Link to article: https://japantoday.com/category/politics/update1-japan-urges-s.-korea-to-present-solution-over-wartime-labor-row
Japanese and South Korean officials have met for the first time since Japan’s new minister took office. Among other topics, the country’s officials are discussing a ruling by the South Korean court that seized the assets of Nippon Steel Corporation. The South Korean courts have ruled that the steel company must pay four individuals for labor that was forced during brief Japanese control over South Korea in the early 1900s.
Japan opposes the South Korea ruling because they claim that they have already settled all debts owed to South Korea through financial compensation in a bilateral agreement. South Korean president Moon Jae In has refused to involve himself with the court ruling, the reason for which is to maintain a separation of powers within his government.
Japan and South Korea have a history of political disagreements, ranging from territory control to political policy surrounding North Korea. However, there is a possibility to improve their relationship now that Japan has a new prime minister.
Japan and South Korea have just recently resumed business travel between the two countries that had previously been halted in an attempt to minimize the spread of Covid-19. However, the recent argument over the South Korean’s court decision has the potential to disrupt the newly restored travel opportunities for businessmen. This will have a negative impact on both countries’ economies, which have already been hit hard by restrictions due to Covid-19.
Japan and South Korea’s decision to create special travel rules for those trading between the two countries is an example of reciprocity. The trade and economic business brought in by the agreement benefits each country with minimal risk or disadvantages.
However, while the principle of reciprocity can be applied to their agreement, this has only worked in the short run. In the long run, the collective goods problem will apply, which means it is more difficult for the two countries to work together productively, because they only share an economic interest rather than identical policy plans.