- Japan and South Korea conducted their bilateral finance leaders' meeting after seven years
- South Korea's finance minister stated that the two nations might expand their collaboration
- Choo Kyung-ho said cooperation between South Korea, Japan, and China has become more significant
On Tuesday, Japan and South Korea conducted their first bilateral finance leaders' meeting in seven years, indicating that relations between the two countries are improving as they face common concerns such as geopolitical tensions and declining economic growth.
The two nations agreed to begin a regular financial conversation "at an appropriate timing," Japanese Finance Minister Shunichi Suzuki told reporters following the meeting. Suzuki predicted that the discussion would take place on a yearly basis.
South Korea, Japan Finance Ministers Meet
The resumption of bilateral finance negotiations comes ahead of Japanese Prime Minister Fumio Kishida's upcoming visit to South Korea for meetings with President Yoon Suk Yeol next week.
Due to disagreements over wartime history, the regular yearly discussion between the two nations' finance ministers has been discontinued since 2016, as per CNBC. Despite North Korea's frequent missile launches and China's more assertive role on the global stage, relations between US allies have improved in recent months.
Kishida and Yoon decided to set aside their rough shared past and work together to address regional security concerns at a historic conference in Tokyo last month. Suzuki expressed his hope that Japan and South Korea can continue their bilateral financial dialogue, which would help to improve relations between the two nations.
The resumption of bilateral finance negotiations comes ahead of Japanese Prime Minister Fumio Kishida's upcoming visit to South Korea for meetings with President Yoon Suk Yeol next week.
It also came as Asian policymakers gathered this week in the South Korean city of Incheon for the annual Asian Development Bank (ADB) summit to address regional economic concerns and strategies to strengthen buffers against various shocks.
Asian Economy
Choo Kyung-ho, South Korea's counterpart, stated that the two nations might expand corporate and public sector collaboration in high-tech areas such as semiconductors and batteries. Japan and South Korea will begin regular financial discussions at "an appropriate timing," Suzuki told reporters following the bilateral meeting. Choo will likely return to Japan this year for another meeting with Suzuki.
According to ADB forecasts, despite decreasing growth in advanced economies, emerging Asia is predicted to have robust economic growth of 4.8% in 2023, stronger than 4.2% growth in 2022, primarily to China's resurgence. However, a number of risks cloud the region's economic outlook, as per Reuters.
Moreover, South Korea's finance minister stated on Tuesday that trilateral cooperation between South Korea, Japan, and China has grown in significance as the global economy approaches a tipping point. Per US News, Choo Kyung-ho stated that such cooperation would benefit not just the three nations, which account for more than 20% of the global economy, but also the Asian region and the rest of the world.
