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 of concern such as the abductions, nuclear and missile issues, as well as settlement of the unfortunate past in accordance with the Japan-DPRK Pyongyang Declaration of September 2002, while working closely with relevant countries, including the U.S., the ROK, China and Russia.

North Korea's build-up of its nuclear and missile capabilities poses an unprecedented, grave and imminent threat towards the peace and stability of Japan and the international community. In order to urge North Korea to change its policies, Japan is cooperating closely with the U.S. and the ROK and coordinating with relevant countries including China and Russia to maximize pressure on North Korea by all available means including the full implementation of the UN Security Council resolutions. With regard to the abductions issue, Japan continues to call on North Korea to implement the May 2014 Japan-North Korea agreement (the agreement in Stockholm) and to press North Korea for the early resolution of the abductions issue through leveraging the international community's pressure on North Korea.

A North Korea Nuclear and Missile Issues

The nuclear and missile development by North Korea is a clear violation of a series of relevant UN Security Council resolutions and challenge to the international disarmament and non-proliferation regime, and is totally unacceptable. In spite of the fact that the international community, including Japan, has repeatedly and strongly pressed North Korea for its self-restraint, North Korea has continued its nuclear and missile development. Since January 2016, North Korea has conducted three nuclear tests and may have reached the stage, being able to produce miniaturized nuclear warheads. North Korea has also launched as many as 40 ballistic missiles.

Between February and May 2017, on nine separate occasions, North Korea launched a total of 12 ballistic missiles. Four of them fell within Japan's exclusive economic zone (EEZ). In response, the UN Security Council adopted Resolution 2356 in June. However, in July, North Korea launched two ballistic missiles with an intercontinental ballistic missile (ICBM) range both of which landed within Japan's EEZ. In response to these provocative actions by North Korea, the Government of Japan took further autonomous measures against North Korea in July and August, designating additional entities subject to asset freezing measures. The UN Security Council also adopted Resolution 2371, which included measures such as a total ban on the import of coal from North Korea. On August 29 and September 15, North Korea launched two ballistic missiles that flew over Japan and, in September, North Korea carried out the sixth nuclear test, which was the first nuclear test since September 2016 and the scale of which is estimated to be the largest in its history. In September, the UN Security Council adopted Resolution 2375, which included measures that restrict the supply of oil related products and ban providing work authorizations to North Korean overseas workers. North Korea also launched a ballistic missile with an intercontinental ballistic missile (ICBM) range in November, which landed within Japan's EEZ, demonstrating that North Korea had continued its nuclear and missile development over the past 75 days since the previous launch. In response, Japan implemented further autonomous measures against North Korea in November and December, and Resolution 2397 was adopted by the UN Security Council in December.

Among the four UN Security Council resolutions adopted in 2017 in response to North Korea's nuclear and missile development, Resolution 2397, which was adopted unanimously at the UN Security Council session chaired by Japan in December, further enhanced the sanctions measures against North Korea to an unprecedented level and virtually eradicated North Korea's foreign currency revenues through export. Specifically, the Resolution included provisions for further restriction on the supply in the oil sector, imposition of stricter procedures through the establishment of reporting obligations, the repatriation of North Korean overseas workers within 24 months and severer measures related to maritime transport.

With the implementation of four autonomous measures between July and December 2017, Japan designated 104 organizations and 110 individuals subject to asset freezing measures.

As North Korea continues to take provocative actions, in disregard of the protests and warnings of the international community, on December 15, as the chair of the UN Security Council, Japan hosted the UNSC Ministerial-Level Meeting on the North Korean issue. Foreign Minister Kono emphasized that full implementation of the UN Security Council resolutions is essential and that it is necessary to make North Korea change its policies by maximizing pressure on North Korea. As international community's pressure on North Korea increases, in his new year's address in January 2018, the Chairman of State Affairs Commission Kim Jong-un stated that the “historic accomplishment of finalizing national nuclear capabilities” was achieved and declared his intention to continue nuclear and missile development. The Co-chairs' summary of the Foreign Ministers' Meeting on Security and Stability on the Korean Peninsula, held in Vancouver on January 16, 2018, confirmed that continued pressure will be exerted on North Korea until it changes its policies and takes decisive and irreversible steps to denuclearize. Foreign Minister Kono visited the ROK on April 10 and 11, 2018, and reaffirmed close coordination of their policies towards the Inter-Korean Summit and the U.S.-North Korea Summit. Following Foreign Minister Kono's visit to the U.S. in March, Prime Minister Abe visited the U.S. for the Japan-U.S. Summit Meeting on April 17 and 18. The leaders conducted concrete and in-depth discussion on the close coordination of their policies and reaffirmed that they will work absolutely together. They also reaffirmed that North Korea needs to abandon all weapons of mass destruction and ballistic missile programs in a complete, verifiable and irreversible manner.

It is crucial that the international community responds to North Korea's sanctions evasion and ensures the effectiveness of the UN Security Council resolutions. As part of the Japan Coast Guard's patrolling activities and the Self Defense Force's surveillance activities, Japan has been conducting information gathering on the activities of vessels suspected to be violating the UN Security Council resolutions. When the Government of Japan strongly suspects that ship-to-ship transfers with North Korean vessels banned by the UN Security Council resolutions are conducted, Japan has been taking measures such as notification to the Security Council Committee established pursuant to Resolution 1718, sharing of information with related countries, and releasing of information to the public. In January and February 2018, Japan revealed four cases to the public through the Ministry of Foreign Affairs (MOFA) website and through other media.

B The Abductions Issue

(A) Basic Position

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 eight of these 12 abductees have died and that it is unable to confirm that the other four 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 whereabouts 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 its relations with North Korea is impossible without resolving the abductions issue, Japan has positioned its resolution as the most important issue. Accordingly, Japan has strongly urged North Korea to provide a full account of all the abduction cases, to hand over the perpetrators to Japan, and to ensure the safety of all abductees and their immediate return to Japan, irrespective of whether the abductees are officially identified.

(B) Initiatives by Japan

Following the nuclear test by North Korea in January 2016 and the launch of the ballistic missile in the following month which North Korea purported to be a “satellite,” Japan announced its autonomous measures against North Korea in February 2016. In response, North Korea unilaterally announced that it would completely stop the investigations on all Japanese nationals and dissolve the Special Investigation Committee. Japan lodged a serious protest against North Korea, conveyed its intention of not abandoning the agreement in Stockholm, and strongly demanded that North Korea implement the agreement and return all the abductees home at the earliest possible date. During the ASEAN-related Foreign Ministerial Meeting held in the Philippines in August 2017, Foreign Minister Kono had contact with the North Korean Minister of Foreign Affairs Ri Yong-ho and raised the issue of the abductions and security including North Korea's nuclear and missile development and conveyed Japan's basic position. During the reception of the Pyeongchang Olympic Winter Games Opening Ceremony hosted by President Moon Jae-in, on February 9, 2018, Prime Minister Abe brought up the abductions, nuclear and missile issues and conveyed Japan's basic position to Kim Yong-nam, the President of the Presidium of the Supreme People's Assembly of North Korea. Prime Minister Abe strongly urged North Korea to resolve the abductions issue, especially the return of all abductees to Japan.

In July, August, November, and December 2017, Japan also announced the introduction of further autonomous measures against North Korea toward the comprehensive resolution of outstanding issues of concern, such as the abductions, nuclear and missile issues.

(C) Cooperation with the International Community

Japan has taken all possible diplomatic opportunities to raise the abductions issue and other issues concerning North Korea, including at summit meetings, foreign ministers' meetings and international conferences such as the G7 Taormina Summit in Italy, Japan-U.S.-ROK trilateral Summit Meetings and Foreign Ministers' Meetings, ASEAN-related Summit Meetings, and UN Security Council Ministerial-Level Meetings, and succeeded in gaining understanding and support of other countries. Japan will continue to work with the international community to urge North Korea to take concrete measures.

At the UN, 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 2017 and the UN General Assembly in December 2017. (The resolution has been adopted in the Human Rights Council for the tenth time in ten consecutive years and adopted at the UN General Assembly for the 13th time in 13 consecutive years). At the UN Security Council meeting on the situation in the DPRK, held for four consecutive years, the participating countries expressed serious concerns about human rights violations in North Korea, including the abductions issue, and sent a clear message to North Korea, urging North Korea to improve the situation. Furthermore, the unanimous adoption of UN Security Council Resolutions 2371, 2375, and 2397 demonstrated strong concerns of the international community, including the UN Security Council, about the issue of human rights in North Korea including the abductions issue.

As for the U.S., President Trump referred to Megumi Yokota, one of the abductees, in his address at the UN General Assembly in September 2017. During his visit to Japan in November 2017, President Trump, together with Prime Minister Abe and Minister in Charge of the Abductions Issue Katsunobu Kato, met with the family members of the abductees and stated that he will work together towards the resolution of the abductions issue. The abductions issue was also raised at the Foreign Ministers' Meeting on Security and Stability on the Korean Peninsula held in Vancouver, Canada, in January 2018, and the reference was made in the Co-chairs' summary. In response to the request by Prime Minister Abe during the Japan-U.S. Summit Meeting held on April 17 and 18, 2018, the two leaders agreed that the abductions issue will be raised during the U.S.-North Korea Summit Meeting.

Japan will continue to closely coordinate and cooperate with relevant countries, including the U. S. toward the early resolution of the abductions issue.

C North Korea's External Relations, etc.

(A) U.S.-North Korea Relations

Since the inauguration of the Trump administration in 2017, the U.S. has been increasing its pressure on North Korea under the policy that “all options are on the table.” The U.S. introduced sanctions measures on North Korea in January, April, June, August, September, October and November 2017, as well as in February 2018, for North Korea's involvement in human rights violations and proliferation of weapons of mass destruction. The sanctions targeted entities and individuals in North Korea, as well as those in third countries, including Russia and China. Furthermore, in November 2017, the U.S. decided to redesignate North Korea as a state sponsor of terrorism.

Furthermore, the U.S. has declared that it will maintain its defense commitments to Japan and the ROK, including the provision of extended deterrence. In September 2017, the U.S. completed the installation of six launch pads for the Terminal High Altitude Area Defense (THAAD) system in the ROK and began to operate. In November, three U.S. aircraft carriers were deployed to the Sea of Japan, displaying strong commitment by the U.S. to the peace and stability of the region.

On March 6, 2018, Chairman Kim expressed his willingness to the special envoy from the ROK that he wishes to meet President Trump soon. In response, on March 9, President Trump expressed his intention to hold a U.S.-North Korea Summit Meeting by the end of May.

(B) Inter-Korean Relations

Under the Park Geun-hye administration, the ROK increased pressure on North Korea, including by the total shutdown of the Gaesong Industrial Complex, and thus inter-Korean talks and interactions were not active. However, the Moon Jae-in administration inaugurated in May 2017 showed willingness to improve inter-Korean relations. Specifically, President Moon Jae-in announced “the Korean peninsula peace initiative” in his speech in Berlin in July 2017 and proposed (1) the resumption of the reunions of separated families and revisits to ancestral graves, and holding of Inter-Korean Red Cross talks to this end, (2)North Korea's participation in the Pyeongchang Winter Olympic Games, (3) the mutual cessation of hostile action along the Military Demarcation Line, and (4) the resumption of inter-Korean exchanges and dialogue. However, North Korea did not respond immediately. In the meantime, the ROK is maintaining pressure on North Korea, while closely coordinating with both Japan and the U.S., through such measures as a U.S.-ROK joint military exercise in August, the deployment of six launch pads for the THAAD system in September, and the imposition of autonomous measures on North Korea in November and December.

In the New Year's Address on January 1, 2018, Chairman Kim made reference to the improvement of inter-Korean relations and the dispatch of the delegation to the Pyeongchang Winter Olympic Games. Furthermore, against this backdrop, the Inter-Korean High Level Official Meeting was held on January 9, where both sides agreed on several issues including (1) North Korea's participation in the Pyeongchang Winter Olympics Games, (2) holding of an inter-Korean meeting between the military authorities, and (3) promoting contact, interaction, movement and exchanges of people in a variety of fields.

North Korea dispatched Kim Yong-nam, Presidium of the Supreme People's Assembly of North Korea, and Kim Yo-jong, the Deputy Director of the Workers' Party of Korea Propaganda and Agitation Department among others, along with the athletes to represent North Korea at the Opening Ceremony of the Pyeongchang Winter Olympic Games. On February 10, President Moon Jae-in held a meeting with the delegation, where Deputy Director Kim Yo-jong delivered a letter from Chairman Kim in which Chairman Kim's willingness to improve inter-Korean relations was expressed. She also conveyed a message of invitation from Chairman Kim that he is ready to meet President Moon soon and that he would like to request President Moon to visit North Korea whenever it is convenient for the President.” In response, President Moon stated that he would like to achieve a success by setting an appropriate condition. In particular, President Moon stated that early dialogue between North Korea and the U.S. is necessary for the improvement of inter-Korean relations and called on North Korea to engage in dialogue with the U.S. more proactively.

On March 6, 2018, President Moon Jae-in's special envoy was sent to Pyongyang to attend a meeting with Chairman Kim. On the same day, the Presidential Executive Office of the ROK announced that both sides made it clear that they will hold the 3rd Inter-Korean Summit in Panmunjom at the end of April. On March 12, Mr. Seo Hoon, Director of the National Intelligence Service of the ROK visited Japan to give a detailed explanation about the discussion between the ROK's special envoy and North Korea, and Japan and the ROK closely coordinated their future policies.

At the Inter-Korean High Level Officials' Meeting on March 29, both sides agreed that they will hold an Inter-Korean Summit at the Peace House on the South Korean side of Panmunjom on April 27.

(C) China-North Korea Relations

In November 2017, Song Tao, Minister of the International Department of the Communist Party of China visited North Korea as General Secretary Xi Jinping's special envoy. Following the visit, from March 25 to 28, 2018, Chairman Kim visited China to hold a China-North Korea Summit for the first time with President Xi Jinping.

China has kept close economic ties with North Korea. For example, trade between China and North Korea accounts for approximately 90% of North Korea's entire external trade excluding inter-Korean trade. However, at the same time, China has agreed on a series of UN Security Council Resolutions, issuing a number of notices by the Ministry of Commerce. The Ministry of Commerce has adopted specific measures including bans and restrictions on imports and exports of designated items in order to implement the relevant UN Security Council resolutions.

(D) Other Countries

In 2017, a total of 104 drifting or wrecked wooden vessels presumed to be from North Korea were discovered (66 in 2016). In November 2017 in particular, eight and ten survivors were discovered in Yurihonjo City of Akita Prefecture and Matsumaekojima Island of Hokkaido respectively. Japan extradited the survivors to North Korea in accordance with the relevant laws and regulations working closely with relevant government agencies in both cases.

D Domestic Political Affairs and Economy

(A) Political Affairs

In North Korea, the power base of the regime centered on Kim Jong-un, the Chairman of the State Affairs Commission is being enhanced. In May 2016, the seventh Party Congress of the Workers' Party of Korea was held, and the “byungjin policy,” under which North Korea simultaneously pursues economic construction and the build-up of nuclear armed forces, was positioned as a permanent strategic policy. At the same time, the National Five-Year Strategy for Economic Development (2016-2020) was announced. Furthermore, through the revision of the party constitution, the post of Chairman of the Party was newly established and, Kim Jong-un, First Secretary of the Party, was appointed as the Chairman of the Party, establishing a new party structure centered on Chairman Kim. Moreover, in June 2016 the same year, the Fourth Session of the 13th Supreme People's Assembly was held. The National Defense Commission (NDC) was reorganized into the State Affairs Commission, and Kim Jong-un, First Chairman of the NDC, was appointed as Chairman of the State Affairs Commission.

A plenary session of the Central Committee of the Workers' Party of Korea was held in October 2017, and the “byungjin policy,” the policy of the simultaneous pursuit of economic construction and the build-up of nuclear armed forces, was firmly reconfirmed.

(B) Economy

For North Korea, the rebuilding of its economy is regarded as an issue of great importance. In 2017, as North Korea continued its nuclear and missile development, it is believed that a series of UN Security Council Resolutions, virtually eradicating North Korea's foreign currency earnings from exports, will severely damage the country's economy. Under these conditions of economic hardship as the result of sanctions and economic blockades imposed by the international community, Chairman Kim expressed his intention to improve and raise the standard of living of the people in his New Year's Address in January 2018, as North Korea entered the third year of its national five-year strategy for economic development.

Meanwhile, North Korea's economic growth rate in 2016 was 3.9% (Bank of Korea estimate), recovering from the negative growth of -1.1% in the previous year. Increased production in agriculture, forestry and fisheries industries, mining and manufacturing industry, electricity, gas and water industries, and other infrastructure industries is considered to have contributed to this growth.

Trade with China continues to account for the largest share of North Korea's external trade. In 2016, the total value of North Korea's external trade (excluding inter-Korean trade) was 6.25 billion US dollars (Korea Trade-Investment Promotion Agency (KOTRA) estimate), of which trade with China accounted for over 90%.

E Other Issues

Defectors who have fled North Korea have to be kept in hiding to avoid being cracked down by the authorities in the countries where they are staying or being forcibly repatriated to North Korea. The Government of Japan is addressing the protection of and support for these North Korean defectors, in line with 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 ministries and agencies in Japan are working together closely to promote measures aimed at helping the defectors accepted by Japan to become settled.

(2) Republic of Korea (ROK)

A Japan-ROK Relations

(A) Bilateral Relations

The partnership and cooperation between Japan and the ROK are essential in ensuring the peace and stability of the Asia-Pacific region. Furthermore, Japan and the ROK have worked together on a variety of regional and global issues, including nuclear disarmament, non-proliferation, peacebuilding, poverty reduction, in addition to dealing with issues related to North Korea. The Government of Japan will continue to develop a good understanding of each other at a variety of levels in all fields such as politics, economy and culture and move toward developing a new era of future-oriented Japan-ROK relations based on mutual trust.

At a time when the enhancement of nuclear and missile capabilities by North Korea constitutes an unprecedented, grave and imminent threat to Japan and the entire international community, coordination between Japan and the ROK as well as between Japan, the ROK and the U.S. regarding North Korea issues has become more important than ever before. In response to the nuclear test on September 3, 2017 and repeated launches of ballistic missiles by North Korea, Japan and the ROK promptly held teleconferences between their top leaders and Foreign Ministers, in which they confirmed the close coordination between the two as well as between Japan, the ROK and the U.S.

After the inauguration of the Moon Jae-in administration in May 2017, Japan-ROK Summits were consecutively held in Hamburg, Germany in July, and Vladivostok, Russia in the following September. Moreover, Foreign Minister Kang Kyung-wha visited Japan for the first time after the appointment as Foreign Minister, from December 19 to 20, and held a Japan-ROK Foreign Ministers' Meeting with Foreign Minister Kono.

Upon his visit to Pyeongchang to attend the Pyeongchang Olympics Opening Ceremony, Prime Minister Abe held a Summit Meeting with President Moon Jae-in. Prime Minister Abe gave a clear and detailed explanation of Japan's position to President Moon Jae-in, stating that the comfort women issue is “resolved finally and irreversibly” and that the agreement between the two countries, is a foundation of bilateral ties. Both sides shared the recognition that the two leaders must build future-oriented bilateral relations. With regards to the issue concerning North Korea, Prime Minister Abe conveyed a clear message to President Moon Jae-in that dialogue for the sake of dialogue is meaningless. Moreover, the two leaders shared the view to maximize pressure on North Korea through close coordination between Japan, the ROK and the U.S., in order to make North Korea change its policies and seek dialogue from its end.

(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 50th anniversary of the normalization of Japan-ROK diplomatic relations, and a wide range of exchanges were actively conducted between the two countries. In Japan, K-POP and South Korean TV dramas, etc., are widely accepted by people of all ages. Japanese culture such as the manga, anime, and novels of Japan in particular has become popular in the ROK.

Furthermore, the number of people traveling between the two countries has grown from around 10,000 people a year at the time that diplomatic relations were normalized to approximately 9.45 million people a year in 2017, the highest number ever recorded⁷.

The Nikkan Koryu Omatsuri (Japan-Korea Festival), an annual cultural exchange event in Japan and the ROK, took place in Tokyo on September 23 and 24 and in Seoul on September 24.

Moreover, regarding exchanges programs between Japan and the ROK, Japan attempted to promote mutual understanding and build a friendly and cooperative relationship for the future through the promotion of Japan's Friendship Ties Programs (JENESYS 2017).

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• 7 Number of visitors in 2017: Number of people from the ROK visiting Japan: 7,140,200 people (Japan National Tourism Organization (JNTO))
  Number of people from Japan visiting the ROK: 2,311,447 people (Korea Tourism Organization (KTO))

(C) Takeshima Dispute

Regarding the dispute between Japan and the ROK concerning the territorial sovereignty over Takeshima, Takeshima is indisputably an inherent part of the territory of Japan in light of historical facts and based on international law. Japan has repeatedly made it clear that the ROK's occupation of Takeshima is illegal and has no international legal basis, Japan has been mobilizing various media to keep the rest of the world informed about Japan's position on the Takeshima dispute⁸, and has repeatedly lodged strong protests against the ROK over matters such as landings on the island by members of the ROK's National Assembly and others, the ROK's military exercises and the construction of buildings⁹. Moreover, for a peaceful settlement of the Takeshima dispute, Japan has proposed to the ROK that the Takeshima issue be refered to the International Court of Justice (ICJ) on three occasions from 1954 to present. However, the ROK has rejected three proposals in all instances. Japan is determined to continue to make persevering diplomatic efforts tenaciously to settle the Takeshima issue in a peaceful manner in accordance with international law¹⁰.

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• 8 In February 2008, the Ministry of Foreign Affairs created a pamphlet entitled “Takeshima: 10 points to understand the Takeshima Dispute.” Currently, it is available on the Ministry of Foreign Affairs website in 11 languages: Japanese, English, Korean, French, German, Spanish, Portuguese, Arabian, Russian, Chinese, and Italian. Furthermore, since October 2013, videos and flyers about Takeshima have been available on the Ministry of Foreign Affairs website and currently they are available in the above 11 languages. In addition, Japan has taken initiatives such as distributing a smartphone app providing education about the Takeshima issue.
• 9 After Moon Jae-in, former Chairman of The Minjoo Party of Korea, landed on the island in July 2016, a delegation of ten ROK parliamentarians led by Na Kyung-won, a member of the National Assembly for the Saenuri Party, landed on the island in August 2016, and Kim Kwan-yong, Governor of North Gyeongsang Province in the ROK, landed on the island in January 25, 2017. Following each of these instances, the Government of Japan immediately conveyed to the Government of the ROK that such an act was unacceptable and extremely regrettable in light of Japan's position on sovereignty over Takeshima, and strongly protested against the act.
• 10 Japan has so far proposed three times (September 1954, March 1962 and August 2012) to the ROK that the Takeshima issue be referred to the International Court of Justice.

(D) The Issue of Comfort Women

The issue of comfort women has been a major diplomatic issue in Japan-ROK relations since the 1990s, yet Japan has been sincerely dealing with this issue. The issue concerning property and claims between Japan and the ROK were legally settled in 1965 through the Agreement on the Settlement of Problems Concerning Property and Claims and on the Economic Cooperation between Japan and the ROK. However, from the perspective of facilitating feasible remedies for former comfort women, the “Asian Women's Fund” was established in 1995, which carried out medical and welfare projects and provided “atonement money” to each former comfort woman in Asian and other countries, including the ROK. In addition, successive Prime Ministers have sent letters expressing their “apology and remorse” to the former comfort women. The Government of Japan has made every effort as mentioned above. As a result of great diplomatic efforts, the Governments of Japan and the ROK confirmed that the issue of comfort women is “resolved finally and irreversibly” with the agreement reached at the Japan-ROK Foreign Ministers' Meeting on December, 2015 (See Announcement by Foreign Ministers of Japan and the ROK at the Joint Press Occasion). However, on December 30, 2016, a new comfort woman statue¹¹ was installed on the sidewalk facing the Consulate-General of Japan in Busan by a civic group in the ROK. On January 6, 2017, the Government of Japan announced measures in response to this¹². Meanwhile, on July 31, 2017, after the inauguration of the Moon Jae-in administration, the Ministry of Foreign Affairs of the ROK launched the Taskforce to Review the Agreement on Comfort Women Issue that renews the agreement reached between the Governments of Japan and the ROK at the end of 2015 under its direct supervision. The Taskforce published a report stating the results of its assessment on December 27, 2017 and in response to this, the Government of Japan issued a Statement by Foreign Minister Kono claiming that: should the Government of the ROK attempt to change the agreement which has already been implemented, the Japan-ROK relationship will become unmanageable; that such an attempt cannot be accepted under any circumstances; and that the Government of Japan will strongly urge the ROK to ensure that the Government of the ROK to steadily implement the agreement, which confirmed that the issue is “resolved finally and irreversibly.” (See “The Announcement of the Results of the Assessment by the Taskforce to Review the Agreement on Comfort Women Issue reached between the Governments of Japan and the ROK (Statement by Foreign Minister Taro Kono)) In January 2018, the Government of the ROK announced its position on the Japan-ROK agreement¹³. For the Government of Japan, it is completely unacceptable that the ROK would seek additional measures from Japan, despite the confirmation in the Japan-ROK agreement that the comfort women issue is “resolved finally and irreversibly.” The Government of Japan will continue to strongly urge the Government of the ROK to steadily implement the agreement. From these perspectives at the Japan-ROK Summit held on February 9, 2018, Prime Minister Abe stated that the Japan-ROK agreement on the comfort women issue is a commitment between the two countries, and that it is an internationally and universally recognized principle to honour such commitment regardless of change of administration. Prime Minister Abe also conveyed that the Government of Japan has been fully implementing its commitment, and that Japan expects the ROK to likewise fully implement its own commitment under the agreement, given that the ROK side has also confirmed in the Japan-ROK agreement that the comfort women issue is “resolved finally and irreversibly.”

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• 11 For the sake of practical convenience, the statues in front of the Embassy of Japan in Seoul and the Consulate-General of Japan in Busan are referred to as “comfort woman statues.” However, the use of this term is not a reflection of the recognition that these statues correctly embody the reality of those women at that time.
• 12 Specifically, the Government of Japan decided to take interim measures such as (1) postponing participation of members of the Consulate-General of Japan in Busan in municipal events in Busan; (2) temporary recall of Ambassador of Japan to the ROK Nagamine and Consul-General of Japan to Busan Morimoto; (3) suspending Japan-ROK consultations on the bilateral swap arrangement; and (4) postponing Japan-ROK high-level economic consultations.
• 13 On January 9, 2018, in announcing the ROK Government's position on the Japan-ROK agreement, Foreign Minister Kang Kyung-wha stated that the Government of the ROK “will not ask for a renegotiation with Japan,” adding that the Government of the ROK “hopes Japan on its own accord would recognize the truth as it is, and continue to strive to restore the honor and dignity of the victims and to heal their psychological scars, based on universal standards from an international perspective,” and that “what the victims seek is a voluntary and sincere apology.”

(E) Other Issues

With regard to matters arising from the judicial decisions in the ROK concerning “requisitioned civilians” from the Korean Peninsula¹⁴, Japan continued to hold the position that the 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 the Economic Co-operation between Japan and the ROK, thus Japan will continue to deal appropriately with these issues based on this position. Moreover, civic groups are currently trying to install a ”Statues of Workers” in front of the Japanese embassy in Seoul as well as Consulates General in other cities, and Japan will continue to urge the Government of the ROK to take appropriate measures to deal with the matter.

“Sea of Japan” is the only internationally established name for the sea area concerned and the United Nations and Governments of major countries such as the U.S. adopt “Sea of Japan” as its official name. Objections to this name, however, were first raised by the ROK and North Korea in 1992. Since then, the ROK and North Korea have been objecting to the name at the United Nations Conference on the Standardization of Geographical Names, the International Hydrographic Organization (IHO) and other international conferences. These assertions however are groundless, and Japan has firmly refuted these assertions each time they arise.

Furthermore, Japan has made requests to the Government of the ROK through diplomatic channels to return cultural properties that were stolen and are currently in the ROK¹⁵ to Japan as soon as possible. Japan will continue to call upon the Government of the ROK for their prompt return.

Other than these issues, Japan has provided as much humanitarian support as possible in a wide range of fields, including the issue of remains of people originally from the Korean Peninsula¹⁶, support for ethnic Koreans in Sakhalin¹⁷, addressing the issue of atomic bomb survivors living in the ROK¹⁸ and helping Hansen's disease patients admitted to sanitariums in the ROK¹⁹.

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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• 14 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 Japan's 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, and the Busan High Court ruled against Mitsubishi Heavy Industries, Ltd. on July 30, with both courts ordering the respective defendants to compensate the plaintiffs.
• 15 In April 2016, Buseoksa Temple in the ROK called for the Government of the ROK to return to Buseoksa Temple a Seated Kanzeon Bodhisattva statue, which had been stolen from Tsushima City in Nagasaki Prefecture and not returned to Japan, and filed a suit in the Daejeon District Court. On January 26, 2017 the court issued the verdict in the first instance which awarded the statue to the plaintiff (Buseoksa Temple).
• 16 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.
• 17 For various reasons, before the end of 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, and also to visit Sakhalin.
• 18 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.
• 19 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.

B Japan-ROK Economic Relations

Japan and the ROK continue to maintain close economic relations. The total value of trade between Japan and the ROK amounted to approximately 9.13 trillion yen in 2017. Japan is the ROK's third-largest trading partner and the ROK is Japan's third-largest trading partner. The ROK's trade deficit with Japan increased by approximately 23% from a year earlier, reaching 2.83 trillion yen (Trade Statistics of Japan, Ministry of Finance). Japanese direct investment in the ROK totaled approximately 1.84 million US dollars (down 47% from the previous year) (figures published by the ROK Ministry of Trade, Industry and Energy), making Japan the ROK's third-largest source of foreign direct investment.

Thus, Japan and the ROK are important trade and investment partners for each other. In addition to the progress in integration of supply chains in the manufacturing sector, the two countries have developed new cooperative relationships, such as joint expansion of business into third countries among Japanese and Korean companies.

In order to further strengthen the close economic relations between the two and also to ensure that the two countries play a leading role in regional economic integration in Asia, Japan is in the position that economic partnership between Japan and the ROK is of vital importance. Japan and the ROK continue to make every effort for progress in negotiations concerning the Japan-China-ROK Free Trade Agreement (FTA) and the Regional Comprehensive Economic Partnership (RCEP).

Concerning the environment, the 19th Japan-ROK Joint Committee on Environmental Cooperation was held in June, 2017. The two sides exchanged views on Japan-ROK environmental cooperation and global environmental issues, such as climate change, confirming that Japan and the ROK will closely cooperate on such subjects.

With respect to the issue of restrictions on import of Japanese marine products by the ROK, a panel was established at the WTO in September 2015, in response to Japan's request, and after examining the issue for around two years, a panel report was submitted in February 2018 recognizing Japan's claims. In addition to the WTO response, the Government of Japan has been taking various opportunities to request the ROK to repeal the increased restriction measures promptly.

C Situation in the ROK

(A) Domestic Affairs

In December 2016, the ROK National Assembly passed the resolution regarding the impeachment of President Park Geun-hye. Her power was suspended, and then, on March 10, 2017, the constitutional court declared her removal from office. After her power was suspended, Prime Minister Hwang Kyo-ahn took over as the Acting President. On May 9, 2017, the presidential election was held and Mr. Moon Jae-in was elected as the 19th President.

(B) Foreign Policy

On July 19, 2017, the Executive Office of the President of the ROK (Blue House) announced a “Five-year Plan for the Administration of State Affairs,” compiled by a president's council “The State Affairs Planning Advisory Committee” to be presented to Moon Jae-in administration. Regarding foreign diplomacy, the plan declared that the ROK would promote diplomatic cooperation with all four neighboring countries in a dignified manner. It declared that the ROK would “strive to promote the ROK-U.S. alliance based on the trust and cooperation, restoration of trust between the ROK and China, the ROK-Japan relations as a cooperative partnership in a future-oriented and mature manner and strategic cooperation between the ROK and Russia.”

Since the inauguration, President Moon Jae-in has visited Washington DC， U.S. (in June), Germany (in July at the G20 Hamburg Summit), Vladivostok, Russia (in September at the Eastern Economic Forum), New York, U.S. (in September at the UN General Assembly), Indonesia (in November), Da Nang, Viet Nam (in November at the APEC Economic Leaders' Meeting), Manila, the Philippines (in November for the ASEAN-related Summit Meetings) and China (in December).

(C) Economy

In 2017, the GDP growth rate of the ROK was 3.1%, increasing from 2.7% the previous year. The total amount of exports increased 15.8% year-on-year to around 573.9 trillion US dollars, while the total amount of imports increased 17.7% year-on-year to around 478.1 trillion US dollars, resulting in a trade surplus of around 95.77 trillion US dollars (figures published by the Ministry of Trade, Industry and Energy).

As for domestic economic policies, the Moon Jae-in administration inaugurated in May 2017, has stressed the importance of “income-led growth” and “an employment-centered economy” revolving around people. In October of the same year, the government announced a five-year job creation plan. Regarding energy policies, including the use of nuclear energy, it was decided that construction of the nuclear power plant (Shin Kori 5 and 6) that had been temporarily placed on hold would resume in October of that same year. On the other hand, it was also made clear that all plans and construction of new nuclear power plants would be canceled.