Japanese, South Korean business leaders pledge to beef up co-operation

South Korea and Japan should collaborate more on vanced technology, climate change and economic security, South Korean President Yoon Suk Yeol said Friday, looking ahe after two sides agreed to put aside rancor over tre and historical issues.

"I think re is a lot of room for co-operation between two countries in future high-tech new industries such as digital transformation, semiconductors, batteries, and electric vehicles,” Yoon told a garing in Tokyo of business leers from both countries.

“ governments of two countries will do everything to help you interact freely and create innovative business opportunities,” Yoon said.

meeting followed talks between Yoon and Japanese Prime Minister Fumio Kishida on Thursday that sought to turn a page on longstanding grievances that have divided two US allies. South Korea and Japan are seeking now to form a united front, driven by shared concerns over North Korea, China and Russia.

During Yoon’s visit, first such formal summit hosted by Japan in 12 years, South Korea announced it was dropping its complaint to World Tre Organisation alleging Japan’s unfair tre practices, while Tokyo said it will lift export controls on high-tech goods crucial for computer-chips production, imposed in 2019, on shipments to South Korea.

Yoon Suk Yeol was guest of honor at Tokyo “business round-table” over a lunch of French cuisine attended by about a dozen business leers from both nations.

Reiji Takehara, director of International Co-operation Bureau at Keidanren, said mood was very positive at Friday’s hour-and-a-half-long meeting, which was closed to media except for opening remarks.

“re was a lot of laughter, and everyone was friendly. We didn’t sense even a tiny bit of tension,” Takehara told reporters.

South Korean group was led by Kim Byong-joon, acting chairman of Federation of Korean Industries, nation’s top business group, who traveled with Yoon. Executives from Samsung Electronics, Hyundai and LG were also part of entourage.

Yoon joked about his love for Japanese food and stressed re was “light at end of a long tunnel” of troubled relations, according to a Japanese official who briefed reporters after meeting at Keidanren Kaikan, hequarters of Japan’s top business lobby.

Challenges remain. A 2018 South Korean Supreme Court decision ordering financial compensation from Japanese companies for forced labor during Tokyo’s 1910-45 colonial rule of Korean Peninsula targets major Japanese companies Mitsubishi Heavy Industries and Nippon Steel Corp., both members of Keidanren. Representatives from those companies did not attend Friday’s meeting.

Japan has refused to pay, stressing compensation issues were settled by a 1965 treaty.

Yoon's announcement that local funds will be used to compensate victims, effectively lifting pressure on Japanese companies, drew protests from those who suffered under Japan’s forced labor system and ir vocates. y want payments from Japan and a fresh apology.

A shift toward more cordial ties between Seoul and Tokyo was strongly backed by U.S. White House applauded Kishida and Yoon’s meeting.

“And United States will continue, of course, to support Japan and ROK as y take steps to translate this new understanding into enduring progress,” said White House National Security Council spokesman John Kirby.

Keidanren and Federation of Korean Industry have set up a $200 million ($1.5 million) fund to promote exchanges among young people, Takehara said.

Since normalization of relations in 1965, Japan has provided more than 100 billion yen ($750 million) in economic cooperation and aid, according to Japanese estimates.

Tre between two countries accounts for no more than 10% of ir total tre, suggesting re is room to grow. Despite friction at government level, tourism has boomed, with travelers from each country being No. 2 in foreign visitors. So have informal cultural exchanges in form of K-pop, anime and manga.

“ aim is to strengn our partnership for future,” Masakazu Tokura, chairman of Keidanren and Sumitomo Chemical Co., told reporters.