South Korean, Japanese leaders vow to improve ties in face of global uncertainty

South Korean President Lee Jae Myung and Japan's new Prime Minister Sanae Takaichi met in their first summit Thursday, pledging to strengthen ties that have been frequently strained by their bitter wartime history.

Their meeting in South Korea came after both launched charm offensives toward US President Donald Trump, who visited their countries and pressed the two key US allies to complete their massive US investment pledges. Meeting with Takaichi ahead of the upcoming Asia-Pacific Economic Cooperation summit in Gyeongju, Lee said South Korea and Japan share common challenges in the face of “rapidly changing international dynamics and trade conditions” and that their future-oriented cooperation was more important than ever. Takaichi said trilateral cooperation between Tokyo, Seoul and Washington is becoming increasingly crucial “under the current strategic environment,” according to Lee's office. The two leaders agreed to continue their “shuttle diplomacy,” in which they take turns hosting summits, Lee's office said in a statement.

Takaichi described her first talks with Lee as “very enjoyable and meaningful'' and that she believes “we will welcome (Lee) in Japan next time.” The Oct. 22 election of Takaichi raised concern in Seoul about a potential deterioration in ties, as South Koreans view her right-wing views on history as hawkish. She has resisted acknowledging Japanese aggression in World War II and atrocities, and denied that coercion was used against Korean labourers and women held as sexual slaves for Japanese troops. But many experts say Seoul and Tokyo will more likely continue to tighten cooperation as they both struggle to defend their economic interests in the face of Trump's unilateral push to reset global trade. They also face other common challenges like supply chain vulnerabilities and North Korea's nuclear program. Lee's inauguration in June stoked worries in Japan, because he previously faced criticism that he tilted toward North Korea and China and away from the US and Japan. But since taking office, Lee, under his “pragmatic diplomacy,” has repeatedly promised to improve ties with Japan and the US and bolster trilateral Seoul-Tokyo-Washington security cooperation.

Both governments have pledged hundreds of billions of dollars in US business investments, but the South Koreans had spent weeks wrangling with their American counterparts over how Seoul's proposed USD 350 billion investment package would be structured and operated. Following a summit on Wednesday with Trump in Gyeongju, the two governments announced they had moved closer to finalising a trade deal. South Korean officials say they have agreed to provide USD 200 billion in direct US investments over a decade, along with another USD 150 billion — including loan guarantees — to help revive the US shipbuilding industry. In return, they say the Americans have agreed to lower tariffs on Korean vehicles and auto parts from 25 per cent to 15 per cent. Trump has also said the United States will share closely held technology to allow South Korea to build a nuclear-powered submarine.

Trump's visit to South Korea, which also included a summit with Chinese President Xi Jinping on Thursday, followed a trip to Japan, where he met Takaichi. Trump and Takaichi announced several major energy and technology projects in America to be funded by Japan, and Trump's team estimated it had secured up to USD 490 billion in Japanese investment as part of a trade deal.