Korea-Japan Cooperation at a Time of Increasing Economic Uncertainty

Forging economic cooperation between Korea and Japan has been stumbled by the history of the two countries. Cooperation in economic sectors between Korea and Japan is essential for their economy to grow. To do so, the two governments should try to eliminate obstacles to business activities, while revitalizing their economy by attracting global capital and technology. First, all impediments to the transfer of capital and technology should be identified and removed, including relaxation of regulations that suppress corporate activity and elimination of inefficiency in the public sector. Then, Korea and Japan can contemplate the cooperation on various economic issues, including coordinating policies between the two countries to maintain a proper exchange ratio of won and yen, establishing a regional credit guarantee organization, and establishing technical and functional training centers. Further, they can jointly promote more ambitious projects and drive technical innovation, by utilizing ODA funds through mutual consultation. Such cooperation between the two countries is necessary to seize opportunities from global marketplace. Although both Korean and Japanese are experiencing difficulties in economic situation these days, the significance and gains of cooperation between Korea and Japan are still great.