Business lobby groups of Korea, Japan agree on structure of joint committee

Economy

Published: 11 May. 2023, 16:52 Updated: 11 May. 2023, 19:22

Business lobby groups of Korea, Japan agree on structure of joint committee

Federation of Korean Industries Acting Chairman Kim Byong-joon and Japan Business Federation Chairman Masakazu Tokura hold a press conference at the Japanese business lobby's building in Tokyo on Wednesday. [YONHAP]

Korea and Japan's main business lobby groups have agreed on the organizational structure of a joint committee as the next stride toward in creating "future partnership funds."

The Federation of Korean Industries (FKI) and Japan Business Federation, or Keidanren, have agreed on the member composition of a steering committee and an advisory committee for the future fund, the two lobbies announced during a joint press conference held at Keidanren's meeting hall in Tokyo on Wednesday.

FKI Acting Chairman Kim Byong-joon and Keidanren Chairman Masakazu Tokura will co-head the steering committee.

The members of the steering committee include Samyang Holdings Chairman Kim Yoon, Kolon Group Honorary Chairman Lee Woong-yeul; FKI Executive Director Bae Sang-geun; Mizuho Financial Group Senior Advisor Yasuhiro Sato; Hitachi Chairman Toshiaki Higashihara; and Keidanren Vice Chairman and President Masakazu Kubota.

The advisory committee will be co-headed by Kang Sung-jin, a professor of economics at Korea University, and Yukiko Fukagawa, a political science and economics professor at Waseda University.

"We have no special plans to include nor exclude Mitsubishi Heavy Industries and Nippon Steel," Tokura said when asked about the Japanese companies' involvement. "The requests [to join the fund] will be distributed in a non-discriminative manner, and companies can make contributions to the fund at their own discretion."

"Questions about the defendant companies' participation fade the future-oriented significance of the fund," added FKI acting chief Kim.

Mitsubishi Heavy Industries and Nippon Steel were ordered by the Korean Supreme Court in 2018 to compensate victims of forced labor during World War II, to which both refused to comply.

The business lobbies will jointly pursue projects to strengthen industrial cooperation and boost the bilateral exchange of the younger generation by means such as university exchange programs and internships.

Improving economic security through strengthening the semiconductor supply chain and securing energy resources; solidifying the industries' competitiveness in the global market; and responding to global challenges such as pandemics, were mentioned as some examples of methods to improve industrial ties.

"All projects are long-lasting and have no fixed dates for phased achievements," Kim said. "Establishing a supply chain for both countries through cooperation in semiconductors may be prioritized since the issue seems to be close at hand."

"We are at a concept-designing stage," Tokura said. "The steering committee may be convened around the Korea-Japanese industry cooperation forum scheduled for July."

"More details on the ways ahead for the fund and follow-up measures will be discussed in future committee meetings," an FKI source said.

The FKI and Keidanren agreed to establish the joint project fund in an effort to further restore Korea-Japan ties on March 16, ahead of a Korea-Japan summit held later that day. They pledged to contribute 1 billion won ($756,000) each to start the fund, in line with President Yoon Suk Yeol's call to settle the wartime forced labor compensation issues through third-party compensation.

BY KO SUK-HYUN, SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]