[Korea's Great Transition, Korea-Japan Future Cooperation] "Tangible Results in Responding to an Aging Society Can Only Be Achieved Through Korea-Japan Partnership"

60 Years of Korea-Japan Relations: Toward Future Cooperation
Park Yongmin, Head of KOTRA Japan Regional Headquarters
Efforts to Diversify Supply Chains for Rare Earth Elements and Other Minerals
Rising Demand in the Senior Industry: Opportunities for Korean Expansion
Overcoming Challenges in Entering Third-Country Markets Together

"The year 2025 marks the entry of Japan's baby boomer generation, known as the 'Dankai Generation,' into the 75-and-older age group. This presents a significant opportunity for Korean healthcare and senior-related industries to enter the Japanese market."

Park Yongmin, Head of the Japan Regional Headquarters at the Korea Trade-Investment Promotion Agency (KOTRA), highlighted this point in an interview with Asia Economy on the 20th, noting the expanding demand for senior-related industries in Japan and the potential for collaboration with Korean companies. He explained, "The Japanese government expects that by 2040, people aged 65 and older will account for about 34.8% (39.28 million people) of the total population in Japan," and added, "Over the next 15 years, demand for senior-related industries and services in Japan is expected to increase."

Since February of this year, he has been working at the Japan Regional Headquarters in Tokyo, engaging with local government agencies and companies. Through his activities in Japan, he has directly sensed that Japanese companies are eager to strengthen cooperation with Korea. He has repeatedly emphasized the necessity of bilateral cooperation. Park stated, "Given the geographical proximity of our countries and the similarity of challenges such as low birth rates and population aging, there is a strong need for collaboration," and predicted, "Industries offering senior-exclusive services that incorporate digital technologies, such as AI care robots, telemedicine, and smart homes, are expected to be promising." He also noted the need to respond to new consumer trends, such as active seniors and single-person elderly households.

Park Yongmin, head of the Japan Regional Headquarters of the Korea Trade-Investment Promotion Agency (KOTRA), is conducting an interview at the KOTRA Japan Regional Headquarters located in Tokyo, Japan. KOTRA.

With this awareness, he said, "If the two countries can identify fields where cooperation is needed, such as those with high cost issues, it will be possible to establish partnerships that offset mutual risks." He emphasized that, amid growing global economic uncertainty, developing new models of economic cooperation is the most pressing challenge, and this is an area of significant interest for Japanese companies as well.

Park explained, "For example, as the conflict between the United States and China becomes more pronounced, both Korea and Japan are increasingly demanding stable supply chains for critical mineral resources," and added, "In particular, Japan is making efforts to diversify its sources of mineral imports, such as rare earth elements, to reduce its dependence on China." He suggested that companies from both countries could pursue joint projects in mineral resource development and recycling, thereby offsetting mutual risks.

Park Yongmin, Head of the Japan Regional Headquarters at the Korea Trade-Investment Promotion Agency (KOTRA), is conducting an interview at the KOTRA Japan Regional Headquarters located in Tokyo, Japan. KOTRA.

He believes that Korea and Japan could gain even greater advantages by jointly advancing into third-country markets, such as India and Vietnam, rather than limiting themselves to simple bilateral cooperation. According to a KOTRA survey conducted last year of 80 companies entering emerging markets, there was strong business demand for regions such as Vietnam, Indonesia, and India. Similarly, in the 2023 "Priority Countries for Promising Business Expansion over the Next Three Years" survey conducted by the Japan Bank for International Cooperation (JBIC), Japanese companies selected India and Vietnam as promising countries for business expansion.

Park pointed out, "Despite high market potential, complex administrative procedures, lack of transparency in regulations, absence of local networks, difficulties in finding local partners and managing operations, and weaker price competitiveness compared to local companies were cited as common challenges," and added, "Cooperation to overcome these issues together is the most important point at this time." He continued, "India serves as a good reference," explaining, "Within India's investment promotion agency, there are dedicated organizations such as 'Korea Plus' for Korean companies and 'Japan Desk' for Japanese companies. In the same way, Korea and Japan should establish systems for joint response in third countries and collaborate in fields where each country has strengths."

KOTRA is also focusing on supporting startups from both countries to enter new markets. Park stated, "Recently, there has been a growing number of inquiries from Korean startups seeking to enter the Japanese market, particularly in the field of digital technology." He added, "The Japanese government has put forward the 'Society 5.0' vision, aiming to solve social problems using science and technology such as artificial intelligence and the Internet of Things. In this process, Japan is actively promoting pilot projects and public-private partnerships with startups that address social challenges, which could present opportunities for Korean companies as well."