THE TTALK QUOTES 

On Global Trade & Investment
Published By:
The Global Business Dialogue, Inc.
Washington, DC  Tel: 202-463-5074
 
No. 63 of 2019
THURSDAY, SEPTEMBER 19, 2019

Click HERE for Monday's quote on Japan-U.S. Trade


KOREA AND JAPAN - CONFLICT AND SACRIFICE

 "I love Spiderman, but I am fighting my desire to watch it."

Jang Bum-jin
July 18, 2019 (publication date)
CONTEXT
To say that the Korea-Japan* relationship is fraught with difficulties and difficult memories is an understatement. To say that it is important is an even greater one. At the moment, things are bad and getting worse. They have never been good – certainly not for the last hundred years or so – but if you were to put a date on the current slide into ever increasing acrimony and economic disruptions, it would have to be October 30, 2018. That was when the Supreme Court of the Republic of Korea ruled that Japanese companies can be sued today for the harm done to Korean citizens in the 1940s.

This has led, among other things, to trade actions on both sides of the Sea of Japan (the East Sea), including a 97 percent drop in Japan’s sale of beer to Korea and a serious disruption in Korea’s ability to import from Japan chemicals that are must-haves for manufacturing semiconductors. Korea is a major producer and exporter of semiconductors and the disruptions are being felt around the world. As for the Mr. Jang’s denying himself the pleasure of the most recent Spiderman movie, we’ll get to that in a moment. But first, a few dates. 

1910 – August 22 , Japan and Korea sign the Japan-Korea Annexation Treaty. The first article declared that

His Majesty, the Emperor of Korea makes the complete and permanent cession to his Majesty the Emperor of Japan of all rights of sovereignty over the whole of Korea. 

1945 – September 2, Japan’s Minister of Foreign Affairs, Mamoru Shigemitsu signs the instrument of surrender aboard the U.S. battleship Missouri . This was the formal end of World War II. It was also the end of Japan’s rule in Korea.

The hardship endured by the Korean people during this 35 year period (1910-1945), especially during the war years, are integral to the current conflict between Japan and Korea. Forced labor and “comfort women” are at the top of the list of grievances. 

1950 – 1953. The Korean War . North Korean troops invaded the Republic of Korea on June 25, 1950. The armistice that brought an end to hostilities if not the war was signed on July 27, 1953. We almost left this one out as it is arguably not part of the feud between South Korea and Japan. Yet it is part of the history and part of the picture.

1965 – On June 22, Japan and Korea signed the Treaty on Basic Relations Between Japan and the Republic of Korea, and Japan paid substantial sums to Korea as a result. The question today – and it is a recurring one – is whether the 1965 treaty settled the matter of wartime wrongs or not. 

Shifting to more recent developments…

October 30, 2018.  The Supreme Court of the Republic of Korea orders Japan’s Nippon Steel and Sumitomo Metals to pay compensations to four Korean men forced to work for those companies in the period from 1941 – 43. Other such rulings followed. 

July 4, 2019 – Japan tightens export controls and key chemicals used by Korea’s high-tech companies, viz., fluorinated polyimide, resist polymers, and high purity hydrogen fluoride. 

September 11, 2019 – The Republic of Korea initiates a case against Japan at the World Trade Organization, arguing that the restrictions mentioned above violate the rules of the WTO.

There have been numerous other developments in this saga, and it is likely that we will soon expand our chronology. The basic point is clear enough. Relations between Korea and Japan are bad and getting worse. As today’s featured quote suggests, the issues are hardly restricted to governments and big companies. They are topics that engage citizens of both countries including Mr. Jang , the Spiderman fan. As Joori Roh of Reuters said in his article:

For now, emotions [in Korea] are running high. Marvel fan Jang Bum-jin, 34, said he threw away all his Japanese pens and is not going to watch the latest Spiderman movie, which is distributed by Sony Pictures – a U.S. based company owned by Japan’s Sony Corp.

“I love Spiderman, but I am fighting my desire to watch it,” he said.
COMMENT
The Korea-Japan antagonisms are a familiar wave in international relations, and they are now headed toward an especially unhappy trough with no mediator in site. Many would like the U.S. to play that role, though not, of course, China, which would be happy to be the mediator between these two U.S. allies. Ultimately, however, it is the parties themselves, Korea and Japan, who will write the next chapter in this drama. As we wait for that, here are two quotes and two thoughts. 

The first is from Denzel Washington . We are pretty sure he wasn’t talking about international relations when he accepted an award from the NAACP for his role in Fences . No, he was talking about individual challenges and individual achievement. Still, it was a remarkable speech and part of it – one line especially – seems apt here.  “Ease,” he said, “is a greater threat to progress than hardship.”

The years from 1945 to 1965 and beyond were a period of great hardship for both Korea and Japan, and in that period following World War II and the Korean War both countries achieved great things. Now they are richer. There is more ease, and those earlier achievements are threatened. 

The other quote is from Winston Churchill . It was part of his Finest-Hour speech of June 1940.  One of the things he did in that speech was to urge his countrymen not to turn against those who had argued for a softer line towards Nazi Germany, for appeasement. The thought rings true in today’s setting as well. He said:

Of this I am quite sure, that if we open a quarrel between the past and the present, we shall find that we have lost the future.
NOTE TO GBD MEMBERS
GBD members should have received a note regarding a GBD meeting next week on the Korea-Japan relationship. If you have not received yours, please let us know by sending an email to [email protected].
SOURCES & LINKS
*We have intentionally blurred the distinction between the different entities known as Korea. Where the reference is to Korea as it existed before being divided into North and South Korea, there should be no confusion. All references to Korea after 1945 are to the Republic of Korea or South Korea. 

From Beer to Pens is a Reuters article on Korea’s popular trade actions against Japan. This was the source for today’s featured quote.

Reparations Case Roiling Asia is a link to the New York Times article reporting on the decision by Korea’s Supreme Court to demand payment from Japanese companies. Other similar cases have followed.

Export Controls Tightened is a Reuters article from this past summer, explaining Japan’s decision to restrict the export to Korea of key industrial inputs. 

Case Initiated is a WTO press release on Korea’s request for consultations over Japan’s new export restrictions and the beginning of Korea’s formal WTO dispute with Japan over this issue. 

At the NAACP is the YouTube Clip of Denzel Washington’s acceptance speech at the NAACP ceremony in which he was honored with the Association’s Image Award for 2017 and his role in “Fences.” 

Their Finest Hour is a link to this Winston Churchill speech of June 18, 1940, including the line quoted above.
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