Chey Tae-won Says Joint Energy Purchasing and Storage Between Japan and Korea Would Create Strong Synergy

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\r\n[The Financial News] Chey Tae-won, chairman of SK Group, said on the 28th that "jointly purchasing and storing energy for use between Japan and Korea would create strong synergy," stressing the need to connect the two countries' power grids.
At the policy seminar hosted by the Korea-China Parliamentarians' Association at the National Assembly that day, Chey said, "The two countries must no longer merge a high-cost society and move toward a low-cost society," calling for the creation of a Japan-Korea economic community.
He particularly emphasized the need to build shared energy storage infrastructure, such as undersea cables and gas pipelines, between the two countries. Chey said this should serve as a hub for buying electricity from third countries, including China, that generate large amounts of power, using it domestically, and reselling any surplus through a power trading market.
However, he was lukewarm about the Korea-Japan Continental Shelf Joint Development Agreement, which is set to expire in 2028. The Japan–Korea Joint Development Zone (JDZ), a continental shelf area between the south of Jeju Island and the west of Kyushu, is seen as a region with the potential to contain vast oil and natural gas reserves. Although the two governments agreed to joint development in 1978, exploration has been suspended due to Japan's lack of cooperation.
Chey said the energy resources buried in the area are "small compared with the amount of energy used by Japan and Korea." Still, he added, "There is no reason not to do it. We will review it thoroughly."
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jiwon.song@fnnews.com Song Ji-won Reporter