On August 15, 2025, the 80th anniversary of Korea's liberation, South Korean President Lee Jae Myung announced a significant shift in foreign policy, designating Japan as an "indispensable partner" for economic development. This marks a departure from his previous critical stance, signaling a pragmatic approach focused on forward-looking, mutually beneficial cooperation.
President Lee's upcoming diplomatic engagements include a meeting with Japanese Prime Minister Shigeru Ishiba in Tokyo on August 23-24, 2025, followed by a meeting with U.S. President Donald Trump in Washington D.C. on August 25, 2025. These discussions are expected to shape regional stability and economic cooperation, especially given evolving global dynamics and the U.S. administration's recalibration of alliances. In a move to de-escalate regional tensions, President Lee also announced plans to restore the Comprehensive Military Agreement with North Korea, originally established in 2018 and abandoned by both Koreas in 2024. This agreement aims to reduce border tensions and foster dialogue.
The new diplomatic direction emphasizes shuttle diplomacy, with frequent reciprocal visits between leaders. This approach was initiated with a meeting between President Lee and Prime Minister Ishiba at the G7 summit in Canada in June 2025. The upcoming Tokyo summit is anticipated to focus on solidifying this partnership and strengthening trilateral coordination with the United States. South Korea and Japan, while historically navigating complex issues, are increasingly finding common ground in economic interdependence and regional security. The year 2025 also marks the 60th anniversary of diplomatic relations between the two nations. Discussions are also emerging about a potential 'Korea-Japan Economic Union,' drawing parallels with the European Union, to bolster economic ties and address shared challenges such as aging demographics and global trade uncertainties. Bilateral trade between South Korea and Japan reached $77.2 billion in 2024, with opportunities for collaboration in sectors like electric vehicles, batteries, and digital technologies. President Lee's administration is prioritizing pragmatic, national interest-driven diplomacy, balancing historical considerations with the imperative for future-oriented cooperation, which is seen as crucial for navigating the current geopolitical landscape.