On July 15, 2025, South Korea’s Foreign Ministry lodged a formal protest against Japan’s latest defense white paper, which once again asserts Japan’s sovereignty over the disputed islets known as Takeshima in Japan and Dokdo in South Korea[1]. The South Korean government described the islets as “clearly an integral part” of its territory, citing historical, geographical, and international legal grounds. While the white paper renewed the sovereignty claim, it also described South Korea as a partner for addressing global challenges, reflecting ongoing intentions to sustain cooperation between the two countries[1].
In recent days, South Korea “strongly” condemned the reiteration of Japan’s territorial claims, highlighting the enduring diplomatic tensions between the two neighbors[5]. This dispute continues to be a sensitive and recurring point of contention in bilateral relations.
Meanwhile, on the economic front, both countries are facing external pressures due to the announcement by U.S. President Donald Trump that new tariffs will be imposed starting August 1, unless Korea and Japan dismantle what are described as unfair trade barriers[3]. The tariffs will see 25 percent duties placed on all exports unless manufacturers relocate to the United States. The decision to announce the measures against Korea and Japan first was interpreted as a deliberate signal, emphasizing that even key U.S. allies are not exempt[3]. In South Korea, the Bank of Korea anticipates that the auto industry will be most affected, with projections of a 0.6 percent drop in exports overall, and US-bound exports expected to decrease by as much as 4 percent this year[3]. South Korea is considered more vulnerable to these tariffs due to its economy’s heavier dependence on exports, which account for more than 40 percent of its GDP—twice as high as Japan’s share[6].
Despite these frictions, there are ongoing efforts to foster deeper cooperation, particularly in the face of changing global power dynamics. Experts and policymakers are focusing on areas such as economic security, technological competition, regional security, and supply chain cooperation. Notably, both governments have agreed to strengthen collaboration on supply chains for hydrogen and ammonia[2][4]. Recent joint research also highlights the need for South Korea and Japan to lead in setting global norms for emerging technologies like AI and cyber governance, as well as to deepen their economic engagement with the Global South[2].
References
- [1] S. Korea Protests Japan’s Claim to Takeshima in White Paper
- [2] 2025 South Korea-Japan Partnership
- [3] Allies under fire: Why do Trump tariffs target South Korea, Japan first?
- [4] 2025 South Korea-Japan Partnership: Preface
- [5] South Korea ‘strongly’ protests Japan’s renewed claim to Dokdo in Defence White Paper
- [6] For South Korea’s New President, Trump’s Tariffs Are an Ultimatum