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South Korean President Moon Jae-in makes the opening remarks during an emergency Blue House Cabinet meeting on Aug. 2 to discuss countermeasures to Japan’s latest economic retaliatory measures. (Blue House photo pool)

After the Japanese government decided in a cabinet meeting on Aug. 2 to remove South Korea from its “white list” of trusted trading partners, the South Korean government immediately announced firm retaliation through a list of prepared countermeasures. Along with a support plan centered on strengthening the country’s economic and security capabilities, Seoul called for unity, so as to best utilize the nation’s resources. South Korean President Moon Jae-in also declared that this was an opportunity to get the better of Japan. “There’s a saying that history can be accelerated but not ignored. This is a hurdle we’ll have to clear at one point or another,” he said.

During the emergency cabinet meeting on Friday, Moon used a lot of language that suggests a head-to-head showdown: “the attack by the Japanese government,” “harming the future growth of our economy,” and “self-centered and bothersome behavior that damages the global economy.” Such phrases leave no doubt that Moon considers this a grave situation and intends to respond firmly to the Japanese government.

This response was apparently already unfolding on Friday afternoon as Kim Hyun-chong, second deputy director at the Blue House’s National Security Office, called a briefing at which he officially mentioned that the government as mooting a withdrawal from South Korea and Japan’s information-sharing agreement, known as GSOMIA, while First Vice Foreign Minister Cho Sei-young called in Japanese Ambassador to Seoul Nagamine Yasumasa to lodge a strong complaint.

“Japan may be an economic power, but we have the means to fight back. We won’t stand for Japan loudly claiming victimhood when, in fact, it’s the perpetrator. If Japan deliberately damages our economy, it will be in for some serious damage as well,” Moon stressed.

Seoul clearly signaled its intention to treat Japan’s measures as an opportunity to end what has been called the “cormorant economy.” This refers to an economic structure in which South Korean companies import key parts and components from Japan for the manufacture of semiconductors and displays that are then exported to other countries — an arrangement in which increasing exports serve to line Japan’s pockets.

The term “cormorant economy” derives from a Chinese fishing practice, in which a string is looped around the neck of the cormorant and then drawn tight when it catches a fish, preventing the cormorant from swallowing until the fish can be retrieved.

“The time when an adversary could be beaten down by force is merely a vestige of the past,” Moon said during the cabinet meeting. His remark about “turning adversity into an opportunity for advancement,” suggesting that the conflict could be a blessing in disguise, appears to fall along the same lines.

With that goal in mind, Moon said, “the government will provide companies assistance whenever possible to minimize their damage, helping them find alternative importers of parts and materials, restock inventory, acquire foundational technology, develop technology to foster domestic industries, build new factories, and improve their finances.”

“We will take this as an opportunity to make the parts and materials industry more competitive. That will not only ensure we are never again subjected to technological hegemony but also further elevate our status as a manufacturing power,” Moon pledged.

“Japan’s absolute advantage in the manufacturing industry was overcome by Park Chung-hee’s policy of developing heavy industry, and the foundation for the development of the parts and materials industry was laid by Kim Dae-jung’s strategy of growing that industry. This is the time for us to combine our powers,” Kim Hyun-jong stressed during the briefing.

Though these remarks make clear that Seoul won’t be pulling any punches, Seoul also held open the possibility of dialogue. “Even now, the South Korean government doesn’t want a vicious cycle of attacking and counterattacking. There’s only one way to halt [the current situation], and that’s for the Japanese government to swiftly retract its unilateral and unjust measures and to engage in dialogue,” Moon said. In the long term, Moon suggested, Seoul will continue its efforts to find a diplomatic solution through dialogue.

Moon’s remark during the cabinet meeting that “the US proposed that [South Korea and Japan] take time to negotiate, but Japan didn’t accept that proposal” was also apparently aimed at pressuring Japan to take part in dialogue.

In a similar vein, Kim Hyun-chong revealed that Seoul has expended considerable effort on diplomacy, with a senior government envoy paying two visits to Japan last month. “We explained why it took us eight months to express our position about the forced labor issue, and we communicated our willingness to discuss all issues, including Japan’s proposal,” Kim said.

Kim also added that Japan had rejected both the US’ proposal to hold trilateral high-level talks with South Korea and South Korea’s proposal for two-party dialogue between senior envoys at the World Trade Organization (WTO).

By Lee Wan, staff reporter

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