Political Feasibility of Korean-Japanese Cooperation in Global Electric Vehicle Supply Chains

Abstract

Shifting patterns in economic internationalisation are transforming the value proposition of global supply chains. The Republic of Korea and Japan, in theory, are particularly well positioned to gain from shifting patterns in international trade, with strong economic policy and fundamentals, globally competitive and internationally-oriented firms, and warm relationships with the current hegemons, the United States and China. Conventional international relations theory, whether realist or liberal, suggest that the two nations make for ideal partners for fruitful economic integration. However, against all expectations, Korean-Japanese diplomacy has seen a perplexingly enduring unravelling in recent years, as unresolved historical grudges permeate every aspect of their relationship. This report aims to demonstrate that while Korea and Japan’ are theoretically well placed to benefit from shifting geopolitical and economic trends, they would further benefit from reversing years of antagonistic foreign policy and bilateral protectionist attitudes. The paradigm shift that is the electrification push of the automotive industry, which has to this point been largely propelled by East Asian lithium-ion battery technology and manufacturing, could be the opportunity that brings about a reversal in Korea and Japan’s antagonistic bilateral trade policy.