South Korea and Japan Launch Industrial and Trade Policy Dialogue... Institutionalize Supply Chain and LNG Cooperation

Signing of Supply Chain Partnership
Emergency Meeting Within Five Days in Case of Supply Chain Disruptions
Korea Gas Corporation and JERA Sign Agreement Including LNG Swaps

Kim Jeong-Kag, Minister of Trade, Industry and Energy, is taking a commemorative photo with Ryosei Akazawa, Director-General of Japan's Ministry of Economy, Trade and Industry, after signing the Korea-Japan Supply Chain Partnership (SCPA) in Tokyo, Japan, on the 14th. Ministry of Trade, Industry and Energy.

South Korea and Japan are institutionalizing cooperation in supply chains and energy security. The two countries have agreed to establish a new “Korea-Japan Industrial and Trade Policy Dialogue,” which will oversee their industrial and trade cooperation. They also signed a supply chain partnership agreement that mandates an emergency meeting within five days in the event of a supply chain disruption. Additionally, the two countries plan to promote cooperation between Korean and Japanese companies to address potential LNG supply crises, signaling strengthened industrial and energy collaboration between South Korea and Japan.

The Ministry of Trade, Industry and Energy announced on the 14th that Minister Kim Jeong-Kag held talks with Ryosei Akazawa, Minister of Economy, Trade and Industry of Japan, during the first Indo-Pacific Energy Security Ministerial Meeting in Tokyo, where they agreed on these cooperation measures.

First, the two countries agreed to launch a new regular consultative body, the “Korea-Japan Industrial and Trade Policy Dialogue,” which will oversee industrial and trade cooperation. This consultative body will regularly review key issues such as trade cooperation, economic security, supply chains, steel, and mineral resources, and discuss measures for further cooperation.

They also signed the “Korea-Japan Supply Chain Partnership Agreement (SCPA)” to address supply chain crises. Under this agreement, if there are signs of a supply chain disruption, the country detecting the issue will notify its counterpart, and if an actual disruption occurs, an emergency meeting must be held within five days of a request. Furthermore, both sides agreed to refrain from taking actions that could negatively impact each other’s supply chains, and to consult in advance if such measures are necessary.

The two countries also decided to strengthen cooperation in key minerals and resources. They plan to pursue joint exploration and investment in critical minerals, share information on global market monitoring, and expand cooperation in the energy sector, including LNG supply chain stability, eco-friendly technology development, and increased public-private partnerships.

In addition, Korea Gas Corporation and Japan’s JERA signed an agreement to cooperate on securing LNG supplies. Both parties will pursue measures including LNG swaps, aiming to establish a framework for joint response in the event of future LNG supply crises.

Minister Kim stated, “At a time when uncertainty is growing due to the reshuffling of the global trade order and increasing instability in energy and resources, cooperation between South Korea and Japan is crucial.” He added, “Marking the 60th anniversary of the normalization of diplomatic relations, we will continue to expand future-oriented and mutually beneficial industrial and trade cooperation.”

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