Biz leaders from Korea, Japan vow efforts for Seoul to join CPTPP

Business leaders from Korea and Japan pose during the 32nd Korea-Japan Business Summit at the Japan Business Federation's headquarters in Tokyo, Friday. Courtesy of Federation of Korean Industries

The Federation of Korean Industries (FKI) and the Japan Business Federation, known as Keidanren, pledged Friday to coordinate efforts for the Korean government to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

During the 32nd Korea-Japan Business Summit in Tokyo, the two business associations agreed that Korea's CPTPP participation is crucial to responding to unstable global trade conditions triggered by U.S. protectionism and supply chain disruptions.

“The participants shared the view that Korea’s membership would help Japan and other existing members stabilize supply chains and promote cooperation in the trade of advanced materials,” FKI said in a press release.

The CPTPP, a multinational trade pact led by Japan, serves as a high-standard free trade agreement among member nations. It currently consists of 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam.

Although both the liberal Moon Jae-in and conservative Yoon Suk Yeol administrations pursued CPTPP membership, the process stalled due to strong opposition from Korean farmers and those working in fishing.

Last month, however, the Lee Jae Myung administration announced it would resume efforts to join the CPTPP, stressing the need to diversify export markets and reduce dependence on U.S. and Chinese markets.

“Facing uncertainties in global conditions, Korea and Japan, with their similar economic and industrial structures, should present a united front on supply chain realignment and international rules,” FKI Chairman Ryu Jin said at the summit.

Japan Business Federation Chairman Yoshinobu Tsutsui highlighted the need for World Trade Organization reform and reinforced economic partnerships, including the CPTPP.

Participants from both countries also called for bilateral cooperation in the hydrogen industry through joint demonstration projects for key infrastructure and joint training of operators and technicians.

They agreed on collaboration in artificial intelligence and digital technologies to address challenges such as aging populations, disasters, the digital divide, labor shortages and supply chain instability.

In the culture sector, proposals were made for the joint distribution of content produced by both countries through global streaming platforms.

As travel between Korea and Japan has increased, there has been a suggestion to improve traveler convenience by mutually opening their automated immigration systems, allowing each other's citizens to use the faster, automated entry systems available to locals.