Korea and Japan Establish Regular Communication Channel for Supply Chain Cooperation Amid Iran Conflict

Korea-Japan Industry and Trade Ministers' Meeting
Korea Gas Corporation and Japan's JERA Sign LNG Supply Cooperation Agreement

Kim Jeong-Kag, Minister of Trade, Industry and Energy. Photo by Yonhap News

The ministries in charge of industry in South Korea and Japan are establishing a regular communication channel to jointly respond to global supply chain crises. As energy supply uncertainties intensify in the wake of the U.S.-Iran conflict, the two countries are also prioritizing cooperation in the liquefied natural gas (LNG) sector.

On March 14, Kim Jeong-Kag, Minister of Trade, Industry and Energy, met with Ryosei Akazawa, Japan's Minister of Economy, Trade and Industry, on the sidelines of the "1st Indo-Pacific Energy Security Ministerial Meeting" held in Tokyo. During this meeting, the two sides agreed to launch the "Korea-Japan Dialogue on Industry and Trade Policy," a regular communication channel between the Ministry of Trade, Industry and Energy and Japan's Ministry of Economy, Trade and Industry. This platform will serve as a comprehensive gateway for reviewing and managing various cooperation agendas, including trade cooperation, economic security, supply chains, steel, and mineral resources.

Prior to the meeting, both sides reached a consensus on the importance of strengthening cooperation to ensure stable LNG supply, given that both Korea and Japan are major importers of LNG globally. Accordingly, Korea Gas Corporation and the Japanese energy company JERA signed a "Cooperation Agreement on LNG Supply" that includes provisions such as LNG swaps. The Ministry of Trade, Industry and Energy explained that this agreement is significant as it establishes a foundation for joint response between the two countries in the event of future LNG supply crises.

In addition, the two sides signed the "Korea-Japan Supply Chain Partnership (SCPA)" to strengthen mutual cooperation during supply chain crises. If signs of supply chain disruption are detected, the two countries will notify each other and, if an actual disruption occurs, plan to hold an emergency meeting within five days upon request.

Furthermore, both parties agreed to refrain from actions that could negatively impact each other's supply chains, to jointly explore and invest in key minerals, to cooperate on technologies, and to share information on global market monitoring. Minister Kim stated, "On the foundation of 60 years since the normalization of diplomatic relations, we will continue to advance forward-looking and mutually beneficial industrial and trade cooperation between Korea and Japan."

The Korea-Japan bilateral meeting took place at the venue of the "Indo-Pacific Energy Ministerial and Business Forum (IPEM)," co-hosted by the National Energy Dominance Council (NEDC)—established last February as a White House advisory body by President Donald Trump—and Japan's Ministry of Economy, Trade and Industry. IPEM, held over two days from March 14 to 15, consists of a closed-door energy security ministerial meeting and a public business forum.

The U.S. hosted this event under the banner of enhancing energy and critical mineral supply chain stability in cooperation with allied countries. However, there was also considerable emphasis on promoting sales and attracting investment for U.S. energy companies, including those in oil and gas. In fact, in addition to high-ranking government officials, executives from Glenfarne Alaska LNG, which leads the Alaska LNG project, Westinghouse, oil company Chevron, small modular reactor (SMR) developer X-energy, and GE Vernova—an energy company spun off from GE—participated as speakers and panelists. Related foreign media reports indicated that agreements worth at least $30 billion (approximately 45 trillion won) between U.S. companies and countries in the Asia-Pacific region are expected to be announced.

There are also expectations that the ministerial meeting on energy security may discuss responses to a potential blockade of the Strait of Hormuz by Iran. However, since U.S. Secretary of Energy Chris Light canceled his trip to Japan due to worsening conditions in the Middle East, it is anticipated that there will be limited in-depth discussion on the Strait of Hormuz issue.

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