South Korea and Japan must now focus more on the problems they need to solve together rather than their differences. This is particularly important as both countries face increasingly similar challenges, including low birth rates, aging populations, regional decline, labor shortages, and economic stagnation.
The first meeting of the Korea-Japan Low Birth Rate Response Exchange Committee, held on August 30 in Sendai, Japan, highlights this reality. Business leaders from both countries recognize that low birth rates are not merely a welfare issue but a structural challenge that affects the sustainability of their economies and societies. Notably, Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry, proposed a level of cooperation akin to an economic community between the two nations.
The key is to expand the economic activity space in an era of declining populations. It is essential to connect the markets of both countries and utilize each other's technology, capital, and talent more efficiently. This means that the issue of low birth rates should not be left solely to birth encouragement policies but should also be addressed from an economic perspective focused on growth and job creation.
South Korea and Japan's situations are remarkably similar. The number of births is decreasing while the elderly population is rapidly increasing. Young people are delaying marriage and childbirth due to high housing and education costs, as well as unstable job prospects. In rural areas, the outflow of young people and industrial hollowing are further diminishing vitality.
These are challenges that one country cannot solve alone. Expanding the scope of markets and talent is one of the solutions. In an era of shrinking markets, it is crucial to connect those markets, and as talent becomes scarce, pathways for talent exchange must be broadened.
There are many areas where the two countries can collaborate, including semiconductors, AI, batteries, robotics, energy, supply chains, and human resource exchange, as well as addressing regional decline. South Korea has strengths in manufacturing and IT, while Japan excels in materials, components, equipment, and foundational technologies, including robotics. By connecting each other's strengths, there is potential to create new businesses and jobs.
In particular, it is essential to lower the barriers to talent exchange. South Korean youth should be able to study and work in Japan, and Japanese youth should have opportunities to seek new prospects in South Korea. Improvements in visa and qualification recognition, as well as expanding joint projects among universities, businesses, and research institutions in both countries, are necessary. This could provide a new talent pool for companies struggling with labor shortages and open up a broader job market for young people.
Regional cooperation is also a critical area. Both countries are facing similar challenges of declining populations and industrial hollowing in rural areas. There is a need for local governments, universities, and businesses to collaborate in developing region-specific industries and creating job opportunities for young people.
This is not to suggest ignoring historical issues. Principles regarding history must be upheld. However, viewing all current issues solely through the lens of past conflicts is not a constructive approach for the future. It is entirely possible to remember the past while cooperating for the future.
Time is running out for both countries to overcome their shared challenges. The consequences of low birth rates will manifest decades from now, but the time to start addressing them is now. If changes in systems and industries lag behind the pace of population decline, the burdens on both countries will inevitably increase.
A new framework for Korea-Japan relations is needed. Instead of remaining focused on past differences, both nations should seek common ground for the future. The shared challenge of low birth rates should serve as a new starting point for economic cooperation between South Korea and Japan, prompting both governments and business sectors to take more proactive steps.
* This article has been translated by AI.
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