57% of Domestic Companies Say "Korea-Japan Relations Should Improve and Economic Cooperation Is Necessary"

Survey of 207 Companies by the Korea Employers Federation

[Asia Economy Reporter Kiho Sung] A survey revealed that more than half of Korean companies hope for improved Korea-Japan relations and economic cooperation.

The Korea Employers Federation (KEF) announced on the 16th the results of a survey conducted by Global Research from the 27th of last month to the 2nd, targeting 207 companies nationwide with 30 or more employees, under the theme "Prospects and Challenges of Korea-Japan Relations and Economic Cooperation."

According to the survey results, 57.0% of respondents answered "Yes" regarding the necessity to resolve Korea-Japan conflicts and seek economic cooperation measures. "Neutral" responses accounted for 36.2%, and "No" responses were 6.8%.

In particular, the largest share of companies (53.4%) identified large-scale multilateral trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Indo-Pacific Economic Framework (IPEF) as key areas for economic cooperation between the two countries. This was followed by "exchange in new industries and advanced technologies" (35.8%), "response to global supply chain issues" (23.3%), and "preparation for external economic crises" (22.3%).

The survey also showed expectations that improved bilateral relations could positively impact investment sentiment and job creation. 37.7% of respondent companies said that if Korea-Japan relations improve, it could help increase corporate investment and employment in the future.

Regarding difficulties faced by companies due to the deterioration of Korea-Japan relations (multiple responses allowed), the results were as follows: "decreased sales" (14.5%), "supply disruptions of materials, parts, and equipment" (13.5%), "difficulty in personnel exchanges" (11.6%), "logistics disruptions such as export-import customs delays" (9.2%), "deterioration of brand and corporate image" (4.8%), and "reduced predictability of management and investment environment" (4.3%).

Policy tasks for improving Korea-Japan relations (multiple responses allowed) included "lifting Japan's export restrictions and resolving trade disputes" (35.9%), "revitalizing trade through participation in multilateral trade agreements" (32.5%), and "strengthening government-to-government dialogue and communication" (31.1%).

Jung-yeon Bae, head of KEF's International Cooperation Team, stated, "The deterioration of Korea-Japan relations has caused various difficulties in corporate activities such as decreased sales and export-import customs delays," adding, "However, with the attendance of the Japanese delegation at President Yoon's inauguration ceremony last May, companies have high expectations for the improvement of Korea-Japan relations."

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