South Korean President Moon Jae-in stressed the need to seek economic growth and improve inter-Korean relations in overcoming trade curbing measures imposed by Japan.

Speaking at a weekly meeting with senior aides, Moon said the government must look beyond responding to Japan’s measures to laying the foundation for “overtaking” Japan’s economy, and highlighted the importance of what he called a “peace economy”.

“Extraordinary determination and bigger perspective to overtake the Japanese economy is needed,” Moon said, urging his aides to show the government’s determination in policies and in drawing up next year’s budget.

“Japan cannot block our economy’s leap. In contrast, [the measures] will be a stimulus that strengthens our determination to become an economic powerhouse,” Moon said.

Listing industrial developments, such as the commercialisation of fifth-generation (5G) technology, and policies such as the New Southern Policy and New North Policy that aim to diversify Korea’s export destinations, Moon said stepping up innovative growth and expanding the scope of the South Korean economy are “fundamental solutions” to the current situation.

‘Catch up in one leap’

Moon’s comments echo views that Japan’s decision to remove South Korea from its list of trusted trade partners and to apply tighter controls on exports of key semiconductor-related materials may have more fundamental objectives.

According to a high-level government official, Tokyo may be aiming to create uncertainties and instability within the Korean corporate community and the public, which would generate indirect costs to the country’s economy and add to economic difficulties.

At Monday’s meeting, Moon went on to highlight the importance of improving inter-Korean relations to achieve “peace economy” in “overtaking” Japan.

“If [a] peace economy is achieved through economic cooperation between the South and the North, we can catch up with the Japanese economy’s advantages in one leap,” Moon said, adding that the size of the domestic market is one of the key advantages Japan has over South Korea.

Moon also took the opportunity to again criticise Japan, saying the Abe government is inciting international criticism and damaging bilateral relations.

“The Japanese government itself is creating the criticism that Japan is a country that does not remember the past. The international community is raising criticism that Japan is damaging free trade order,” Moon said.

“Japan must realise that [it] cannot take a leading role in the world based only on economic power.” THE KOREA HERALD