South Korea's Lee, outgoing Japan PM Ishiba hold talks on better ties, US trade deals

SEOUL: The leaders of South Korea and Japan agreed on Tuesday to work together to tackle global trade turmoil while reaffirming their commitment to denuclearisation on the Korean peninsula, a South Korean presidential spokesperson said.

AI Brief

South Korea's Lee and Japan's Ishiba continue cautious rapprochement, focusing on security and historical tensions.
Both leaders compare progress on US tariff talks; Japan has a framework deal while South Koreas talks remain stalled.
South Korea warns that Trumps demand for upfront investment could trigger financial instability in its economy.

President Lee Jae Myung hosted Japan's outgoing Prime Minister Shigeru Ishiba on a goodwill visit to highlight the neighbours' commitment to improve once-frosty ties and cooperate more closely on trade.

"The two leaders shared the view that ... Korea and Japan, as neighbours and global cooperation partners with similar positions, should act together to address challenges," the spokesperson, Kang Yu-jung told a press briefing after they met.

The effort to resolve challenges facing the international community comes amidst a turbulent geopolitical environment and trade order, she said, adding that both reaffirmed commitment to the "complete denuclearisation" of the Korean peninsula.

Last week, North Korean leader Kim Jong Un said there was no reason to avoid talks with the United States if it stopped insisting that his country give up nuclear weapons, but he would never abandon the nuclear arsenal to end sanctions.

SECURITY, TRADE ISSUES

Lee has engaged with Japan on security and trade issues, continuing his predecessor's policy of cautious rapprochement after years of tension over Japan's wartime history.

"As the world becomes increasingly difficult, I believe that coordination and exchange between our close neighbors are truly crucial," he said in opening remarks.

Ishiba said he hoped Korea and Japan would continue to work together more closely than any other countries do.

Ishiba, whose Liberal Democratic Party is set to pick a new leader on October 4 who is likely to become prime minister, met Lee in the southern city of Busan during his two-day visit.

Ishiba is a unique figure in the Japanese ruling party and South Korea looked forward to his continued role in helping two-way ties after he steps down, Lee's national security adviser, Wi Sung-lac, told a briefing on Monday.

U.S. TRADE TALKS

Japan has reached a framework deal with Trump, who has signed an executive order formalising the pact to lower tariffs to 15% on its products, including autos.

But many issues remain to be ironed out, including Japan's pledge to invest $550 billion in U.S. projects and further action Trump has threatened on pharmaceutical and semiconductor imports worldwide.

South Korea's Lee made a handshake deal with Trump during his visit to Washington in August but follow-up talks to finalise the trade agreement remain deadlocked, mostly over the details of $350 billion in investments pledged by South Korea.

South Korea has said that amount, if made in an upfront cash outlay as suggested by Trump, could trigger a financial crisis for Asia's fourth-largest economy.

Lee's previous summit with Ishiba was in August, just ahead of his U.S. visit.

Both agreed on Tuesday to continue discussions on common social issues such as low birth rates and ageing populations, balanced national growth and suicide countermeasures via a body for such consultations launched after the August summit.