"US Think Tank: IRA Relief Incentives Needed for Korea-Japan... Contributing to Breakthrough in Trilateral Cooperation"

US Pacific Forum Report
"Strengthening Security Cooperation System to Counter China through Korea-Japan Compensation"
Suggestion for South Korea's Participation in the 'Quad'

There have been calls within the United States to provide incentives to South Korea and Japan, who have opened the door to strengthening the trilateral cooperation among the US, South Korea, and Japan through improving bilateral relations, despite domestic and international political burdens. It is pointed out that this could strengthen the East Asian security cooperation system to counter China. There are also suggestions to include South Korea as a member of the Quad, a multilateral security forum among the US, Japan, Australia, and India, or to have South Korea participate in a 'Quad Plus' format.

According to major foreign media on the 26th, the Pacific Forum, a US foreign policy and security think tank, stated in a recent report that "South Korea and Japan have shown progress toward reconciliation."

Recently, South Korea proposed solutions to Japan's forced labor issue, and Japan lifted export restrictions, leading to a rapid thaw in the bilateral relations that had deteriorated during the previous Moon Jae-in administration. The forum evaluated that President Yoon made a bold decision to restore relations with Japan despite domestic criticism.

The forum said, "President Yoon took a bold step despite precedents and public opinion," adding, "While President Yoon’s closer approach to Japan could cause a rapid change in the security dynamics of Northeast Asia, the outcome does not rest entirely on him. Such measures should not be taken by President Yoon alone."

It explained that efforts from surrounding countries, including the US, are necessary to continue improving South Korea-Japan relations. It emphasized that the lack of cooperation between the two countries could hinder joint responses to malicious acts by North Korea and China, mentioning the provision of incentives such as improvements to the Inflation Reduction Act (IRA). The IRA has sparked controversy as it applies tax credit benefits only to electric vehicles assembled in North America, potentially disadvantaging South Korean and Japanese manufacturers.

The forum stressed, "Due to legislation passed last year by the US Congress to promote reshoring, subsidies were nullified even for South Korean and Japanese manufacturers planning to build factories on the US mainland," adding, "Now that bilateral relations are improving, it is the right time to take measures to alleviate such disadvantages."

There was also an argument for including South Korea in the Quad. The forum stated, "If the Quad cannot incorporate South Korea as the fifth member, it should strengthen cooperation by allowing South Korea to participate in a Quad Plus format," adding, "Although Japan has not been proactive in supporting South Korea’s participation in groups like the Group of Seven (G7), it should now support South Korea’s involvement in ASEAN and other forums to counter China’s influence."