SK chief says S. Korea, Japan could generate US$1 tln in economic synergies

By Kim Han-joo

SEOUL, Nov. 3 (Yonhap) -- SK Group Chairman Chey Tae-won, who also heads South Korea's largest business lobby group, said Tuesday economic cooperation between South Korea and Japan could generate more than US$1 trillion in synergies.

Chey, chairman of the Korea Chamber of Commerce and Industry, made the remarks at a forum hosted by Yonhap News Agency, South Korea's key newswire, in Seoul.

"South Korea and Japan have a combined gross domestic product of $6 trillion," Chey said. "Generating $1 trillion in synergies from a combined $6 trillion economy is possible through growth and cost reductions."

The Yonhap Future Economic Forum, held under the theme "A Fragmenting Global Economy: Connecting South Korea and Japan Through One Market," brought together around 500 participants from the two countries, including political, business and academic leaders.

Chey also called for bipartisan support in both Seoul and Tokyo, stressing the importance of establishing what he called a "framework" to strengthen economic ties between the two countries.

"If lawmakers in both countries provide bipartisan support, governments and businesses will be able to pursue bold initiatives with confidence," he said.

Chey said there was still considerable room for the two countries to improve their economic performance, particularly by reducing social costs.

"Regardless of how much a country earns, if it spends even more, its national debt will continue to grow. This is a structural problem that needs to be addressed," he said, citing challenges such as aging populations, low birthrates and rising healthcare costs in both countries.

Lastly, Chey called for the two countries to establish a shared platform that experts from both sides can access and use.

khj@yna.co.kr
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