Korea and Japan strengthen supply chain cooperation amid U.S.–Iran war, launch regular consultation body

According to The Financial News, the industry ministries of Korea and Japan have agreed to establish a new regular consultation channel to jointly respond to growing instability in global supply chains.
In particular, the two sides decided to prioritize cooperation in the field of Liquefied Natural Gas (LNG), given the heightened uncertainty over energy supplies caused by the war between the United States and the Islamic Republic of Iran (Iran).
Kim Jeong-kwan, Minister of Trade, Industry and Energy of the Republic of Korea, attended the Inaugural Indo-Pacific Energy Security Ministerial held in Tokyo, Japan, on the 14th and 15th, where he held a bilateral meeting with Akazawa Ryosei, vice minister at Japan's Ministry of Economy, Trade and Industry (METI). During the talks, the Ministry of Trade, Industry and Energy of the Republic of Korea and METI agreed to launch a regular consultation body called the "Japan-Korea Industrial and Trade Policy Dialogue."
This dialogue mechanism will serve as a communication channel to comprehensively review cooperation issues across a wide range of areas, including trade cooperation, economic security, supply chains, steel, and mineral resources.
Ahead of the meeting, the two governments shared the view that, as major global LNG importers, Korea and Japan need to strengthen cooperation to stabilize LNG supply and demand.
Accordingly, Korea Gas Corporation (KOGAS) and Japanese energy company JERA signed a "Memorandum of Understanding on LNG Supply Cooperation (MOU)," which includes LNG swap arrangements.
The Ministry of Trade, Industry and Energy of the Republic of Korea explained that this MOU is significant because it lays the groundwork for the two countries to respond jointly in the event of a future LNG supply crisis.
The two sides also concluded the "Korea-Japan Supply Chain Partnership," known as the Supply Chain Partnership Arrangement (SCPA), to enhance their response to supply chain crises.
Under this arrangement, if signs of supply chain disruption emerge, the two governments will share relevant information, and if an actual disruption occurs, they will convene an emergency meeting within five days upon request.
They also agreed to refrain from taking measures that could negatively affect each other's supply chains, and to pursue joint exploration and investment in critical minerals, technological cooperation, and the sharing of information on global markets.
Minister Kim stated, "At a time when uncertainty is growing due to the restructuring of the global trade order, instability in energy and resources, and supply chain crises, cooperation between Korea and Japan, which share similar positions, is crucial," adding, "Marking the 60th anniversary of the normalization of diplomatic relations, we will continue to expand future-oriented and mutually beneficial cooperation in industry and trade."
clean@fnnews.com Lee Jeong-hwa Reporter