Japan, South Korea hold first finance leaders’ meeting in seven years

Japan and South Korea held their first bilateral finance leaders’ assembly in seven years on Tuesday, an indication relations between the 2 are thawing as they confront shared challenges from geopolitical tensions and slowing financial progress.

The 2 nations agreed to renew common finance dialogue “at an acceptable timing,” Japanese Finance Minister Shunichi Suzuki instructed reporters after the assembly.

The dialogue will possible be held on an annual foundation, Suzuki mentioned.

The resumption of bilateral monetary discussions comes forward of Japanese Prime Minister Fumio Kishida’s deliberate go to to South Korea subsequent week for talks with President Yoon Suk Yeol.

“Japan and South Korea are essential neighbors that should cooperate to deal with varied challenges surrounding the worldwide and economic system, in addition to the regional and worldwide group,” Suzuki mentioned on the assembly along with his South Korean counterpart Choo Kyung-ho.

“As for geo-political challenges, we’re experiencing incidents like North Korea’s nuclear missile growth and Russia’s invasion of Ukraine. Japan sees these as unacceptable, and one thing the 2 nations should deal with collectively,” he mentioned.

Choo mentioned the 2 nations can strengthen non-public and authorities partnerships in high-technology industries similar to semiconductors and batteries.

Within the assembly held on the sidelines of the Asian Improvement Financial institution gathering this week, Choo additionally urged Japan to swiftly restore South Korea again to a “white listing” of nations with fast-track commerce standing.

Choo is anticipated to go to Japan this 12 months for an additional assembly with Suzuki, South Korea’s finance ministry mentioned.

Common annual dialogue between the 2 nations’ finance ministers has been suspended since 2016 because of disputes over wartime historical past.

However ties between the U.S. allies have improved in latest months within the face of North Korea’s frequent missile launches and China’s extra muscular function on the worldwide stage.

In a landmark summit in Tokyo final month, Kishida and Yoon agreed to place apart their tough shared historical past and pledged to work collectively to counter regional safety challenges.

Suzuki mentioned he hoped Japan and South Korea can proceed with bilateral monetary dialogue and that doing so would contribute to enhancing relations between the 2 nations.