Japanese PM Takaichi Visits South Korea to Discuss Energy Issues in President Lee's Hometown

Tokyo, 19th - Japanese Prime Minister Sanae Takaichi departed for South Korea today to hold a summit with South Korean President Lee Jae-myung in his hometown. According to a draft document obtained by Japanese media, the two sides intend to promote a mutual support mechanism for petroleum products, which may include jet fuel needed in emergencies. PM Takaichi departed from Tokyo's Haneda Airport this morning for a two-day trip to Andong, Gyeongsangbuk-do, in southeastern South Korea. Before her departure, she stated, "As the current international situation and strategic environment, including the Middle East and Indo-Pacific regions, are severe, I look forward to thoroughly deepening discussions with President Lee on the direction for promoting cooperation between our governments and further developing Japan-South Korea relations." She also added, "I hope to fully discuss concrete ways of cooperation in the energy sector." President Lee visited PM Takaichi's hometown of Nara Prefecture in January, making this visit a reciprocal one. According to the Yomiuri Shimbun, this visit is part of the 'shuttle diplomacy' between the leaders of Japan and South Korea, and it is Takaichi's first visit to South Korea since taking office last year for a purpose other than attending an international conference. The summit will discuss energy cooperation stemming from the situation in Iran, as well as responses to issues concerning the US and China. In particular, the governments of Japan and South Korea are expected to issue a related document in the form of a "joint press release" after the meeting to strengthen energy security and supply chain resilience. According to the draft, given that both Japan and South Korea rely heavily on crude oil imports from the Middle East and have strengths in petrochemicals and refining, they will promote public-private dialogue to ensure smooth cooperation in emergencies, focusing on mutual accommodation of crude oil and petroleum products. In a supply crisis, they will support each other, with petroleum products expected to be mainly aviation fuel. This dialogue will later also touch upon export controls for goods like petroleum products and cooperation in crude oil procurement and transportation. Currently, about 10% of the heavy oil exported by South Korea goes to Japan. Furthermore, the joint document will clearly state that they will consider joint participation in the Japanese-led energy procurement financial support framework, POWERR Asia, worth about $10 billion. They will also agree to establish a new "Industrial and Trade Policy Dialogue" involving high-level officials from Japan's Ministry of Economy, Trade and Industry and South Korea's Ministry of Trade, Industry and Energy to discuss a series of policy collaborations.