ΆΓ  Korea, Japan to Hike Cooperation in Info Tech, Investments

KoreaTimes 2000.11.03  

Korea and Japan yesterday agreed to boost cooperation in the fields of information technology and investment, capitalizing on the particular strengths of the neighboring countries.

Discussions to the effect were held in a meeting between Korean Commerce, Industry and Energy Minister Shin Kook-hwan and Japanese Minister of International Trade and Industry Takeo Hiranuma in Seoul yesterday.

Separately, representatives of the chambers of commerce of the two countries talked about the possibility of setting up a free trade agreement to boost exchanges between Korea and Japan.

In his meeting with Minister Hiranuma, Shin pointed out the need for more active investments in Korea by Japanese companies, especially in the field of parts and components.

Along this line, Hiranuma said a parts and components procurement mission will be dispatched here next year along with one designed to evaluate the changing climate for foreign investment.

At the same time, the two ministers agreed to set up a joint policy consultative body for pushing the Korea-Japan Information Technology Initiative which was adopted between the two countries in September.

``The two ministers reviewed the possibility of setting up joint e-marketplaces in shipbuilding, iron and steel and textile while introducing a comprehensive electronic data interchange (EDI) system.

In addition, the two governments will take the initiative in organizing a venture business investment mart, the first to be held in Seoul this year and the next in Tokyo in 2001.

``Minister Shin also delivered a list of 200 outstanding small and medium-size companies who have the potential for setting up partnerships with Japanese counterparts,'' one ministry official said.

Meanwhile, representatives of the Korea Chamber of Commerce and Industry and the Japan Chamber of Commerce and Industry separately discussed the possibility of adopting a free trade agreement between the two neighboring countries.

``With economic blocism expanding in Europe and in the United States, Korea and Japan must take the initiative in setting up a cooperative economic entity in these parts of Asia,'' one Japanese official was quoted as saying.

As the first step to forming such a regional alliance, Korea and Japan need to enter into a free trade agreement as quickly as possible, he added.

While recognizing the need for such an arrangement, KCCI officials said the two countries need to address the issue of the heavy imbalance in trade in Japan's favor which will only get worse with free trade.

``As had been in the past, there is room for more Japanese investment in Korea, especially in the field of parts and components, by wsmaller companies,'' one KCCI official said.