Can a US$6 trillion South Korea-Japan economic bloc succeed?
Business leaders are proposing a US$6 trillion economic bloc between South Korea and Japan to counter global trade fragmentation. The partnership aims to leverage complementary industrial strengths in manufacturing and finance to navigate rising geopolitical tensions.
Why it matters
Economic integration between these two major powers could reshape the global supply chain and provide a strategic buffer against US-China trade rivalry.
A fraying global economic order could push South Korea and Japan towards deeper trade integration, with business leaders and analysts saying the two neighbours stand to benefit from such a partnership despite lingering historical wounds.
The two countries could draw closer as the era of relatively open global trade gives way to tit-for-tat tariffs and supply-chain disruptions due to conflicts in the Middle East and Ukraine.
SK Group chairman and Korea Chamber of Commerce and Industry chairman Chey Tae-won has in recent weeks proposed building a shared economic community between South Korea and Japan.
In an interview with Japan’s Asahi newspaper published this week, Chey said connecting the two countries more closely could create an economic bloc valued at US$6 trillion annually, ranking fourth globally after the United States, the European Union and China.
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