirming what many of us in the business world have long suspected: the future isn't just digital and green; it’s global, and a significant portion of that global gravity is shifting toward dynamic Asian partners like South Korea and Japan. It's a striking reminder that even the most innovative nations need to constantly nurture relationships to stay ahead in the technology race.

---

🌍 Strategic Partnerships: Sweden's Asia Initiative

The recent high-level business delegation, led by the Prime Minister and organized by Business Sweden, to South Korea and Japan from December 3–6, 2025, marks a significant commitment to strengthening bilateral trade and strategic cooperation. The mission focused on critical, future-proof sectors, underscoring Sweden’s ambition to be a leader in global innovation and sustainability.

• This initiative aligns with the Swedish Government's "Focus Asia" strategy for trade, investment, and global competitiveness, aiming to diversify and deepen economic ties.
• The delegation included major Swedish companies like Ericsson, SAAB, and Vattenfall, signaling the national importance of these markets.
• The visit also aimed to strengthen defense and security ties, recognizing both nations as strategic partners in the Indo-Pacific region.

Deepening Ties with South Korea

South Korea, being Sweden's third-largest export market in Asia, offers strong synergies with Swedish expertise in green transition and advanced manufacturing. The program focused heavily on industrial and energy collaboration.

• Industrial Cooperation: High-level discussions were held to strengthen collaboration in strategic industrial sectors, aiming to leverage South Korea’s innovation power.
• The meetings provided opportunities for Swedish companies to engage with key customers and high-level decision-makers.
• Energy and Investment: A dedicated roundtable focused on energy cooperation, recognizing South Korea’s climate agenda prioritization.
• The mission highlighted Sweden as an attractive investment destination, setting the stage for increased Korean investment, particularly ahead of the Join Sweden Summit next year.

Enhancing the Strategic Partnership with Japan

The Japan component of the mission was heavily geared towards the upcoming World Expo 2025 in Osaka, positioning the visit as a 'Road to Osaka' initiative to maximize Sweden's exposure and business opportunities. This builds upon the Strategic Partnership established between the two countries.

• Sustainability and Technology: The Sweden-Japan Sustainability Summit was a core event, exploring joint strategies to accelerate the green transition.
• Key focus areas included circularity, energy efficiency, and reducing emissions in healthcare.
• Digitalisation and Innovation: Discussions re-affirmed commitments to collaborate on inclusive digitalization, Data Free Flow with Trust (DFFT), and the realization of safe, secure, and reliable AI systems.
• This includes supporting joint research on 6G development and promoting secure communications infrastructure, such as the Arctic fiber optic cable project.

💡 Focus Sectors: AI and Green Technology

The choice of AI and green technology as primary sectors for this high-level engagement is no accident; these represent the nexus of global economic transformation and the areas where Sweden holds a distinct competitive advantage.

🤖 The Artificial Intelligence Frontier

Both South Korea and Japan are global powerhouses in technology, making collaboration in AI a high-stakes, high-reward endeavor. Sweden is actively working to establish a robust and trustworthy AI ecosystem domestically, which it can now export.

• AI System Safety and Ethics: Discussions in both countries emphasized the need for a global framework to ensure AI development is safe, secure, and ethical.
• Sectoral Application: Swedish companies are showcasing AI applications in strategic areas:
• Sustainable Transport: Utilizing AI for optimized logistics and energy-efficient rail systems (e.g., Alstom's role in Sweden).
• Welfare and Healthcare: Leveraging AI to improve public services and resource efficiency, a key focus for Swedish AI initiatives like those led by RISE.

🌱 Accelerating the Green Transition

Sweden's commitment to decarbonization and sustainable innovation is a major draw for its Asian partners. The country's expertise in clean energy, circular economy solutions, and sustainable mobility is globally recognized.

• Electric Mobility Momentum: Swedish automakers like Volvo and Polestar continue to lead the push for the EU's 2035 petrol car ban, demonstrating a clear commitment to electrification that resonates in Asian markets.
• Circular Economy Solutions: The delegation explored partnerships in developing circular economy models and sustainable manufacturing processes, areas where Sweden is investing heavily (e.g., the SEK 95 million green technology innovation platform).
• Energy Collaboration: The Memorandum of Cooperation on Energy and Innovation with Japan, following a previous visit, signals a long-term commitment, focusing on areas like nuclear energy (SMRs), batteries, and energy efficiency.

📰 Sweden's Domestic Business Pulse: Last Week in Review

While the Prime Minister was securing global partnerships, the Swedish business landscape saw its own set of significant developments in the past week (December 1–7, 2025).

• Alstom's Economic Impact: The mobility giant released its impact report for Sweden, highlighting a substantial contribution to the economy and sustainable transport.
• The company supports over 3,000 jobs and contributes SEK 1.4 billion to Sweden's GDP.
• It also emphasized its role in the decarbonized transport system, including highly recyclable regional trains.
• Automotive Electrification Standoff: Swedish carmakers Volvo and Polestar were vocal proponents urging the EU to stick to the 2035 ban on new petrol and diesel cars, amidst pressure from other European countries.
• They argue that slowing down the transition sends the wrong signal to consumers and stifles innovation in EVs.
• Stockholm Stock Exchange: The week began with a slight dip, reflecting global nervousness about US economic data, with the OMXS index closing down 0.3 percent on Monday.
• Defense group Saab, despite securing a large order for mobile air defense from Lithuania, saw its share price decline.
• Conversely, clothing giant H&M experienced a positive surge, rising 2.8 percent.

Conclusion

The high-level delegation to South Korea and Japan, led by the Prime Minister, was more than a routine trade mission; it was a potent demonstration of Sweden's strategy to anchor its economic future in Asia, focusing on high-growth, high-tech sectors. By prioritizing AI, green technology, and industrial collaboration, Stockholm is not only reinforcing existing strong bilateral ties but is actively co-creating a sustainable, digitalized future with these key partners. This proactive international engagement, coupled with steady domestic progress in areas like sustainable mobility and AI development, positions Sweden robustly in a competitive global arena. The commitment to strategic partnerships in the Indo-Pacific region ensures that the nation remains at the forefront of global innovation and trade.

FAQ

❓ What was the main focus of the Swedish business delegation to South Korea and Japan?

The delegation's primary focus was to strengthen and expand trade relations in strategic sectors, specifically Artificial Intelligence (AI), green technology, and defense and security. The mission also aimed to enhance overall strategic, bilateral relations with both countries.

❓ Why are South Korea and Japan important partners for Sweden in these sectors?

South Korea and Japan are highly developed, innovation-driven economies that are prioritizing the green transition and advanced technologies. Sweden offers world-leading expertise in sustainable solutions, electrification, and ethical digitalization, creating strong synergies and mutual opportunities for growth and investment.

❓ Which Swedish companies participated in the business delegation?

A significant business delegation, organized by Business Sweden, accompanied the Prime Minister and ministers, including representatives from major Swedish industrial and technology players such as Ericsson, SAAB, and Vattenfall.

❓ How does this delegation relate to Sweden's domestic focus on AI and sustainability?

The international outreach mirrors Sweden's domestic strategy to be a leader in these fields. By forging partnerships abroad, Sweden gains access to global best practices and markets for the AI and green solutions being developed domestically by organizations like AI Sweden and through various government-backed innovation platforms.

❓ What was a key domestic business news item in Sweden last week?

A key domestic news item was the release of Alstom's impact report for Sweden, which highlighted the company's substantial economic contribution, supporting over 3,000 jobs and contributing SEK 1.4 billion to GDP, alongside its role in advancing sustainable rail transport technology.

---

Sources

• Alstom. (December 4, 2025). Alstom releases its Sweden impact report, with over 3000 jobs supported and strong community engagement.
• Business Sweden. (December 2, 2024 - Referenced as pre-briefing for December 2025 event). Business Sweden leads a large business delegation to South Korea and Japan from 3–6 December alongside Prime Minister Ulf Kristersson.
• The Guardian. (December 2, 2025). 'The Chinese will not pause': Volvo and Polestar bosses urge EU to stick to 2035 petrol car ban.
• Government.se. (December 4, 2024 - Referenced as foundational agreement). Sweden and Japan enter new strategic partnership.
• Innovation News Network. (December 1, 2025). Sweden invests SEK 95 million to lead global green technology race.
• Nordic Defence Sector. (December 3, 2025). Swedish High-Level Delegation Visits Japan and South Korea.
• Sweden Herald. (December 1, 2025). The stock market started December down.