May 2, 2023, is the day that went down in history as one of the greatest moments for the world economy. Representatives of the Korean finance minister and the BoJ held a meeting involving Chinese finance officials. So, what impact will it have on the world economy?

Choo Kyung Ho, South Korea Deputy Prime Minister of Economy and Finance; Shunichi Suzuki, Japanese Finance Minister, and Wang Dongwei, vice finance minister of China, and economic officials from these three countries, held a meeting for the 23rd trilateral meeting, today.

This is a highlight because Japan and South Korea last discussed economic cooperation long ago. This is the first finance leader's meeting in seven years. And from this meeting, they agreed to resume regular dialogue for relations.

This cooperation is still essential for economic progress despite the regional tensions. These two countries can strengthen private and government partnerships in high-tech industries, especially semiconductors, batteries, and other strategic sectors.

Japan and South Korea Finance Ministers are About to Have First Bilateral Meeting After 7 Years; China will be Involved?

In this meeting, the Japanese Finance Minister, Shuichi Suzuki, said that Japan and South Korea are essential neighbors who must cooperate to solve various challenges in the global economy, including with the regional and international community.

"Regarding geopolitical challenges, Japan and South Korea are experiencing incidents, including North Korea's nuclear missile development and Russia's invasion of Ukraine,”

“Japan sees that this is something that cannot be allowed; both countries must address this together," said the Japanese Finance Minister to the media.

Meanwhile, Choo Kyung Ho said that Seoul hopes to expand ties with Japan in various areas. The focus will be on chips and batteries, but it will also help address global issues such as climate change. This is the gear to normalize economic ties after years of trade tensions.

"Japan and Korea share common values, such as freedom and human rights. Because both countries take the free trade system, this could be the key to economic management. Many sectors from government and private join the forces," Korea’s Finance Minister continued.

Even though this is the first bilateral finance leaders' meeting after seven years and aims to improve relations between Japan and South Korea, China has a significant role here.

This became a formal meeting between finance ministers and central bank governors from 3 east asian countries. China was involved in helping exchange views regarding the economic sector and how to expect another growth.

This meeting is scheduled to set gradual development, starting from the second half of 2023. South Korea focuses on advancing the economy after slowing down inflation.

In the joint statement of this meeting, it stated: "We (China, Japan, South Korea) acknowledge that the trilateral cooperation among countries is crucial in sustaining rapid and sustainable economic recovery from the impacts of the pandemic that have been felt for years,"

How Will this Meeting Affect the Global Economy?

In the news of this meeting, economists began to focus on analyzing the results of this trilateral cooperation. This meeting has the potential to become global economic stand at the inflection point, especially since this meeting will take place regularly.

Meanwhile, the focus is also on Japan and South Korea, which have finally put aside the geopolitical tension for years for this economic progress. This financial dialogue will last three days, from 2-5 May, in Incheon, Korea.

Korea and Japan are known as two countries that have experienced geopolitical turmoil and tension going on for a long time. However, in the end, they held a meeting again after seven years. This even involves China, so it is considered to impact the global economy.