Japan and South Korea CEOs Eye Stronger Ties in Semiconductors and AI

A Renewed Partnership in the Making

As the 60th anniversary of the normalization of diplomatic relations between Japan and South Korea approaches on June 22, 2025, a major cross-border corporate dialogue reveals growing enthusiasm for closer cooperation between the two nations. In a joint survey conducted by Japan’s Nikkei and South Korea’s Maeil Business Newspaper, nearly 40% of Japanese and South Korean business leaders stated they intend to expand collaboration with companies from the other country.

Amid a global climate increasingly shaped by protectionism, especially in the U.S., this survey points to an emerging consensus: Japan and South Korea must deepen their commercial ties—particularly in cutting-edge sectors like semiconductors and artificial intelligence (AI)—to maintain competitiveness and economic resilience.

the Original

The Japan-Korea Business Leaders Survey, conducted ahead of the 60th anniversary of diplomatic normalization, highlights a shared desire for increased cross-border corporate alliances. Around 40% of executives from both countries expressed plans to expand cooperation with firms from the other nation, with a strong focus on key industries such as AI and semiconductors. Business leaders recognize that in an era of escalating global protectionism, regional partnerships can be an effective strategy to safeguard economic interests and accelerate technological development.

This collaboration is not just theoretical; prominent companies such as Mitsubishi, Sumitomo, Asahi, Canon, Nissan, and Toyota from Japan, and major Korean firms, are already in discussions or in active partnerships. These alliances span sectors from heavy industry to digital transformation, with growing emphasis on AI-driven innovation, data sharing, and resilient supply chains.

Executives also acknowledged the political backdrop, noting that diplomatic improvements under leaders like Japan’s Fumio Kishida and South Korea’s Yoon Suk Yeol have made it easier to pursue cooperative ventures. The economic climate and evolving global trade patterns are pushing both nations to rethink traditional barriers and instead pursue complementary strengths.

Overall, the survey reflects cautious optimism: while historical and political friction persists, the economic rationale for deeper collaboration in strategic industries is gaining momentum.

What Undercode Say:

The timing of this renewed interest in Japan-Korea cooperation could not be more critical. With China’s industrial ambitions becoming more assertive and the U.S. increasingly turning inward, regional players like Japan and South Korea are right to reconsider how they can secure technological independence without sacrificing global competitiveness.

From an economic viewpoint, the AI and semiconductor sectors are particularly ripe for collaboration. Japan brings precision engineering, advanced manufacturing, and capital strength. South Korea, on the other hand, leads in memory chip production, device innovation, and tech-savvy talent. Together, they could form a formidable force in next-gen computing, robotics, and data infrastructure—an Asian counterweight to Silicon Valley and Shenzhen.

Moreover, the strategic alignment of business and diplomacy is encouraging. The survey suggests that CEOs are no longer waiting for governments to set the tone—they’re proactively looking for synergies. This indicates a bottom-up shift, where the private sector is becoming a powerful engine for foreign policy stability.

However, challenges remain. Cultural differences, legal discrepancies, and historical baggage can still derail even the most promising initiatives. To succeed, both countries will need to invest not just in joint R\&D but in soft infrastructure: mutual trust, standardization agreements, and cross-border funding mechanisms.

One interesting angle is ESG (Environmental, Social, and Governance) metrics. If Japan and Korea can co-develop green semiconductor tech or AI that prioritizes ethical use, they could set global standards rather than just catching up with the West. This is especially relevant as both countries grapple with aging populations and labor shortages—problems that demand automated, AI-enhanced solutions.

In conclusion, this is not just about economics or geopolitics. It’s about redefining what regional leadership in the 21st century looks like. If Tokyo and Seoul can turn boardroom intentions into tangible outcomes, they could not only future-proof their own economies but shape the contours of Asia’s digital future.

🔍 Fact Checker Results

✅ Verified: 40% of surveyed CEOs support increased cross-border collaboration.
✅ Verified: Key focus areas are semiconductors and AI.
✅ Verified: Survey coincides with the 60th anniversary of diplomatic normalization.

📊 Prediction:

Expect a surge in bilateral tech MOUs and joint venture announcements between Japanese and South Korean firms over the next 12–18 months. The semiconductor sector, in particular, may see co-investment deals in third countries like Vietnam or India, designed to bypass geopolitical risks and diversify supply chains. AI initiatives will likely focus on co-developing models trained on East Asian languages and ethical frameworks, giving both countries a competitive edge in regional AI deployment.

References:

Reported By: xtechnikkeicom_1494b944df54578f0debc147
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