Japan Abe family's... Government Reviewing Solutions for Trade Conflicts

"May Dialogue Request and June WTO Complaint Announcement: No Emergency Briefing Planned"
Careful Approach After Reviewing Reactions from Japan's Next Prime Minister and Domestic Responses
Experts Say "Government Response Appropriate... Avoid Rushed 'Top-Down' Handling"

Japanese Prime Minister Shinzo Abe entering the Prime Minister's residence in Tokyo on the 28th. Japanese media unanimously reported on the same day that Prime Minister Abe announced his resignation due to health issues. (Image source=Reuters Yonhap News)

[Asia Economy Reporter Moon Chaeseok] As Japanese media reported that Prime Minister Shinzo Abe (安倍晋三) has decided to resign, our government stated that it will carefully consider the selection of his successor before responding. Currently, Defense Minister Taro Kono (河野太郞), Chief Cabinet Secretary Yoshihide Suga (菅義偉), and former LDP Secretary-General Shigeru Ishiba (石破茂) are mentioned as potential successors. Experts say that rather than rushing to address major issues such as filing a World Trade Organization (WTO) complaint, it is appropriate for the government to first review Japan’s reaction. However, the consensus is that even if the next prime minister comes from the opposition, the possibility of rapid rapprochement in Korea-Japan diplomatic and trade relations is extremely low.

According to Japanese media reports on the 28th, Prime Minister Abe is scheduled to hold a press conference at 5 p.m. at the Prime Minister’s Official Residence regarding his resignation. He is expected to explain his position. Earlier, on the 17th, Abe visited a hospital and received long-term treatment. Japanese government officials said he decided to resign to avoid his chronic illness interfering with state affairs.

The emergence of a major variable in Japanese politics with the prime minister’s replacement has drawn attention to our government’s future trade response. Currently, Korea and Japan have been engaged in sharp conflicts over detailed diplomatic and trade issues such as WTO trade disputes, the election of Yoo Myung-hee as WTO Director-General, and the sale of assets of companies involved in forced labor during wartime. In the long term, negotiation issues such as the Korea-China-Japan FTA and Korea’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) remain.

A government official said, “First, we need to see who Abe’s successor will be, then check Japan’s reaction, and adjust our response strategy accordingly.” He added, “At present, there are no plans for separate briefings or internal meetings.” Earlier, on May 12, Lee Ho-hyun, Trade Policy Officer at the Ministry of Trade, Industry and Energy, which is in charge of trade, briefed Japan requesting the prompt withdrawal of export regulations by June. When Japan did not provide a clear response, on June 2, Na Seung-sik, Director of Trade and Investment at the Ministry, said, “We will resume the WTO complaint procedure against Japan.”

Trade experts believe that even if former LDP Secretary-General Ishiba from the opposition becomes prime minister, trade conflicts between the two countries will not subside anytime soon. They advise that instead of trying to extract specific responses from Japan on particular issues such as the WTO complaint, the Director-General election, and the sale of assets of wartime companies, it is better to maintain a leader-level gesture of dialogue while continuing consultations among working-level officials.

Kim Heung-jong, President of the Korea Institute for International Economic Policy, said in a phone interview with Asia Economy, “The order is to send a basic message that ‘We are waiting for Japan’s dialogue and want to expand a future-oriented friendly and neighborly relationship,’ then observe Japan’s reaction.” He assessed, “Rather than solving everything at once through a ‘top-down’ approach, responding to each issue in a ‘bottom-up’ manner allows us to detect internal changes in Japan. The government’s current response is appropriate.”

Professor Jung In-gyo of Inha University’s Department of International Trade said, “It is realistically difficult to expect Korea-Japan relations to ease suddenly just because the prime minister changes, especially since Japan’s domestic political situation is a major variable.” He added, “Behind the conflicts between the two countries, there has been some emotional tension between President Moon Jae-in and Prime Minister Abe, so a change in Japan’s leadership could be an opportunity to improve Korea-Japan relations.” Professor Jung emphasized, “The government should make good use of this opportunity.”

Earlier, on the 15th, President Moon said in his speech on the 75th Liberation Day, “The government is always ready to sit down with the Japanese government,” and “Joint efforts by Japan and Korea to respect the human rights of individuals will become a bridge of friendship and future cooperation between the peoples of the two countries.” This was interpreted as a proposal to find a starting point for dialogue based on a shared consensus on the universal value of respecting victims’ human rights as a solution to the forced labor victim issue. Compared to last year’s Liberation Day speech, delivered shortly after Japan’s export restrictions, which included strong messages such as “a country no one can shake” and “a responsible economic power,” this is seen as a somewhat softened gesture.

This content was produced with the assistance of AI translation services.