The way forward for two awkward neighbours: Korea-Japan relations

In 1965, two decades after the end of the Japanese colonisation of Korea brought about by the conclusion of the Second World War, Japan and South Korea normalised diplomatic relations, starting a period of mutual trade, investment and growth that has continued unabated. Now, almost 60 years later, there are still some unresolved thorny issues between the two close neighbours: the so-called "comfort women", wartime forced labourers, and the sufficiency of official Japanese apologies for the colonial period.

Yoon Suk-yeol, president of South Korea, announced that his government and Japan had found a solution to all outstanding matters. The details involve a compensation fund paid into mostly by South Korean and some Japanese companies on a voluntary basis, and a reiteration of Japan’s 1998 statement of deep remorse and heartfelt apology. As a result, it seemed the freeze had thawed and Mr Yoon met with Japan’s prime minister Mr Kishida in the first bilateral summit in a dozen years.

But the deal remains a hard sell in South Korea, with a recent Gallup poll showing that 59% of Korean respondents were opposed to the compensation plan. Will Mr Yoon be able to persuade enough of the South Korean public that this is the best way forward for the two liberal democracies in this time of global and geopolitical tensions and bloc formation? Will the deal stick longer than the current administration, or will Japan-Korea ties resume their familiar hot and cold cycle when someone from the opposition assumes the presidency?

How are businesses in South Korea and Japan viewing things from the ground? Is this the break they have been waiting for? Join us and a panel of experts as we try to explore the short- to mid-term future for these two key North Asian economies.