SK Group Chairman Chey Tae-won, who visited Washington, D.C., on Dec. 4 (local time) reiterated his proposal for the formation of a trilateral economic union, saying, “If South Korea and Japan develop into a single market-type economic partnership like the European Union, it will not only create tremendous synergies but contribute to peace in Northeast Asia.”
Chey made the remarks at the 2023 Trans-Pacific Dialogue (TPD) held by the Chey Institute for Advanced Studies in Washington.
“South Korea and Japan have enjoyed a lot of benefits from the World Trade Organization system, but such benefits are now disappearing,” Chey said. “China, which used to be a big market for South Korea and Japan, has turned into a strong competitor.”
“South Korea and Japan are faced with issues such as aging, shrinking populations, and low economic growth rates, and it is difficult for them to maintain their current economic status,” Chey added.
“Under these circumstances, cooperation between South Korea and Japan can hold the key to overcoming these problems,” Chey said. “We need an EU-like economic cooperation model.”
“The EU started as an economic union between France and Germany in industries such as steel and coal, but it has now grown into the world’s third-largest market,” Chey explained. “South Korea and Japan can also enjoy various synergies if they cooperate in areas such as energy and semiconductors.”
“If South Korea and Japan forge a strong economic partnership and grow into a large market, it will create opportunities for their neighbors, China and Russia, which will be able to eventually bring peace to all of Northeast Asia, including addressing the North Korean issue.”
Economic cooperation is also needed between South Korea, the United States and Japan, Chey said. “Both South Korea and Japan import a lot of energy, accounting for more than 30 percent of the world’s liquefied natural gas imports,” Chey said. “The three countries can exert price bargaining power against LNG and oil exporters, and can also gain synergies in the tourism industry and startup platforms.” Chey said that if the South Korea-Japan economic union cooperates with the United States, they will be able to build a US$30 trillion-plus economic bloc.
TPD is a collective intelligence platform that brings together former and current senior South Korean and Japanese officials, world-renowned scholars, think tanks, and business leaders to discuss international issues in the Northeast and Pacific regions and seek solutions for economic and security cooperation. It was first held by the Chey Institute for Advanced Studies in 2021. SK Chairman Chey Tae-won is the chairman of the board of the institute named after Chey Jong-hyun, the second chairman of SK Group and father of Chairman Chey. Chey Jong-hyun was a younger brother of SK Group founder Chey Jong-kun.