SEOUL: As tensions in the region and slowing growth pressure them to increase cooperation and mend strained relations, Japan and South Korea held their first meeting of financial leaders in seven years on Tuesday and decided to resume routine communication.
Prior to the Japanese Prime Minister Fumio Kishida's anticipated visit to South Korea next week for talks with President Yoon Suk Yeol, the two countries' financial negotiations have resumed.
It also happened as Asian policymakers discussed regional economic concerns and strategies to strengthen buffers against various shocks at the annual Asian Development Bank (ADB) summit taking place this week in the South Korean city of Incheon.
At the meeting with his South Korean counterpart Choo Kyung-ho, Japanese Finance Minister Shunichi Suzuki said, "Japan and South Korea are important neighbours that must cooperate to address various challenges surrounding the global economy, as well as the regional and international community."
"As for geopolitical issues, we're dealing with things like Russia's invasion of Ukraine and North Korea's development of nuclear missiles. Japan views them as unacceptable, and the two nations must work together to address them, he added. The two nations can improve their business and public cooperation in high tech sectors including semiconductors and batteries.
Following the bilateral meeting, Japan and South Korea will restart their regular financial talk at "an appropriate timing," which is likely to take place once a year, he siad.
Choo is expected to visit Japan this year for another meeting with Suzuki, South Korea's finance ministry said.
According to ADB predictions, developing Asia will see robust economic growth of 4.8% in 2023, faster than the region's 4.2% growth in 2022 because of China's recovery. This would happen despite advanced countries' decreasing growth.
However, a number of risks taint the region's economic prospects."We have witnessed a recent downturn in economic cooperation, particularly in terms of trade in products and services," the finance ministers of the three nations said in a statement following their trilateral meeting on Tuesday. "Despite the tight economic ties among China, Japan, and Korea.
The head of the People's Bank of China and the finance minister of China both sent representatives rather than being present at the trilateral conference.
