As the second Trump administration in the United States strengthens trade policy centered on economic security, a call is growing for South Korea and Japan to respond jointly to the reshaping of supply chains for critical minerals and advanced industries. The proposal urges the two countries to identify joint projects using overseas resource development and multilateral cooperation platforms to secure industrial competitiveness amid global supply chain shifts.
The Korea Economic Research Institute, affiliated with the Federation of Korean Industries, said the message was shared at the “Korea-Japan New Economic Cooperation Seminar in an Era of Compound Crises,” held on 22 at the Keidanren Kaikan international conference hall with the Keidanren Institute of Policy and Management. Organizers said the seminar was convened to seek new directions for bilateral economic cooperation amid a rapidly changing global economy.
Yeo Han-koo, South Korea’s trade minister, said in a keynote speech on “Directions for Korea-Japan Economic and Trade Cooperation” that the two countries face “shared challenges and uncertainty.” With instability in the Middle East continuing and U.S.-China strategic competition intensifying, he said, flexible solidarity is needed among countries that share values and interests.
Yeo said supply chain cooperation should be built on the Korea-Japan Supply Chain Partnership Arrangement, including responses to disruptions and joint exploration and investment in critical minerals. He also emphasized cooperation through multilateral platforms such as the Forum for Geo-strategic Resource Cooperation and the International Energy Agency.
South Korea and Japan have focused on strengthening cooperation in advanced industries such as semiconductors and stabilizing supply chains for rare earths and other materials. South Korea is pursuing three supply chain laws and a comprehensive rare earths plan, while Japan is conducting domestic rare earth exploration and development under its economic security law.
Yeo said the two countries should strengthen mutual stockpiling and swap cooperation for oil and gas to enable rapid joint responses if a supply crisis occurs. He said South Korea has the world’s largest storage infrastructure, while Japan operates surplus volumes beyond domestic demand, creating potential synergies. In March, on the sidelines of the Indo-Pacific Energy Security Ministerial Meeting, Korea Gas Corp. and Japan’s largest LNG company, JERA, signed an agreement on LNG supply and demand cooperation and pledged to pursue measures including LNG swaps.
Ahn Sung-bae, vice president of the Korea Institute for International Economic Policy, said the two countries should expand joint projects in third countries, including mining development and infrastructure investment. He said South Korea and Japan already have experience cooperating on resource development projects involving nickel, copper and iron ore. Ahn added that coordination is important because the multilateral Agreement on Critical Minerals could influence future price mechanisms, investment standards and supply chain rules.
Ahn said it is urgent for South Korea and Japan to reduce dependence on specific countries for key minerals such as lithium, graphite and rare earths. He said both are exposed to supply chain risks because dependence is high at the refining and processing stages, and called for diversification centered on strategic industries including critical minerals, semiconductors and energy.
Kuno Arata, a professor at Asia University, said the top priority is reducing reliance on specific countries in strategic industries such as semiconductors, batteries and critical minerals, and building a system that allows joint responses in a crisis. He called for more practical cooperation mechanisms, including information sharing, joint procurement and production cooperation.
Lee Hyuk, South Korea’s ambassador to Japan, said in congratulatory remarks that the establishment of shuttle diplomacy between the two countries’ leaders is driving deeper cooperation across a wide range of areas, including trade and investment, economic security, advanced technology, supply chain stability and the shaping of international rules. He said the key is ensuring those diplomatic gains translate into economic results felt on the ground.
* This article has been translated by AI.
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