Issue Institutionalizing Korea-Japan supply chain and economic security cooperation

Summary

In the economic field the report puts supply chain cooperation first, noting that both countries depend heavily on imports of energy, food, minerals and other raw materials and are therefore very similar in supply chain vulnerability. Shared liberal democratic and market values, similar stages of economic development and geographic proximity also favor cooperation. It proposes institutionalizing economic security and industrial cooperation at government level first, through a consultative body and a Korea-Japan supply chain stabilization fund, and in the longer term pursuing a legally binding trade agreement. For food, energy and minerals, it calls for joint development and procurement in third countries, joint stockpiling with shared use in crises and joint agricultural investment abroad to expand grain production and procurement. On semiconductors, Korea should expand foundry investment in Japan to provide a stable supply of the chips Japan needs while attracting Japanese materials, parts and equipment firms to invest in Korea, strengthening both domestic supply chains.