[Q&A] Establishment of Korea-Japan Business Fund Management Committee... "Each Japanese Defendant Company in Forced Labor Case to Decide Participation" (Comprehensive)

Kim Byung-joon "Door Not Closed to Participation in Fund Projects of 4 Major Groups"
Tokura "No Intention to Either Include or Exclude Mitsubishi Heavy Industries and Nippon Steel"

On the 10th, the leading business organizations of South Korea and Japan announced that they have agreed to establish a joint steering committee and advisory committee for the Korea-Japan and Japan-Korea Future Partnership Fund project.

The Federation of Korean Industries (FKI) and Keidanren (Japan Business Federation) held a joint press conference at the Keidanren Hall in Tokyo that afternoon to announce this.

FKI and Keidanren agreed to contribute 1 billion KRW and 100 million JPY (approximately 1 billion KRW) respectively. Regarding the participation of companies sued for forced labor compensation during the Japanese colonial period, such as Mitsubishi Heavy Industries and Nippon Steel, the stance was that participation is a matter for each individual company to decide.

They agreed not only on the fund’s operational policy but also to jointly respond to industrial risks. They shared the view that close cooperation is necessary on semiconductor supply chains and securing resources for secondary batteries.

The main points were summarized in a Q&A format.

Kim Byung-joon, Acting Chairman of the Federation of Korean Industries (left), and Tokura Masakazu, Chairman of Keidanren (Japan Business Federation), explaining the management direction of the Future Partnership Fund at a press conference held on the 10th at the Keidanren Hall in Tokyo.
[Image source=Yonhap News]

-What is the scale of the operating fund?

▲(Masakazu Tokura, Chairman of Keidanren) We announced last March that we would start the fund project with contributions of 100 million JPY from Japan and 1 billion KRW from Korea. The amount can be increased depending on the project. We think of it as 'starting small and growing big.' We want to recruit many companies.

-Which areas will you particularly focus on under the 'strengthening industrial cooperation' aspect of the fund project?

▲(Chairman Tokura) Regarding the semiconductor supply chain, Japan’s strengths lie in materials, parts, and equipment, while Korea has design and mass production capabilities. Cooperation in this area is very meaningful. Another area is resource and energy security. I believe both countries share the same awareness of issues related to resources, including rare earth elements.

▲(Byung-joon Kim, Acting Chairman of FKI) In the semiconductor sector, the two countries can cooperate to form a pillar of the supply chain. We can jointly respond to moves toward nationalization of rare resources in China, such as those for secondary batteries.

-Will companies sued for forced labor compensation in Japan (Mitsubishi Heavy Industries, Nippon Steel) participate?

▲(Chairman Tokura) We do not think that companies requested to participate, such as Mitsubishi Heavy Industries and Nippon Steel, must be included or excluded. Whether to join the project is up to each individual company.

▲(Acting Chairman Kim) The fund is truly a future-oriented fund. The more questions are repeated, the more the fund’s meaning diminishes. We would appreciate it if people could think a lot about the 'future significance' of the fund operation created by the two organizations.

-What is the Korean response to the concretization of the fund (project) details?

▲(Acting Chairman Kim) Although there may be some cold reactions in various parts of Korea to President Yoon’s visit to Japan and Prime Minister Kishida’s visit to Korea, I think these visits have contributed significantly to changing perceptions of the bilateral relationship. The Korean government and business community feel that Korea-Japan cooperation is a very important task. We will do whatever it takes if cooperation can enhance the competitiveness of both countries.

-When will the project start? When will specific projects be selected?

▲(Chairman Tokura) It is difficult to say when the project will start. We are currently in the stage of creating the concept. We want to start discussions immediately. We plan to convene the steering committee around July 6, when the 'Korea-Japan Industrial Cooperation Forum' will be held in Seoul, to discuss the fund’s operation.

-Will the 'Big 4 Groups' such as Samsung, which withdrew from FKI, participate in the fund project?

▲(Acting Chairman Kim) It remains to be seen which companies will voluntarily participate, but if it is a matter of enhancing the industrial and economic competitiveness of both countries, there is no reason not to participate regardless of FKI membership. The Big 4 Groups willingly attended the recent Korea-Japan and Korea-US summits. It is a matter for the entire country. Similarly, all projects of the fund are for the whole Republic of Korea, so I want to say the door is not closed.

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