Korea and Japan to Strengthen Cooperation on Crude Oil, LNG, and Key Industrial Supply Chains... Launch of 'Industry and Trade Policy Dialogue'

Follow-up Measures After the Korea-Japan Summit in Andong

Expanding Cooperation on Energy Security and Supply Chain Resilience

Pursuing Crude Oil and Petroleum Product Swaps, LNG Supply Cooperation, and Regional Strategic Reserve Initiatives

Kim Jungkwan, Minister of Trade, Industry and Energy (left), held a virtual meeting on the 18th at the video conference room in Yeoksam-dong, Gangnam-gu, Seoul, with Ryosei Akazawa, Vice Minister of Economy, Trade and Industry of Japan, to discuss cooperation plans on supply chain and resource security, key agendas between the two countries. Ministry of Trade, Industry and Energy

South Korea and Japan have agreed to significantly expand cooperation to strengthen energy security and supply chain resilience. The two countries will advance their collaboration not only in securing crude oil and liquefied natural gas (LNG) supplies, but also in enhancing crisis response systems for key industrial supply chains. In addition, they will launch a high-level consultative body, the “Korea-Japan Industry and Trade Policy Dialogue.”

The Ministry of Trade, Industry and Energy and Japan’s Ministry of Economy, Trade and Industry announced this joint cooperation plan on May 19. This initiative is being pursued as a follow-up measure to the summit meeting between President Lee Jaemyung and Japanese Prime Minister Sanae Takaichi held earlier that day in Andong, North Gyeongsang Province.

The two countries share the view that cooperation to enhance energy security and supply chain resilience is essential amid increasing geopolitical risks and growing instability in global supply chains.

First, in the area of energy security, they agreed to strengthen cooperation for crude oil and petroleum products. Both countries are importers of crude oil and have competitive refining and petrochemical industries. Based on these commonalities, they will expand public-private partnerships in the event of emergencies.

Specifically, in the event of a crisis, the two countries will consider a swap and mutual supply system for crude oil and petroleum products, and will cooperate to refrain from imposing unnecessary export restrictions. They also plan to pursue joint efforts in crude oil procurement and transportation, including strengthening cooperation with resource-producing countries.

In the LNG sector, as the world’s third- and second-largest LNG importers, South Korea and Japan will continue to expand their collaboration on LNG supply. In particular, the governments of both countries will deepen cooperation based on the “LNG Supply Cooperation Agreement” signed last March in Tokyo between Korea Gas Corporation and JERA, Japan’s largest power generation company affiliate.

In the supply chain sector, the two countries will strengthen cooperation in key industrial supply chains based on the “Korea-Japan Supply Chain Partnership Arrangement” signed last March by Minister Kim Jungkwan and Japan’s Minister Ryosei Akazawa. Both sides plan to upgrade their crisis response mechanisms and expand the scope of cooperation to ensure supply chain stability.

Furthermore, the two countries will seek opportunities for regional cooperation, including in the area of reserves, through Japan’s proposed “POWERR Asia” (Partnership for Strengthening Asian Energy and Resource Supply Chains) initiative.

To ensure concrete implementation of these cooperative measures, the two sides will launch the “Korea-Japan Industry and Trade Policy Dialogue,” involving senior officials from the Ministry of Trade, Industry and Energy and Japan’s Ministry of Economy, Trade and Industry. They also plan to establish regular intergovernmental consultations.

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