WASHINGTON - Chey Tae-won, Chairman of SK Group, has proposed the formation of an economic coalition between South Korea and Japan. Speaking at the Trans-Pacific Dialogue in Washington on Monday, Chey highlighted the complementary nature of the two countries' economies, particularly in sectors like semiconductors and batteries, and their potential to create synergistic effects.
According to Yonhap News Agency, Chey, the evolving global economic environment, characterized by China's emergence as a strong competitor across the entire value chain, necessitates this coalition. He noted China's transition from a major market for consumer products to a formidable competitor in areas including energy, semiconductors, and electric vehicle batteries.
Chey discussed the benefits both countries have derived from the World Trade Organization system, but he emphasized that current market divisions and economic security tensions require a new approach. An economic coalition, he argued, could address shared challenges such as low growth rates, aging populations, and the potential decline in global stature for both South Korea and Japan.
The chairman suggested looking to the European Union (EU) as a model, pointing out how it evolved from a small economic group into one of the world's largest markets. He believes that a similar coalition between South Korea and Japan could yield significant benefits, especially in energy, semiconductors, and batteries.
Additionally, Chey proposed that a robust economic coalition in Northeast Asia could contribute to easing regional security tensions, including those related to North Korea. He suggested that such a coalition, potentially including China and other regional players, could offer an alternative approach to resolving issues with North Korea, acknowledging that this process could take more than a decade.