South Korea and Japan urged to form $6 trillion economic bloc amid global trade fragmentation

A US$6 Trillion Economic Bloc: Can South Korea and Japan Overcome History?

The chairman of SK Group has proposed building a shared economic community between South Korea and Japan that would create the world's fourth-largest economic bloc, valued at US$6 trillion annually. The ambitious vision comes as both nations face mounting pressure from tit-for-tat tariffs and supply-chain disruptions stemming from conflicts in the Middle East and Ukraine.

The Proposal Behind the Numbers

Chey Tae-won, who also chairs the Korea Chamber of Commerce and Industry, laid out his vision in recent weeks through multiple channels. In an interview with Japan's Asahi newspaper published this week, he explained that connecting the two economies more closely could create an economic bloc ranking fourth globally after the United States, the European Union and China.

The proposal arrives at a moment when the era of relatively open global trade is giving way to fragmented markets, making regional cooperation more strategically valuable.

Expert Assessment and Historical Parallels

Lee Won-deog, a professor at the Institute of Japanese Studies at Kookmin University, described Chey's proposal as "bold". He argued that "Korea-Japan economic integration is the spirit of the time as the global trade order fragments, superpower rivalry grows and regional blocs strengthen".

Lee pointed to a potential roadmap for reconciliation: the post-war partnership between France and Germany, whose cooperation in industries such as energy and steel helped lay the foundations for the European Union. Whether South Korea and Japan can replicate that model remains the central question.

Source: South China Morning Post