Ajou's Center for Japanese Policy holds an international conference at the University

2015-10-28

At 1:30 p.m. on October 28th, Ajou's Center for Japanese Policy (Director Seong Bin Pak) held an international conference under the theme "Looking Forward to a New Era of Economic Cooperation between Korea and Japan" at the University's Dasan Building Auditorium. The conference was prepared to commemorate the 50th anniversary of normalizing diplomatic relations between Korea and Japan and celebrate the opening of the Center.

The conference was based on the belief that Korea and Japan face common challenges both internally and externally, and it was attended by prominent economic experts from the two countries. The global economic environment involving Korea and Japan is changing dramatically as China turns into an economy centered on domestic demand amid shrinking trade of processed products. Internally, the two economies face low birth rates, aging societies, and sluggish growth.

Ajou's President Dong Yeon Kim said in his opening speech, "With the opening of the Center for Japanese Policy, Ajou plans to take student exchanges with its twelve sister universities in Japan to a higher level of cooperation with many other Japanese universities, research institutes, and industries. Furthermore, the University will establish itself as a hub of research and cooperation in Northeast and Southeast Asia by integrating the China Policy Institute, the Center for Unification Studies that will be launched, and research and collaboration regarding Southeast Asia."

In his congratulatory remarks, Japanese Ambassador to the Republic of Korea Bessho Goro said, "The Summit of Korea, China, and Japan is scheduled to take place soon," adding, "We will do our best to turn the occasion into an opportunity to further develop the relations between Korea and Japan, and make the 50th anniversary of reopening diplomatic relations a starting point to explore a new future together." Counselor Takashi Osada from the Japanese Embassy to the Republic of Korea read the speech on behalf of Ambassador Goro due to another urgent engagement.

Presentations on the above theme were given by Professor Yoon Je Cho (Graduate School of International Studies at Sogang University, Former Secretary to the President for Economic Affairs) and President Joon Kyung Kim of the Korea Development Institute from among the Korean participants, and Dean Naoyuki Yoshino of the Asia Development Bank Institute and Takashi Matsumoto (Advisor to the Dai-Ichi Life Research Institute, Former Vice Minister of the Cabinet Office) from among the Japanese participants.

In addition to the presenters, Professor Yong Jin Kim (Ajou University), President Chang Su Jin of the Sejong Institute, and Senior Researcher Jae Ha Park from the Korea Institute of Finance presided over the panel discussions. Panelists included Professor Hee Gab Choi (Ajou University), Vice President Sung Chun Jung (Department of International Macroeconomics & Finance, Korea Institute for International Economic Policy), President Won Deok Lee of the Korean Association for Contemporary Japanese Studies, Director Gyu Don Jung (International Economic Affairs Bureau, Ministry of Strategy and Finance), Professor Seong Bin Pak (Head of the Division of International Studies, Ajou University), and Counselor Takashi Osada from the Japanese Embassy to the Republic of Korea.

[Summary of Presentations]

▲ Professor Yoon Je Cho – Internally, the Korean economy is facing declining vitality and rising welfare demands in terms of medical expenses and pensions, etc. due to the aging population, as well as deepening social conflicts amid deteriorating income distribution. On the external front, it should carry out industrial restructuring as China is fast catching up. Innovative systems, structural reforms, and improved fiscal functions are necessary regarding income redistribution. We should learn from Japan's experiences in order not to follow the long-running depression of the neighboring economy.

▲ President Joon Kyung Kim - The funds which South Korea received from Japan as a claim for war damages after the two countries normalized diplomatic relations in 1965 contributed to resolving the difficulties that South Korea was experiencing in raising foreign capital in the early days of promoting its heavy and chemical industries. At the time, South Korea was desperate to raise foreign capital. The resumed diplomatic relations led to a three-way trade system among Korea, Japan, and the U.S.: Korea processed intermediate goods and parts with its labor force after importing them from Japan and then exported them to the U.S. The international network enabled the Park Jung Hee administration to launch its strategy driven by export-based industrialization.

▲ Dean Naoyuki Yoshino - Japan's two-decade-long depression resulted from structural causes. These were the aging population and the flawed financing to small- and mid-sized enterprises (SMEs) and venture businesses among others. South Korea needs to reform its employment system, provide finances to SMEs and startups, and establish the credit rating system for SMEs. In addition, fiscal discipline should be introduced to prevent fiscal deficits from escalating.

▲ Takashi Matsumoto (Former Vice Minister of the Cabinet Office) – The long recession in the Japanese economy was due to the appreciation of the Yen, and Abenomics is the policy to respond to it. The third arrow pursued by the Abe administration focuses on redistributing income from economic growth by expanding support for child-rearing and reinforcing the social security system, etc. It is important that South Korea and Japan share their respective experiences in that the two countries have many challenges in common.