Seoul and Tokyo thaw promises multiple benefits

Significance

The removal of politically motivated restrictions by both sides has set the stage for the expansion of bilateral trade and investment and for cooperation in a number of areas.

Impacts

• Japanese companies will gradually recover positions they held in the South Korean market before 2019.
• Some South Korean imports will not be restored as South Korea has improved domestic production and diversified import sources.
• The two sides will pursue strategic cooperation in R&D and supply chains, bilaterally and with the United States.
• Domestic politics in South Korea will decide whether Seoul’s friendlier policy towards Tokyo will endure.