The Korea-Japan Economic Association held the 58th Korea-Japan Economic Conference with the Japan-Korea Economic Association on May 19-20 at The Okura Tokyo. [Provided by the Korea-Japan Economic Association]

Business leaders from South Korea and Japan agreed on the need to strengthen economic cooperation between the two countries, including advancing discussions on South Korea's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), amidst escalating global economic tensions.

The Korea-Japan Economic Association and the Japan-Korea Economic Association held the 58th Korea-Japan Economic Conference on May 20 at the Okura Hotel in Tokyo, Japan, and adopted a joint statement containing these points.

In their joint statement, they pointed out, "The vulnerabilities in the stable supply chains for energy and critical minerals are becoming clearly evident, and the foundations of economic security are being significantly shaken." They added, "In an international economic environment of increasing uncertainty, maintaining and strengthening a free and open economic order is the most important task."

They further evaluated the Korea-Japan relationship as being in a "very favorable state with stable diplomatic relations and progressing mutual understanding." They pledged to "further deepen the Korea-Japan partnership based on discussions such as the concept of a Korea-Japan economic community, thereby enhancing the international community's presence and voice, and playing a greater role in maintaining and stabilizing the economic order."

A specific example of the direction for Korea-Japan economic cooperation mentioned was the pursuit of South Korea's accession to the CPTPP.

The CPTPP is a multilateral free trade agreement (FTA) launched in 2018 by Asia-Pacific countries, led by Japan and others.

South Korea is also pursuing accession, but this issue was not discussed at the Korea-Japan summit held in Andong, Gyeongbuk, the previous day.

Korean and Japanese business leaders emphasized, "The CPTPP is an important framework for global-scale multilateral economic integration." They added, "Korean and Japanese business leaders anticipate concrete progress in the review for South Korea's accession and Japan's support towards its realization, and strongly support the efforts of both countries."

Koo Ja-yeol, Chairman of the Korea-Japan Economic Association (left), and Koji Yoshiyasu, Chairman of the Japan-Korea Economic Association [Yonhap News Agency]  

Koo Ja-yeol, Chairman of the Korea-Japan Economic Association (Chairman of the LS Board of Directors), expressed his expectations to reporters after the joint statement was announced, saying, "If the South Korean government applies (for CPTPP accession), the Japanese government will also actively review it."

Koji Yoshiyasu, Chairman of the Japan-Korea Economic Association (Chairman of Asahi Group Holdings), stated, "Fundamentally, CPTPP accession is a matter that South Korea must decide, and I believe Japan should not express its opinion." He added, "However, if South Korea joins, I believe the Japanese government and business community will actively support it. I believe that if South Korea joins, the scope of multilateral cooperation will broaden."

In addition, business leaders agreed to strengthen cooperation in new industrial fields such as artificial intelligence (AI).

They decided to create a third pole through solidarity between the two countries in a situation where the United States and China are leading in advanced technologies like AI, and to foster new industrial fields while simultaneously supporting startups.

Regarding this, Chairman Koji commented, "It is an understanding that it is important to come together by contributing the strengths of both countries, rather than falling into a unilateralist approach."

Meanwhile, although the worsening Middle East situation and the energy crisis resulting from the de facto blockade of the Strait of Hormuz were not specifically mentioned in the joint statement, both Korean and Japanese business leaders shared the understanding that the prolonged situation would be a direct blow to both economies.

Chairman Koji stated, "Japan is striving to avoid risks by releasing its strategic oil reserves, and South Korea is seeking alternative supply sources, but the supply instability has not been resolved." He added, "I believe it is time for both countries to share countermeasures and take action."