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| Dr. Sakong Il, honorary chairman of the Institute for Global Economics, talks about Japan imitating the United States in Tokyo's recent trade embargo against Korea. Yonhap |
By Oh Young-jin
A globally known Korean economist warned Korea and Japan over their looming trade war, reminding them that their dispute is destroying the free-trade system of which they are the two greatest beneficiaries.
"Japan has risen from the ashes as the defeated nation in World War II and it is the free trade born in the post-war new liberal global order that has enriched it and made it the world's No. 3 economy," Dr. Sakong Il told The Korea Times.
Now Tokyo had turned back on the system and used the power it earned thanks to it, ironically destroying it.
"It is like a child slapping the mother that breastfed it and it is an ungrateful act," he said, telling Japan what it could gain from the destruction of the free trade system.
Sakong, honorary chairman of the Institute for Global Economics (IGE), a think-thank, has led the nation's economy as finance minister and aided presidents. Sakong has a global network among the world's leading economists, having hosted their lectures at IGE for years.
Japan's Prime Minister has led an embargo to stop the export of key ingredients for semiconductors, Korea's top export earner, in retaliation for the Supreme Court's ruling that ordered Japanese firms to make restitutions to Korean laborers during its imperial war effort.
Now the assets of the Japanese firms in Korea are being seized because the companies refused to comply with the court order.
Sakong, who led the organization of G20 meeting of industrialized nations during the Lee Myung-bak administration, said that it was regretful to see Japan follow the U.S. in free-trade bashing.
"Prime Minister Abe is following President Trump to bully the allies to promote self-interest at the cost of others'," he said. "It will serve nobody's interest."
He was referring to Trump's trade war against China, slapping and threatening to slap more tariffs on Chinese imports, a move seen as the contest of the existing power and the rising new power caught in a Thucydides' trap. It is widely seen that U.S. is trying to slow China's growth, if not stopping it.
The U.S. is especially, targeting Huawei, the leader in 5G technology, to starve the Chinese firm of global supply lines. American firms supply key parts for Huawei products.
Sakong said that Abe should realize as soon as possible that there would be no winners, only losers in the Korea-Japan dispute.
Now Japan is believed to add to its embargo list to increase pressure on Korea, but Moon has made clear he will make no concessions.
Sakong, no great fan of the progressive government led by President Moon Jae-in, urged the two countries to be adult in dealing with their differences and use imagination to find a solution.
