Choi Tae-won: "Cooperation between Korea and Japan is not a choice but a necessity"

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and SK Group, emphasized that "cooperation between Korea and Japan has become a necessity, not a choice."

Chairman Chey Tae-won of SK Group and Chairman of the Korea Chamber of Commerce and Industry is delivering the keynote speech at the opening ceremony of the 56th Korea-Japan Business Conference held at the Okura Hotel in Tokyo on the 14th. [Image source=Yonhap News]

On the 23rd, Chairman Choi spoke as a speaker at the '29th Future of Asia' forum held at the Imperial Hotel in Tokyo, hosted by Nihon Keizai Shimbun (Nikkei). At the forum's 'Korea-Japan Business Leaders Dialogue,' Chairman Choi exchanged views on the necessity of Korea-Japan cooperation with Takeshi Ninami, President of Suntory Holdings and Secretary-General of the Japanese economic organization Keizai Doyu-kai.

Chairman Choi diagnosed that Korea and Japan have both fallen into a low-growth trap, and that the export-driven economic model pursued so far has effectively reached its limits. He emphasized that cooperation is essential due to potential difficulties in energy supply and demand.

He also pointed out that despite massive government funding, the serious low birthrate problem has not been resolved. He warned that if this trend continues, both countries could face a decline in their global standing as well as economic survival issues.

Chairman Choi projected that since both countries share common challenges of aging populations and population decline, abolishing tariffs would create a huge market, increasing total production and improving consumer welfare. He stated, "To give hope to future generations, we need to create a larger market," arguing that if the two countries combine, a market worth 6 to 7 trillion dollars (approximately 8,193 trillion to 9,558 trillion won) with 200 million people would be born. He added, "If Korea and Japan grow their market like the European Union (EU), it would significantly contribute to the economic integration and prosperity of the entire Asia."

Furthermore, from an economic security perspective, he added that the two countries could join hands based on a larger market to create new economic norms. Chairman Choi cited areas where cooperation would be easy, such as liquefied natural gas (LNG), hydrogen and ammonia imports and distribution, emphasizing that "just purchasing (resources) together can reduce costs." He also explained that startup nurturing and the 'silver industry' targeting the elderly are fields where the two countries can connect.

In response, President Ninami expressed agreement with Chairman Choi's view that Korea-Japan cooperation has great potential to develop the Asian economy. He also mentioned the necessity of Korea's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).