1.Korean Peninsula

(1) North Korea (including the abductions issue)

Under its policy of “dialogue and pressure” and “action for action,” the Government of Japan has been continuing various efforts to realize its basic policy of seeking to normalize its relations with North Korea, through comprehensively resolving outstanding issues such as the abductions, nuclear and missile issues, as well as settlement of the unfortunate past in accordance with the 2002 Japan-DPRK Pyongyang Declaration, while working closely with relevant countries, including U.S., ROK, China and Russia.

A. Domestic Affairs and Economy

(a) Domestic affairs

North Korea marks the fifth year after the regime centered on Kim Jong-Un, the First Chairman of the National Defense Commission (NDC), was established, but personnel changes of key leaderships still have been observed.

In July 2015, it became officially known that Minister for People’s Armed Forces has been changed from Hyon Yong-Chol to Pak Yong-Sik. In February 2016, it was found that the Chief of the General Staff of the Korean People’s Army (KPA) Ri Yong-Gil was replaced by Ri Myong-Su, former Minister for People’s Security.

In late December 2015, North Korea announced that Kim Yang-Gon, Director of the United Front Department (Political Bureau member of the Party) in charge of the relations with the ROK, passed away in a traffic accident. A state funeral was held on December 31.

On October 10, 2015, a military parade took place in commemoration of the 70^th anniversary of the founding of the Worker’s Party of Korea (WPK). In his opening remarks for the military parade, the First Chairman of the NDC Kim Jong-Un emphasized on the past achievements of the Party, including the “byungjin policy”¹, and called attention to the people and the youth.

On October 30, 2015, North Korea announced that the Party Congress would be held in early May 2016, for the first time since the 6^th Party Congress held in October 1980.

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• 1 A “byungjin policy” which simultaneously purses economic construction and the build up of nuclear armed forces was adopted at a plenary meeting of the Central Committee of the WPK (General Assembly) held in 2013.

(B) Economy

North Korea is said to be undergoing severe economic hardship, and the rebuilding of its economy is regarded as an issue of the utmost importance. The Economic Development Zone Law was enacted in 2013 and it was decided to establish 14 economic development zones throughout North Korea. A new Ministry of External Economic Affairs was established in 2014 and North Korea embarked on efforts to attract foreign investment.

On January 1, 2016, the First Chairman of the NDC Kim Jong-Un emphasized in his New Year Address the determination to make efforts on economic construction and improvement of people’s livelihoods, and pointed out the importance of agriculture, livestock and fisheries sectors.

The First Chairman of the NDC Kim Jong-Un has also mobilized the KPA to undertake large-scale construction projects. The “Mirae Scientists Street” including housing for thousands of households and “Paektu san Hero Youth Power Station” were completed to coincide with the 70^th anniversary (October 10) of the foundation of the Party in 2015.

North Korea’s economic growth rate in 2014 was 1.0% (Bank of Korea estimate), and it appears that it still faces structural problems across all industries, including lack of capital and energy, antiquated production equipment, and outdated technologies. Despite an upward trend of cereal production, North Korea’s food situation is still in a difficult situation.

Trade with China continues to account for the largest amount of North Korea’s external trade. In 2014, the value of North Korea’s trade with China rose to 6.86 billion US dollars (Korea Trade-Investment Promotion Agency (KOTRA) estimate), accounting for almost 90% of North Korea’s entire external trade excluding inter-Korean trade.

North Korea has also been working actively to attract tourists from foreign countries including China, and has conducted a variety of sightseeing tours.

B. Security Issues

(a) Recent circumstances

Although the international community including Japan strongly demanded self-restraint, North Korea still continues nuclear and missile development (See (b) for more information).

Furthermore, North Korea has repeatedly taken provocative actions against the ROK. On August 4, 2015, there occurred an incident in which land mines exploded in the Korean side of the Demilitarized Zone (DMZ), and two South Korean soldiers got injured. In response to this, the ROK resumed propaganda broadcasts against North Korea for the first time in 11 years. North Korea in return shelled the South Korean side twice on August 20, followed by corresponding shooting from the ROK side. North Korea asked for stopping the broadcasting within 48 hours, and notified that otherwise it would take a strong military action, which led to increased tension. Thereafter, however, high-ranking officials from both the ROK and North Korea conducted a consultation in Panmunjom, and announced a ROK-North Korea joint press statement on August 25 (see D).

(b) The current status of nuclear and missile development

On March 2, 2015, the day that routine regular U.S.-ROK joint military exercises began, North Korea launched a ballistic missile from the vicinity of Nampo, North Korea. On May 9, North Korea announced that it had successfully carried out an underwater test firing of a “submarine-launched ballistic missile” (SLBM). North Korea conducted the 4^th nuclear test in January 2016,², and in February, it launched a ballistic missile which it purports to be a “satellite”.

In February of the same year, Japan decided to take its autonomous measures against North Korea toward the comprehensive resolution of outstanding issues of concern, such as the abductions, nuclear and missile issues³. In March, the UN Security Council unanimously adopted Resolution 2270, which strengthens sanctions greatly. Japan engaged in vigorous consultations and demarché with Security Council members aiming at adopting a resolution that includes strong measures, while maintaining close cooperation with relevant countries such as the U.S. and the ROK as a non-permanent member of the Security Council. As a result, a strong Security Council resolution reflecting Japan’s position to a respectable degree was adopted. Japan will continue to respond appropriately in close cooperation with relevant countries to assure the strict implementation of the resolution, while implementing Japan’s own measures steadily.

North Korea’s continued nuclear and missile development poses a serious threat to the region as well as the entire international community. Japan, in close coordination with relevant countries, including the U.S., the ROK, China, and Russia, will continue to strongly urge North Korea to refrain from any further provocation and to carry out concrete actions toward denuclearization and other goals in compliance with the Joint Statement of the Six-Party Talks and the relevant UN Security Council resolutions.

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• 2 On January 6, 2016, Chosun Radio and Television Broadcasting announced in its special critical news that the country succeeded in a H-bomb test for the first time, while claiming that the nuclear test was intended for a self-defense measure to protect sovereignty and its right to exist.
• 3 Contents of Japan’s autonomous measures against North Korea are as follows: (1)The Government of Japan increases the number of people who are subject to restrictions on movement of persons, including banning on the re-entry of foreign experts on nuclear and missile technology residing in Japan with an aim to go to North Korea; (2)The Government of Japan reduces the lowest amount that requires notification and bans the payment to North Korea as a rule; (3)The Government of Japan bans the entry of all North Korean flag vessels including those for humanitarian purposes and third-country flag vessels which have previously called at ports in North Korea; (4)The Government of Japan adds to entities and individuals designated for asset-freezing measures.

C. Japan-North Korea Relations

(a) Efforts on the abductions issue

To date, the Government of Japan has identified 12 separate incidents, involving a total of 17 Japanese abductees, 12 of whom have not yet returned home. North Korea claims that 8 of these 12 have died and that it is unable to confirm that the other 4 ever entered its territory, but as no convincing explanation of this claim has been provided, Japan continues to work toward the resolution of this issue on the assumption that all of the abductees whose where abouts are unknown are still alive. As well as being a critical issue concerning the sovereignty of Japan and the lives and safety of Japanese citizens, abduction by North Korea constitutes a universal issue among the international community as a violation of basic human rights. Based on the basic recognition that the normalization of diplomatic relations with North Korea is impossible without a solution of the abductions issue, Japan has positioned its resolution as one of its most important foreign policy issues. Accordingly, Japan strongly urges North Korea to ensure the safety of all abductees, and their immediate return, to provide a full account of all the abduction cases, and to hand over the perpetrators.

(b) Japan-North Korea consultations

On the occasion of the ASEAN-related Foreign Ministers’ meeting held in Malaysia on August 6, 2015, a meeting was held between Foreign Minister Kishida and Foreign Minister of North Korea, Ri Su-Yong. Minister Kishida conveyed Japan’s concerns, while requiring North Korea to fulfill the agreement in May 2014 (agreement in Stockholm) and strongly urged North Korea to return all the abductees at the earliest possible date. In response, Minister Ri Su-Yong explained that the Special Investigation Committee was faithfully conducting investigations based on the agreement in Stockholm.

However, after Japan announced its autonomous measures against North Korea, following the nuclear test in January and the launch of a ballistic missile in February, the Special Investigation Committee announced in February 2016 that it would totally stop the investigations on all Japanese nationals including abductees and dissolve the Committee. Japan strongly protested against North Korea and conveyed its intention of not abandoning the agreement in Stockholm. In addition, Japan strongly demanded that North Korea return all the abductees home in accordance with the agreement in Stockholm at the earliest possible date.

(C) Partnerships with the international community

Japan takes all possible opportunities to raise the abductions issue and other issues concerning North Korea, including at summit meetings, foreign ministers’ meetings, and international conferences, and has succeeded in gaining the understanding and cooperation of other countries.

At the Japan-U.S. summit meeting held in April 2015, they confirmed that Japan, the U.S. and the ROK would continue to work closely on the North Korean nuclear and missile issues. On the abductions issue, President Obama expressed his understanding and support for Japan. Even since then, Japan has taken a variety of opportunities, including the Japan-U.S. summit meeting held on the occasion of the APEC Leaders’ Meeting in November, to confirm cooperation between Japan and the U.S. and among Japan, the U.S. and the ROK.

Japan, the U.S. and the ROK took the opportunity of the UN General Assembly held in September to hold a Japan-U.S.-ROK Trilateral Foreign Ministers’ Meeting in New York, at which the three Ministers reconfirmed the importance of even closer cooperation on issues regarding North Korea. Moreover, Minister Kishida explained the current status of Japan-North Korea relations and confirmed that the three countries would continue close cooperation for the resolution of humanitarian issues including the abductions issue. Japan, the U.S. and the ROK have held a trilateral vice ministers’ meeting since April 2015. At the 2^nd meeting held in Tokyo immediately after North Korea’s nuclear test in January 2016, they confirmed close cooperation among the three countries. In response to repeated provocations by North Korea, such as the nuclear test in January 2016 and the launch of a ballistic missile in February, Japan conducted telephone talks with the U.S., the ROK and other relevant countries to confirm close cooperation.

Leaders’ Declaration issued at the G7 Summit in Germany in June 2015 strongly condemned North Korea’s continued development of nuclear and missile programs, as well as its appalling human rights violations, and its abductions of nationals from other countries. At the East Asia Summit (EAS) (in Malaysia) and Japan-ASEAN summit meeting (in Malaysia) held in November 2015, the importance of addressing humanitarian concerns including the abductions issue was emphasized in respective Chair’s statements. Aside from the above, in a joint statement issued on the occasion of Japan-Australia summit meeting held in December, it was confirmed the two countries would urge North Korea to address urgently the humanitarian concerns including the abductions issue.

The Resolution on the Situation of Human Rights in the DPRK co-tabled by Japan and the European Union (EU) was adopted at the Human Rights Council in March 2015 (for the eighth time in eight consecutive years). Furthermore, the Resolution on the Situation of Human Rights in the DPRK, which contains stronger contents based on the Resolution adopted by the Human Rights Council in March, was adopted by majority vote at the plenary session of the UN General Assembly in December (for the eleventh time in eleven consecutive years)⁴. On December 10 (New York time), the Security Council Meeting on the “Situation in the DPRK” was convened for two years in a row, and a comprehensive discussion was carried out on the situation in North Korea, including human rights.

Furthermore, a bill concerning abductions was submitted to the U.S. Congress. Given the rising awareness of the international community about the abductions issue, Japan will make its utmost efforts for an early resolution of the abductions issue in close coordination and cooperation with relevant countries concerned.

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• 4 The resolution condemns North Korea’s systematic, widespread and gross violations of human rights and strongly urges North Korea to end all human rights violations. On top of that, Japan has been urging North Korea to implement the recommendations of the UN Commission of Inquiry (COI) without delay. Moreover, it encourages the Security Council to continue to consider the recommendations of the COI and to take appropriate action, including through consideration of referral of the situation in North Korea to the International Criminal Court (ICC) and consideration of the scope for effective targetd sanctions against those who appear to be most responsible for acts that the COI has said may constitute crimes against humanity.

D. Cooperation with and efforts by the international community

Regarding the relationship between the U.S. and North Korea, on a statement issued by a spokesman of the General Staff Department of the KPA on March 2, 2015 to protest the U.S.-ROK joint military exercises, North Korea asserted that “It is the resolute determination we have chosen to accelerate a final destruction of the U.S. Empire and its follow-up forces in a conventional war if they provoke a war of aggression by means of regular armed force, and in our powerful nuclear strike (omitted) if they provoke a war of aggression by means of nuclear armed force.”

Meanwhile, North Korea continues to appeal to the U.S., claiming that replacement of the armistice agreement by a peace treaty must precede all problems to break the vicious cycle of intensified confrontation and tension in the Korean Peninsula, including in a speech given by Foreign Minister Ri Su-Yong at the UN General Assembly in October and a statement issued by the Ministry of Foreign Affairs (dated October 14).

Regarding the relationship between the ROK and North Korea, according to the ROK-North Korea joint press statement⁵announced in response to the shelling incident in the DMZ in August 2015, a reunion project for war-separated families was conducted at Mt. Geumgang in October 2015, the 2^nd reunion held under the Park Geun-Hye administration, and a North-South meeting of vice-ministerial level officials was held at the Gaeseong Industrial Complex in December, which ended up with no special announcement of agreement. In February 2016, the ROK government announced a full suspension of the Gaeseong Industrial Complex as a countermeasure for the nuclear test in January and the ballistic missile launch in February. It also explained that North Korea exploited the ROK government’s past efforts so as to sophisticate nuclear weapons and long-range missiles. In response to this, North Korea expelled South Korean nationals from the industrial complex and declared that it would put the industrial complex under military control.

Regarding the relationship between China and North Korea, the exchanges at government and party levels were fewer than those in the Kim Jong-Il era, but Liu Yunshan, a Politburo Standing Committee member of the Communist Party of China attended the ceremony commemorating the 70^th anniversary after foundation of the WPK held on October 10, 2015. He met with the First Chairman of the NDC Kim Jong-Un and transmitted a personal letter from President Xi Jinping. They also exchanged views on the future development of China-North Korea relationship.

Regarding the relationship between Russia and North Korea, the First Chairman of the NDC Kim Jong-Un did not attend the ceremony commemorating the 70^th anniversary after the victory of the “Great Patriotic War” in May 2015. Instead, Kim Yong-Nam, the Presidium of the Supreme People’s Assembly attended the ceremony. The year 2015 also marked the Russia-North Korea Frendship Year. Thus frequent mutual visits by high-ranking officials were observed.

Defectors who have fled from North Korea have to be kept in hiding to avoid being rounded up by the authorities in the countries where they are staying and forcibly repatriated to North Korea. The Government of Japan is addressing the protection and support of these North Korean defectors, in light of the purpose of the North Korean Human Rights Violation Act, taking into account a comprehensive range of factors, including humanitarian considerations, the safety of those concerned, and relations with the countries in which these defectors reside. Relevant Japanese ministries and agencies are working together closely to promote measures aimed at helping those defectors accepted by Japan to become settled here.

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• 5 Points of the ROK-North Korea joint press statementare are as follows: (1) Talks between authorities to improve the North-South relations will be held in Seoul or Pyongyang at an early date; (2) North Korea will express regret for the fact that ROK soldiers suffered injuries due to the mine explosion; (3) The ROK will suspend all propaganda broadcasts along the Military Demarcation Line from noon, August 25, unless an abnormal case occurs; (4) North Korea will lift the semi-war state; (5) The ROK and North Korea will arrange reunions for war-separated families on the occasion of Chuseok (Lunar Bon in Japan: September 27) and continue to do so in the future. A working-level contact by the Red Cross will take place early in September; (6) North Korea and the ROK will revitalize private sector exchanges in various fields.

(2) Republic of Korea (ROK)

A. Situation in the ROK

(a) Domestic affairs

In 2015, President Park Geun-Hye celebrated the 3^rd year after inauguration, announcing the 4^th national discourse after she took office, entitled “Necessity of 4 major reforms and request for public cooperation,”⁶ and asked for public understanding and cooperation for a significant re-launch of the Korean economy.

In February, the approval rating of the Park Geun-Hye administration fell to its lowest since she took office, due to public discontent against the year-end tax adjustments directly linked to people’s lives. In May, the president’s initial response was criticized as inadequate after a person infected with MERS (Middle East Respiratory Syndrome) was first discovered in the ROK. Consequently, her approval rate fell again.

However, the approval rate was restored again in September, because the increased military tension between the ROK and North Korea caused by the mine explosion and the shelling in the inter-Korea demilitarized zone were relieved by the realization of an agreement through the contact between their high-ranking officials, and because President Park Geun-Hye visited China.

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• 6 The past public discourses include a public discourse on government reorganization plan (March 4, 2013), Three Year Plan for Economic Innovation (February 25, 2014) and a public discourse on the Sewol accident (May 19, 2014).

(b) Foreign policy

Advocating diplomacy based on “trust and principle,” President Park’s priority is to gain support for the “Northeast Asia Peace and Cooperation Initiative”⁷and the “Trust-Building Process on the Korean peninsula.”⁸ In 2015, the president set the following three major goals: “Leading change in the situations on the Korean Peninsula and in its surrounding region,” “Building “trust” infrastructure for a peaceful unification of the Korean Peninsula” and “Strengthening the global network for unification.”

Regarding the relations with the U.S., President Park Geun-Hye visited the U.S. in October to hold the 4^th U.S.-ROK summit meeting, where she emphasized the strong U.S.-ROK alliance, such as through the announcement of a joint statement against North Korea.

Regarding the relationship with China, President Park Geun-Hye visited China in September 2015 to attend the ceremony celebrating the 70^th anniversary of victory against Japan, and conducted a ROK-China summit meeting with President Xi Jinping. In December, the Free Trade Agreement (FTA) with China entered into force. The ROK is strengthening the economic relationship with China.

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• 7 This initiative seeks to create a framework for multilateral dialogue in Northeast Asia, starting by launching dialogue and cooperation in fields where this is possible and building up trust, with a view to extending this cooperation to other fields, including security.
• 8 This initiative aims to develop north-south relations, establishing peace on the Korean Peninsula and laying the groundwork for Korean unification, by means of building trust between the two Koreas based on a solid foundation of security.

(C) Economy

In 2015, the ROK recorded a real GDP growth rate of 2.6%, down from the previous year’s rate of 3.3%. Its exports were worth approximately 527.2 billion US dollars in total, down 7.9% compared with the previous year, while its imports totaled around 436.8 billion US dollars, down 16.9% on the previous year, leading to a trade surplus of approximately 90.4 billion US dollars (figures published by the ROK Ministry of Trade, Industry and Energy Statistics).

In terms of domestic economic policy, “Four Major Reforms” were raised after the “Three Year Plan for Economic Innovation” announced in February 2014, thereby promoting structural reforms in the public sector as well as the labor, education and financial sectors. In the field of international trade, the government announced a “New FTA Promotion Strategy” which would proactively promote mega FTAs such as Trans-Pacific Partnership (TPP) Agreement and Regional Comprehensive Economic Partnership (RCEP), improve the FTAs that had been already concluded, and facilitate new FTAs aimed at the markets of emerging countries.

B. Japan-ROK Relations

(a) Bilateral relations

The year 2015 was the milestone year of the 50^th anniversary of the normalization of Japan-ROK relations. The ROK is Japan’s most important neighbor that shares strategic interests, and good Japan-ROK relations are essential in ensuring peace and stability of the Asia-Pacific region. Furthermore, Japan and the ROK have worked in partnership on a variety of regional and global issues, including nuclear disarmament and non-proliferation, peacebuilding and poverty not to mention issues involving North Korea. From now on, the Government of Japan will move toward developing a new era of future-oriented Japan-ROK relations, in all fields such as politics, economy and culture.

On June 21, Minister of Foreign Affairs, Yun Byung-Se visited Japan for the first time since taking office, and positively exchanged views with Foreign Minister Kishida on advancing the Japan-ROK relations. On June 22, events celebrating the 50^th anniversary of the normalization of Japan-ROK relations took place, and Prime Minister Abe and President Park Geun-Hye attended the events held in their respective countries, with each offering congratulatory messages.

Furthermore, on the occasion of Japan-China-ROK Trilateral Summit held in November (in Seoul), a foreign ministers’ meeting was held on November 1, and the first Japan-ROK summit meeting under the Abe administration took place between Prime Minister Abe and President Park Geun-Hye on November 2. While conducting a meaningful exchange of views on outstanding issues between the two countries, they also shared views on strengthening cooperation between Japan and the ROK in various fields, including security, people-to-people exchange and the economy, and also discussed the issues of North Korea profoundly.

Furthermore, on December 28, it was confirmed that the issue of comfort women is resolved finally and irreversibly through a Japan-ROK foreign ministers’ meeting (in Seoul) and a Japan-ROK summit telephone call. Furthermore, Prime Minister Abe and President Park confirmed that they would take responsibility as leaders to implement this agreement, and that they would deal with various issues based on the spirit of this agreement. (See “Announcement by Foreign Ministers of Japan and the Republic of Korea at the Joint Press Occasion” on page 38).

(b) Exchange

Mutual understanding and exchange between the people of both Japan and the ROK are steadily deepening and broadening. The year 2015 marked the 50^th anniversary of the normalization of Japan-ROK relations, and the governments of the two countries certified the culture and exchange programs organized by local public entities and private organizations as projects commemorating the 50^th anniversary to make the 50^th anniversary a year of a wide range of exchanges between Japan and the ROK. More than 440 programs were certified by both governments as of the end of December, and a wide-range of exchanges were performed actively.

The number of people mutually visiting the two countries, which was only about 10,000 annually immediately after the normalization of diplomatic relations, reached about 5.84 million in 2015⁹.

The Nikkan Koryu Omatsuri (Japan-Korea Festival), an annual cultural exchange event in Japan and the ROK, respectively, took place in Seoul on September 19 and 20 and in Tokyo on September 26 and 27, with attendance of 158,000 people in total.

In addition to “JENESYS (Japan-East Asia Network of Exchange for Students and Youths) 2.0,” or people-to-people exchange programs between Japan and Asia-Pacific regions, Japan made efforts to promote mutual understanding and build a friendly and cooperative relationship for the future through the promotion of “JENESYS2015.”

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• 9 Numbers of visitors in 2015. Visitors from the ROK to Japan: 4,002,100 (figures published by the Japan National Tourist Organization (JNTO)); visitors from Japan to the ROK: 1,837,782 (figures published by the Korea Tourism Organization (KTO)).

(c) Takeshima dispute

Regarding a dispute between Japan and the ROK concerning the territorial sovereignty over Takeshima, Japan has consistently held the position that Takeshima is indisputably an inherent part of the territory of Japan in light of historical facts and based on international law. Japan has been mobilizing various media to keep the rest of the world informed about Japan’s position on the Takeshima dispute¹⁰, and has lodged repeated protests against the ROK over such matters as landing on the island by members of the ROK’s National Assembly and others, the ROK’s holding of military exercises and the construction of building. Japan has been making various efforts to settle the Takeshima dispute in a peaceful manner in accordance with international law, including proposing to the ROK a referral on the issue to the International Court of Justice three times (September 1954, March 1962 and August 2012). Japan will continue to make diplomatic efforts tenaciously.

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• 10 In February 2008, the Ministry of Foreign Affairs created a brochure entitled “Takeshima: 10 points to understand the Takeshima dispute.”Currently, available on the MOFA website in 11 languages (Japanese, English, Korean, French, German, Spanish, Portuguese, Arabic, Russian, Chinese and Italian).Also, since October 2013, videos, flyers and pamphlets concerning about Takeshima have been published made public on the MOFA website and are currently available in the above 11 languages.Furthermore, efforts are being made to develop an App explainng the Takeshima dispute that can be downloaded.

(D) The issue of comfort women

It was confirmed that the issue of comfort women, a long-standing issue over many years between Japan and the ROK, is resolved finally and irreversibly based on the agreement reached at Japan-ROK Foreign Ministers’ Meeting on December 28, 2015 (See “Announcement by Foreign Ministers of Japan and the Republic of Korea at the Joint Press Occasion” on page 38). During a subsequent Japan-ROK summit telephone call, they confirmed and appreciated the agreement. Furthermore, the leaders of both Japan and the ROK confirmed that they would take responsibility as leaders to implement this agreement, and that they would deal with various issues based on the spirit of this agreement. In light of this agreement, the Government of Japan will move toward developing a new era of future-oriented Japan-ROK relations.

(e) Other issues

With regard to matters arising from the judicial decisions in the ROK concerning “requisitioned civilians” from the Korean Peninsula¹¹, the problems concerning property and claims between Japan and the ROK were settled completely and finally through the Agreement on the Settlement of Problems concerning Property and Claims and on Economic Co-operation between Japan and the Republic of Korea, so Japan will continue to deal appropriately with these issues on that basis.

Concerning the issue over the former Sankei Shimbun Seoul bureau chief indicted without arrest for defamation, the Seoul Central District Court delivered a judgment of acquittal and, after a few days, the judgment was established.

Other than these issues, Japan is providing as much support as possible from a humanitarian perspective in a wide range of fields including the issue of remains of people originally from the Korean Peninsula¹², support for ethnic Koreans in Sakhalin¹³, addressing the issue of atomic bomb survivors living in the ROK¹⁴ and helping Hansen’s disease patients admitted to sanitariums in the ROK¹⁵.

Moreover, Japan and the ROK have engaged in several rounds of negotiations over the delimitation of the Exclusive Economic Zone (EEZ).

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• 11 Some civilians of the ROK said to have been subjected to “forced requisition” by predecessor companies of Nippon Steel & Sumitomo Metal Corporation and Mitsubishi Heavy Industries, Ltd. during World War II, when the Korean Peninsula was under Japanese rule, brought claims for the payment of compensation and unpaid wages against the two companies. The Seoul High Court found in favor of the plaintiffs against Nippon Steel &Sumitomo Metal Corporation on July 10, 2013, and the Busan High Court ruled against Mitsubishi Heavy Industries, Ltd. on July 30, with both courts ordering the perspective defendants to compensate the plaintiffs.
• 12 The issue of the return of the remains of people originally from the Korean Peninsula which were left in Japan after the end of World War II. Japan is steadily repatriating the remains whose return has been requested by the Government of the ROK and which are able to be returned.
• 13 For various reasons, before the end of the World War II, the people from the Korean Peninsula traveled to what was then known as Minami Karafuto (South Sakhalin), but were compelled to remain there for a long time after the war ended under the de facto rule of the Soviet Union, without being given the opportunity to return to the ROK. The Government of Japan is providing such people with support to enable them to return home temporarily or permanently, and also to visit Sakhalin.
• 14 The issue of provision of support to those who were exposed to the atomic bombs while living in Hiroshima or Nagasaki during World War II , and subsequently went to live overseas. To date, Japan has provided support in the form of the Atomic Bomb Victim Health Handbook and allowances based on the Atomic Bombs Survivors’ Assistance Act.
• 15 People who were admitted to Hansen’s disease sanatoriums built overseas by Japan before the end of the war had demanded the payment of compensation in accordance with the Act on Payment of Compensation to Inmates of Hansen’s Disease Sanatorium. The Act was revised in February 2006, allowing compensation to be paid to those formerly resident in sanatoriums overseas for the first time.

C. Japan-ROK economic relations

Japan and the ROK continue to maintain close economic relations. The total value of trade between Japan and the ROK in 2015 was approximately 8.57 trillion yen. Japan is the ROK’s 3^rd-largest trading partner and the ROK is Japan’s 3^rd-largest trading partner. The ROK’s trade deficit with Japan increased by approximately 8.4% compared with the previous year to about 2.09 trillion yen (Trade Statistics of Japan, Ministry of Finance). In terms of the value of investment between Japan and the ROK, Japanese direct investment in the ROK totaled approximately 1,670 million U.S. dollars (down 33.1% from the previous year) (figures published by the ROK Ministry of Trade, Industry and Energy), making Japan the ROK’s 3^rd-largest source of foreign direct investment. Direct investment in Japan from the ROK totaled approximately 580 million U.S. dollars (up 38.6% from the previous year) (figures published by the Export-Import Bank of Korea (KEXIM) ).

Thus, Japan and the ROK are important trade and investment partners for each other and progress is being made in forging new cooperative relationships between the two countries. For example, as well as the integration of supply chains in the manufacturing sector, Japanese and the ROK companies are undertaking joint initiatives focused on expansion into other countries.

Japan believes that economic partnership between Japan and the ROK is vital in order to further strengthen these close economic relations between the two countries, as well as to ensure that both Japan and the ROK can play a leading role in regional economic integration in Asia. Based on this understanding, Japan and the ROK continue to strive to achieve progress in negotiations concerning Japan-China-ROK Free Trade Agreement (FTA) and the Regional Comprehensive Economic Partnership (RCEP).

In addition, at the 14^th Japan-ROK High-level Economic Consultation held in January 2016, in order to further strengthen economic relations, between Japan and the ROK, the two countries exchanged opinions concerning a wide range of subjects, including the economic climate in Japan and the ROK and economic relations between them, as well as the global economic situation and cooperation within multilateral and regional frameworks.

In the environmental field, the 17^th Japan-ROK Joint Committee on Environmental Cooperation was held in May. The two sides exchanged views on climate change, biodiversity and marine environmental issues and confirmed that Japan and the ROK will closely cooperate on these subjects.

With respect to the issue of restrictions by the ROK on imports of Japanese marine products, a Dispute Resolution Sub-Committee was established within the WTO in September 2015, in response to Japan’s request. In this regard, Japan has been taking various opportunities to request the ROK to repeal the increased restriction measures promptly subject to the WTO rules.