New stage in strategic cooperation between Japan and South Korea

Family photo of the G7 Leaders' Summit in Kananaskis, Alberta, Canada June 17, 2025 - REUTERS/ AMBER BRACKEN
After six decades of diplomatic relations, South Korea and Japan are striving to build a new stage based on strategic cooperation 
  1. From historical enemies to strategic allies
  2. From conflict to dialogue: the evolution of ties between South Korea and Japan
  3. Trade partners despite political tensions
  4. The long-awaited G7 meeting

To mark the 60th anniversary of the normalisation of diplomatic relations, Japan and South Korea held a symbolic ceremony in Seoul this week. The event was organised by the Japanese Embassy, following an agreement between the foreign ministries of both countries to carry out bilateral activities in their respective territories. 

During the ceremony, South Korean President Lee Jae-myung expressed his desire to begin a new stage of cooperation and joint development. He stressed that both nations, as strategic allies, must work together to face the challenges arising in a constantly changing international environment. The president also highlighted shared achievements in multiple areas, such as the economy, culture and human exchange. In his message, Lee detailed that bilateral trade grew from ‘200 million dollars in 1965 to more than 70 billion in the last year, representing an increase of approximately 350 times.’

For his part, according to the Presidential Office, Japanese Prime Minister Shigeru Ishiba and Lee Jae-myung agreed earlier this month during a telephone conversation to strengthen dialogue between their administrations and promote ties between citizens, especially in this commemorative year. 

As part of the planned activities, the South Korean Embassy in Tokyo is expected to host a similar reception on Thursday 19 June, which will be attended by the leader of a South Korean parliamentary group. 

Japan's Prime Minister Shigeru Ishiba (L) and South Korea's President Lee Jae-myung (R) shake hands at the start of their bilateral meeting on the sidelines of the G7 Summit in Kananaskis, Alberta, 17 June 2025 - PHOTO/ SOCIAL NETWORKS

From historical enemies to strategic allies

More than 100 years have passed since Japan's annexation of Korea in 1910, but its effects are still alive in the Korean collective memory. What was a strategy of imperial expansion for Japan represented the loss of sovereignty, identity and national dignity for Korea. 

According to various historians, during the 35 years of occupation, Japan promoted a series of transformations on the peninsula. The colonial authorities introduced changes in administration, education and the economy, replacing traditional Korean structures with systems aligned with the Japanese model. These reforms ranged from the modernisation of infrastructure to the implementation of the Japanese language in public life. However, these changes were not always well received. Many Koreans interpreted the occupation as a loss of their sovereignty and cultural identity. The March 1st Movement of 1919 was a significant expression of this sentiment, although it was harshly suppressed. Even so, resistance continued, both inside and outside the country.

The period was also marked by episodes of tension, such as cultural censorship, forced labour and restrictions on civil liberties. Although there were moments of openness, such as in the 1920s, the intensification of control in the years leading up to World War II exacerbated tensions. The liberation of Korea in 1945 ended colonial rule, but did not completely heal the wounds of the past. 

However, diplomatic relations between Japan and South Korea were not formalised until 1965, when the two countries signed the ‘Basic Treaty’ on 22 June, after years of tensions stemming from the Japanese colonial period on the Korean peninsula between 1910 and 1945. The agreement, which came into force in December of that year, was the result of 14 years of failed negotiations by previous governments. The signing of the treaty was a strategic decision by then South Korean President Park Chung-hee, who sought to rebuild his country after the devastation of the Korean War, with Japan's economic support. As part of the pact, South Korea received 800 million dollars in aid and soft loans. While this rapprochement boosted South Korea's rapid economic development, large sections of society believe that the treaty did not fairly address the suffering caused during the occupation. Japan, for its part, maintains that all claims for reparations were settled by the agreement.

Former South Korean President Moon Jae-in - PHOTO/ JEON HEON-KYUN via REUTERS

From conflict to dialogue: the evolution of ties between South Korea and Japan

Although over the years several Japanese leaders expressed regret for the colonial past and the abuses committed during the war, these gestures were overshadowed by internal political tensions in both countries: while Japan leaned to the right, South Korea was divided between pro- and anti-Japanese positions. Bilateral relations hit rock bottom in the 2010s, known as the ‘lost decade,’ with no summits or high-level exchanges. The situation worsened during Moon Jae-in's term, following South Korean Supreme Court rulings in 2018 that required Japan to compensate victims of forced labour. Tokyo responded with restrictions on key exports to South Korean industry, to which Seoul replied by cancelling a bilateral military intelligence agreement. With the arrival in power of Yoon Suk Yeol, the landscape changed dramatically: in 2023, his government announced compensation for the victims without demanding Japanese participation, which allowed dialogue to resume. Yoon and then-Prime Minister Fumio Kishida met on multiple occasions, reviving bilateral diplomacy. This shift was welcomed by the United States and facilitated the launch of a new trilateral cooperation, consolidated at the Camp David summit in August 2023. His successor, Lee Jae-myung, despite his critical stance towards Japan, has promised to continue this approach, backing Yoon's solution to the forced labour dispute and committing to a ‘dual-track’ strategy that separates historical issues from future cooperation. 

South Korean citizens take part in a protest to denounce the government's plan to settle a dispute over compensation for victims of forced labour, at the National Assembly in Seoul, South Korea, 7 March 2023. Banners read ‘Yoon Suk Yoel's humiliating diplomacy is OUT!’ and ‘Withdraw government settlement for victims of forced labour under the 1910-1945 Japanese colonial occupation’ - REUTERS/ KIM HONG-JI

Trade partners despite political tensions

Since 2001, South Korea has remained Japan's third largest trading partner, despite political tensions stemming from historical disputes and economic measures such as export restrictions. For example, in 2018, bilateral trade reached 9.3 trillion yen, behind only China and the United States. 

Among the main goods that South Korea exports to its neighbour are semiconductors, machinery, chemical and electronic materials, among others. On the other hand, Japan imports refined oil, steel plates, auto parts and electronic products, and exports machinery, semiconductor devices and integrated circuits. 

According to the Observatory of Economic Complexity (OEC), in March 2025, Japan exported 691 billion yen and imported 367 billion yen. Exports grew by 11.4% year-on-year, driven by semiconductor manufacturing machinery and basic products, while imports increased by 2.55%, with refined petroleum and high-tech equipment standing out. In addition, bilateral travel has also been significant for the economies of both countries: in 2024, more than 11 million people travelled between the two countries. Likewise, cultural phenomena such as Korean dramas, K-pop, Japanese comics (manga) and anime help to consolidate cultural influence between the two nations, maintaining closer social and commercial ties, especially among the younger generations.

Google startup campus in Seoul's Gangnam district - REUTERS/ THOMAS PETER

The long-awaited G7 meeting

On 17 June, during the G7 summit in Kananaskis, Canada, South Korean President Lee Jae-myung and Japanese Prime Minister Shigeru Ishiba held their first bilateral meeting, where they reaffirmed their willingness to strengthen ties between the two countries. They emphasised the strategic importance of their cooperation, especially in the current international context marked by trade tensions and geopolitical challenges. They also agreed that South Korea and Japan, as close and interdependent neighbours, must move towards a more constructive relationship, overcoming differences through mutual respect. 'In our country, Japan and Korea are often described as close but distant neighbours. As neighbours sharing the same backyard, we cannot separate ourselves. Although there are minor differences and disagreements, I hope that Korea and Japan will overcome them to develop a relationship based on cooperation and mutual support,' said President Lee. 

Both leaders also insisted on the need to strengthen the trilateral axis with the United States, particularly in the face of issues such as the North Korean threat. ‘In the current strategic environment, the importance of relations between Japan and South Korea and cooperation between Japan, the United States and South Korea has not changed at all; on the contrary, it has become even more important,’ Prime Minister Shigeru Ishiba added at a press conference. 

Finally, Lee recalled his previous telephone call with Ishiba and welcomed the opportunity to meet in person, while the Japanese prime minister highlighted the significance of the 60th anniversary of the normalisation of diplomatic relations, expressing his desire to intensify exchanges between governments, businesses and citizens. Finally, the leaders agreed to resume frequent bilateral visits and maintain active dialogue between their administrations to promote lasting cooperation based on trust. 

‘I sincerely hope that, with the 60th anniversary as a milestone, exchanges between governments, businesses and citizens will increase and that cooperation and partnership between Korea and Japan will be strengthened for the benefit of our region and the world,’ Shigeru Ishiba said, according to the Korean presidential office.