SK Group Chairman Chey Tae-won on the 8th proposed that South Korea and Japan jointly purchase and stockpile energy as a first step toward an economic community between the two countries. On SK Group's investment plans in Japan, he said the group is "continuously discussing with Japanese partners how to build AI-related investments and systems."
In an interview published by Japan's Asahi Shimbun the same day, Chey said the energy issue is what the two countries should address first in building an economic community. Even a cost reduction of just 3% to 5%, achieved by jointly designing everything from energy purchasing to stockpiling and consumption, would have a very large effect, he argued.
Both countries rely heavily on crude oil imports from the Middle East. South Korea's dependence stands at about 70% and Japan's at around 90%, making energy supply a critical issue when the Iran war broke out in February this year. Citing refining, petrochemicals, energy-related industries, nuclear power, renewables and hydrogen as examples of areas for joint cooperation, Chey said that over the longer term, the two countries will need to connect their power transmission grids and gas pipelines.
Chey's push for a Korea-Japan economic community reflects deepening protectionism worldwide. Market size has also grown more important as U.S.-China confrontation splinters supply chains into blocs. Linking the two economies would create the world's fourth-largest economic bloc, worth $6 trillion (about 8,055 trillion won), in Chey's view. He also cited the cost pressures both countries share, including low birth rates and population aging.
Chey said SK Group, which he leads, has increased its investment in Japan and has been holding repeated meetings and discussions with Japanese business organizations for the past six to seven years. Cooperation is particularly active in advanced industries such as artificial intelligence and healthcare. He named NTT, Japan's largest telecommunications company, and chip equipment maker Tokyo Electron as partners in AI and semiconductors. In an earlier Asahi Shimbun interview, Chey also outlined plans to cooperate with Kioxia, the NAND flash memory maker in which SK hynix has invested.
"Cooperating in every field brings far greater benefits than not cooperating," Chey said, stressing that South Korea and Japan are complementary rather than competitors in semiconductors. He sees the two forming a single ecosystem, with South Korea strong in finished chips and Japan strong in materials, components and equipment. On the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the South Korean government has recently begun discussing in earnest, he said South Korea should join, adding that membership would allow cooperation with Japan to move into full gear.
