The industry ministries of Korea and Japan will establish a regular communication channel to jointly respond to the global supply chain crisis. With energy supply instability mounting amid the aftermath of the Middle East war, the two countries agreed to prioritize cooperation in the liquefied natural gas (LNG) sector.
According to the Ministry of Trade, Industry and Resources on the 14th, Minister Kim Jung-kwan met with Japan's Minister of Economy, Trade and Industry Akazawa Ryosei on the sidelines of the "1st Indo-Pacific Energy Security Ministerial Meeting" held in Tokyo.
In the talks, the two sides agreed to launch the Korea-Japan industry and trade policy dialogue, a regular communication channel between the Ministry of Trade and Industry (MOTI) and Japan's Ministry of Economy, Trade and Industry. This channel will serve as a platform to review and manage a wide range of cooperation agendas, including trade cooperation, economic security, supply chains, steel, and mineral resources.
Before the meeting, the two sides agreed that Korea and Japan, as major importers of LNG, would strengthen cooperation to stabilize supply and demand. In this regard, Korea Gas Corporation (KOGAS) and Japanese energy corporations JERA signed a supply and demand cooperation agreement that includes an LNG swap (exchange).
KOGAS and JERA are the world's No. 1–2 LNG buyers. Through this agreement, they agreed to enhance cooperation for stable and efficient LNG supply-demand management. Earlier, the two companies signed a memorandum of understanding (MOU) in 2023 for cooperation in the LNG sector, and in June last year they successfully completed an LNG volume exchange project.
In addition, the two sides signed the Korea-Japan Supply Chain Partnership (SCPA) to strengthen mutual coordination during supply chain crises. They agreed to notify each other upon detecting signs of supply chain disruption and to convene an emergency meeting within five days upon request if an actual disruption occurs.
The two sides also agreed to refrain from measures that negatively affect each other's supply chains, to jointly explore and invest in critical minerals and cooperate on technology, and to share global market monitoring information.
Minister Kim said, "Amid increasing uncertainty such as the reorganization of the global trade order, heightened instability in energy and resources, and supply chain crises, coordination between Korea and Japan—countries in similar positions—is proceeding closely," adding, "On the foundation of 60 years since the normalization of diplomatic ties, we will continue to advance future-oriented and mutually beneficial industrial and trade cooperation between the two countries."
Akazawa, the economy, trade and industry minister, said, "I am very pleased that the strengthening of economic security cooperation discussed at the Asia-Pacific Economic Cooperation (APEC) meeting in October last year has been realized in the form of this partnership."
The bilateral meeting took place at the venue of the Indo-Pacific Energy Security Ministers and Business Forum (IPEM), co-hosted by the U.S. National Energy Dominance Council (NEDC) with cooperation from Japan's Ministry of Economy, Trade and Industry. The NEDC is a White House advisory body established by an executive order that President Donald Trump issued in February last year to expand U.S. energy dominance.
IPEM runs for two days from the 14th to the 15th. It consists of a closed-door energy security ministerial meeting and a public business forum. On the U.S. side, in addition to senior government officials, executives from organizations including Glenfarne AlaskaLNG, which leads the Alaska LNG project, Westinghouse, oil corporations Chevron, small modular reactor (SMR) developer X-energy, and energy corporations GE Vernova, spun off from GE, participated as presenters and panelists.
The energy security ministerial meeting is expected to discuss responses to Iran's blockade of the Strait of Hormuz. However, there are observations that in-depth discussion will be difficult, as U.S. Energy Secretary Chris Wright canceled a planned visit to Japan due to the worsening situation in the Middle East.