SK chief says S. Korea, Japan could generate US$1 tln in economic synergies

SK Group Chairman Chey Tae-won declared on November 3 that economic cooperation between South Korea and Japan could yield over US$1 trillion in synergies. He stated this at a forum organized by the Yonhap News Agency in Seoul. South Korea and Japan possess a combined gross domestic product of $6 trillion, according to Chey. He suggested that generating $1 trillion in synergies from this $6 trillion economy is achievable through economic growth and cost reductions.

The Yonhap Future Economic Forum, themed "A Fragmenting Global Economy: Connecting South Korea and Japan Through One Market," gathered approximately 500 participants from both nations, encompassing political, business, and academic leaders. Chey emphasized the necessity of bipartisan support in both Seoul and Tokyo, stressing the importance of creating a "framework" to bolster economic ties between the two countries.

He believed that with bipartisan backing, governments and businesses could pursue ambitious initiatives with confidence. Chey also highlighted the potential for further economic enhancement, particularly by curbing social costs. He cautioned that irrespective of a nation's income level, accruing more debt will not alleviate the issue; instead, it exacerbates the structural problem.

Challenges such as aging populations, low birthrates, and escalating healthcare expenses in both countries were cited as significant hurdles. Lastly, Chey advocated for the establishment of a shared platform where experts from both South Korea and Japan could access and utilize.