Korea, Japan business groups discuss ties in supply chain, carbon neutrality

The Korea-Japan industrial cooperation forum participants take a group photo in Seoul, on July 6. [Photo by Kim Ho-young]

South Korean and Japanese business lobby groups on Thursday agreed to join forces in advancing into third countries and achieving a stable supply chain and carbon neutrality.

The Federation of Korean Industries (FKI) announced that it held an industrial cooperation forum with the Japan Business Federation, or Keidanren, in Seoul.

The forum was attended by FKI Acting Chairman Kim Byong-joon, Samyang Holdings Corp. Chairman Kim Yoon, Shinhan Financial Group Co. Chairman Jin Ok-dong, Lotte Chemical Corp. Vice Chairman Kim Kyo-hyun, and Naver Corp. Chief Executive Officer Choi Soo-yeon.

Officials from Japan included Japan Business Federation Chairman Masakazu Tokura, Mizuho Financial Group Inc. Special Advisor Yasuhiro Sato, Hitachi Ltd. Chairman Toshiaki Higashihara, and NEC Corp. Special Advisor Nobuhiro Endo.

The participants agreed on the need for joint expansion into third countries.

“The financial industry is an area where the two countries can create synergy,” Jin said. “Korea, with its strong retail industry, and Japan, with its significant influence in the global financial market, can complement each other in overseas markets, such as Southeast Asia.”

Shinhan Financial Group is already cooperating with Mizuho Financial Group in Southeast Asia.

Additionally, Korean conglomerates prefer to use Japanese financial institutions for dollar and yen financing when expanding overseas.

“Shinhan signed a 50 billion yen ($347 million) private sector currency swap agreement with Mizuho in 2020,” Jin said, stressing that “even if there are political difficulties, trust should be maintained in the private sector.”

At the forum, some suggested that the two countries should share their know-how and join efforts to build a stable supply chain in the field of energy security, including future energy technologies.

There are also views that the two countries, which are already cooperating in key industries such as semiconductors and batteries, should join forces in the field of next-generation technologies.

After the forum, FKI and Japan Business Federation held the first steering committee meeting of the Korea-Japan Future Partnership Fund they created to support various cooperation projects.

The steering committee agreed to promote the exchange of future-generation talents, such as high school and university students, and the exchange of teachers.

The FKI, in the meantime, will elect a new chairman at a general meeting next month as Kim Byung-joon’s term as acting chairman comes to an end.

Earlier, the FKI passed a resolution during a board meeting on Tuesday to convene the general meeting and revise the articles of association.

The amendments include merging with the Korea Economic Research Institute (KERI) and changing the organization’s name.

Potential candidates are Lotte Group Chairman Shin Dong-bin and Poongsan Group Chairman Ryu Jin. The chairmen of the four major conglomerates in the country are also being mentioned as possible candidates.

If the FKI incorporates KERI, there is a high possibility that the four major conglomerates will rejoin the business lobby group.