2 Korean Peninsula

(1) North Korea (including the abductions issue)

The Government of Japan has been taking various initiatives 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.

A historic U.S.-North Korea Summit was convened in Singapore in June 2018, where U.S. President Trump and Chairman of State Affairs Commission Kim Jong-un agreed on the complete denuclearization of the Korean Peninsula. The second U.S.-North Korea Summit was held in Hanoi, Viet Nam in February 2019. It is important that the international community remains united to support the process between the U.S. and North Korea toward the denuclearization of the Korean Peninsula, building on the results of the summits. Japan will continue to cooperate with the U.S. and the ROK and coordinate closely with the international community, including China and Russia, toward the resolution of the issues of North Korea.

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 Stockholm⁶) and will continue to make utmost efforts to realize the return home of all abductees at the earliest possible date, while coordinating closely with relevant countries including the U.S.

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• 6 In May 2014, Japan-North Korea Intergovernmental Consultations were held in Stockholm, Sweden. North Korea promised to conduct comprehensive and full-scale investigation on all Japanese nationals, including abductees.

A North Korea Nuclear and Missile Issues

North Korea has not carried out the dismantlement of all weapons of mass destruction and ballistic missiles of all ranges in a complete, verifiable and irreversible manner, in accordance with a series of relevant United Nations (UN) Security Council resolutions, and there has been no essential change in North Korea's nuclear and missile capabilities.

In his New Year's Address in January 2018, Chairman Kim made reference to the need for inter-Korean dialogue, while on the other hand, indicated that North Korea will mass-produce nuclear warheads and ballistic missiles and spur efforts to deploy them for operation. At the Foreign Ministers' Meeting on Security and Stability on the Korean Peninsula held in Vancouver on January 16, participating countries discussed the need to fully implement the UN Security Council resolutions and to further strengthen autonomous measures. At the Japan-U.S.-ROK Foreign Ministers' Meeting held on the same day, the three Ministers confirmed that Japan, the U.S. and the ROK would take the lead on the initiatives of the international community, including calling for the full implementation of the UN Security Council resolutions. Subsequently, President Trump expressed his intention to hold talks with Chairman Kim. At the Japan-U.S. Summit Meeting that followed on April 17 and 18, the two leaders shared the view that North Korea needs to abandon all weapons of mass destruction and ballistic missile programs in a complete, verifiable and irreversible manner.

At the third Plenary Meeting of the seventh Central Committee of the Workers' Party of Korea held on April 20, North Korea announced it would suspend nuclear tests and test launches of intercontinental ballistic missiles (ICBMs) and shut down a nuclear test site. In the “Panmunjom Declaration on Peace, Prosperity and Reunification of the Korean Peninsula” issued at the Inter-Korean Summit on April 27, both sides confirmed the common goal of realizing, through the complete denuclearization, a nuclear-free Korean Peninsula. On May 24, North Korea demolished the Punggye-ri nuclear test site. In addition, at the Inter-Korean Summit on May 26, Chairman Kim once again expressed his intention to achieve the complete denuclearization of the Korean Peninsula, according to an ROK announcement.

At the first ever U.S.-North Korea Summit on June 12, a joint statement of the U.S. and North Korean leaders was issued, in which Chairman Kim directly promised President Trump the “complete denuclearization” of the Korean Peninsula in a written document with his signature. This format took into account a proposal made by Prime Minister Abe to President Trump at the Japan-U.S. Summit Meeting in April that agreements between the U.S. and North Korean leaders be kept in a signed document. During the Japan-U.S. Summit Telephone Talks on June 12 following the U.S.-North Korea Summit, the two leaders reaffirmed the resolute policy of Japan and the U.S., as well as Japan, the U.S. and the ROK to make a concerted effort with the international community to urge North Korea to fully implement the UN Security Council resolutions, building on the achievements of the historic U.S.-North Korea Summit. Furthermore, on June 14, at the Japan-U.S.-ROK Foreign Ministers' Meeting held in Seoul, ROK, the Foreign Ministers shared the view that it is important to translate the outcomes of the U.S.-North Korea Summit into concrete actions by North Korea. On July 7 and 8, U.S. Secretary of State Pompeo visited Japan immediately after visiting North Korea, and Japan-U.S.-ROK and Japan-U.S. Foreign Ministers' Meetings were held. At the meetings, the Foreign Ministers confirmed their shared goal of seeking the dismantlement of all its weapons of mass destruction and ballistic missiles of all ranges in a complete, verifiable and irreversible manner based on the UN Security Council resolutions, and shared their views that they will work together to urge North Korea to take concrete actions toward the complete implementation of the UN Security Council resolutions.

In the “Pyongyang Joint Declaration of September 2018” issued at the Inter-Korean Summit on September 19, North Korea announced that it would first permanently dismantle the Dongchang-ri missile engine test site and launch platform under the observation of experts from relevant countries, and that it expressed its willingness to take additional measures, such as the permanent dismantlement of the nuclear facilities in Yeongbyeon, as the U.S. takes additional measures. The Declaration also set forth that both sides would cooperate closely in the process of pursuing the complete denuclearization of the Korean Peninsula.

On October 7, Secretary of State Pompeo held talks with Chairman Kim during his visit to North Korea. The U.S. announced that Chairman Kim invited inspectors to confirm the irreversible dismantlement of the Punggye-ri nuclear test site. Meanwhile, on November 7, the cancellation of the scheduled U.S.-North Korea High Level Official Meeting was announced, and no additional U.S.-North Korea High Level Official Meetings were held in 2018.

On January 18, 2019, Kim Yong-chol, Deputy Chairman of the Workers' Party of Korea, visited the U.S. and made a courtesy call on President Trump. While the second U.S.-North Korea Summit was held in Hanoi, Viet Nam on February 27 and 28, it did not lead to an agreement between the two leaders. Regarding the Summit, President Trump stated that he spent constructive time with Chairman Kim, and that while North Korea was ready to carry out a large part of the denuclearization sought by the U.S., the U.S. could not agree to lift its sanctions entirely to this end.

It is crucial that the international community makes concerted efforts to fully implement the UN Security Council resolutions for the dismantlement of all weapons of mass destruction and ballistic missiles of all ranges in a complete, verifiable and irreversible manner by North Korea. As part of the Japan Coast Guard's patrolling activities and the Self Defence Force's monitoring and 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 2018, Japan revealed to the public ten activities strongly suspected to be ship-to-ship transfers, through the Ministry of Foreign Affairs (MOFA) website and through other media. Aircrafts of Canada, Australia and New Zealand, in addition to the U.S., have engaged in monitoring and surveillance activities against illicit maritime activities, including ship-to-ship transfers for around one month from late April 2018 and for around a month and a half from mid-September based in Kadena Air Base. Furthermore, monitoring and surveillance activities were conducted in waters surrounding Japan including the East China Sea, by naval vessels such as multiple vessels of the U.S. Navy, the British Royal Navy frigate SUTHERLAND and landing ship ALBION, the Royal Canadian Navy frigate CALGARY and Royal Australian Navy frigate MELBOURNE. Japan considers it is significant that Japan, the U.S., Australia, New Zealand, Canada, the UK and France are sharing information and coordinating efforts as part of the multinational effort to ensure that UNSCRs are implemented fully and effectively.

B The Abductions Issue and Japan-North Korea Relations

(A) Basic Position 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 abductees 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 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.

(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.

(C) Japan-North Korea Relations

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, 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 August, during the ASEAN-related Foreign Ministerial Meeting held in Singapore, Foreign Minister Kono briefly talked with the North Korean Minister of Foreign Affairs Ri Yong-ho and conveyed Japan's basic position regarding Japan-North Korea relations. Additionally, in September, Foreign Minister Kono held a meeting with the North Korean Minister of Foreign Affairs Ri Yong Ho at the UN headquarters.

(D) Cooperation with the International Community

In order to resolve the abductions issue, it is essential for Japan not only to proactively urge North Korea, but also to gain understanding and support from other countries regarding the importance of resolving the abductions issue. 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 Charlevoix Summit in Canada, the Japan-China-ROK Trilateral Summit, the Japan-U.S.-ROK Foreign Ministers' Meeting, ASEAN-related Summit Meetings and UN meetings.

With regard to the U.S., President Trump raised the abductions issue with Chairman Kim at the U.S.-North Korea Summit in June 2018, at the request of Prime Minister Abe. In addition, the U.S. has raised the abductions issue with North Korea at opportunities, such as Secretary of State Pompeo's visit to North Korea. At the second U.S.-North Korea Summit in February 2019, President Trump raised the abductions issue with Chairman Kim at the tête-à-tête meeting, which was held first on the first day, and clearly stated Prime Minister Abe's views regarding the abductions issue. At the small group dinner that followed, President Trump again raised the abductions issue, and a serious discussion was held between the leaders. At the U.S. Congress, a resolution regarding a U.S. citizen possibly abducted by North Korea was approved and passed during the regular session of the House of Representatives in September 2016 as well as during the regular session of the U.S. Senate in November 2018.

The ROK has raised the abductions issue with North Korea at multiple opportunities, including the Inter-Korean Summit in April 2018. At the Japan-China-ROK Trilateral Summit Meeting in May 2018, Prime Minister Abe called on support and cooperation of President Moon Jae-in of the ROK and Premier of the State Council of China Li Keqiang toward the early resolution of the abductions issue, and as a result of obtaining their understanding, the abductions issue was included in the outcome document for the first time. Furthermore, at the Japan-Russia Summit Meeting in September 2018, Prime Minister Abe called on Russia's cooperation in resolving the abductions issue, and obtained President Putin's understanding. At the Japan-China Summit Meeting in October that year, Prime Minister Abe once again explained Japan's position regarding the abductions issue, and obtained the understanding and support of President Xi Jinping.

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

On March 8, 2018, Chung Eui-yong, Republic of Korea National Security Adviser paid a courtesy call on President Trump during his visit to the U.S. to explain the outcomes of the visit to North Korea by an ROK delegation, which was led by a special envoy, from March 5 to 6. Following the courtesy call, National Security Adviser Chung Eui-yong announced to the press at the White House that President Trump stated he would meet with Chairman Kim by May. Subsequently, U.S. Government officials including President Trump verified such intention.

On May 9, during Secretary of State Pompeo's visit to North Korea to prepare for the U.S.-North Korea Summit, three U.S. citizens who had been detained in North Korea were released. On May 10, President Trump announced that a U.S.-North Korea Summit would be held in Singapore on June 12.

On May 24, President Trump disclosed his letter to Chairman Kim and indicated his intention not to hold a U.S.-North Korea Summit. However, following a courtesy call by Kim Yong-chol, Deputy Chairman of the Workers' Party of Korea during his visit to the U.S. on June 1, President Trump announced once again that a U.S.-North Korea Summit would be held in Singapore on June 12.

On June 12, a U.S.-North Korea Summit was held for the first time in history in Singapore, and following the meeting, President Trump and Chairman Kim signed a joint statement of the two leaders. From July 6 to 7, U.S. Secretary of State Pompeo visited Pyongyang and held a meeting with Kim Yong-chol, Deputy Chairman of the Workers' Party of Korea. Following the U.S.-North Korea generals' consultations on July 15, a transport aircraft of the U.S. Forces repatriated the remains of U.S. troops killed during the Korean War from Wonsan in North Korea to Osan in the ROK on July 27, on the 65th anniversary of the Korean War armistice. On August 1, the remains were transported to Hawaii, and a repatriation ceremony was held with U.S. Vice President Pence attending.

On October 7, Secretary of State Pompeo visited North Korea with Special Representative for North Korea Stephen Biegun, who was appointed in August, and others, and held talks with Chairman Kim. The U.S. Department of State announced that they discussed the dates and location of the second U.S.-North Korea Summit, and that Chairman Kim invited inspectors to verify the irreversible dismantlement of the Punggye-ri nuclear test site.

In January, February, August, September, October, November and December 2018, the U.S. newly designated individuals, entities and ships which are subject to sanctions based on the autonomous measures of the U.S. against North Korea for its involvement in the proliferation of WMDs and human rights violations, based on the U.S. policy of maintaining sanctions until the denuclearization of North Korea is achieved. The sanctions target entities and individuals in North Korea, as well as those in third countries, including Russia and China.

(B) Inter-Korean Relations

Though the Moon Jae-in administration of the ROK inaugurated in May 2017, through channels such as “the Korean peninsula peace initiative” unveiled in Berlin in July 2017⁷, proposed the resumption of inter-Korean dialogue to North Korea, North Korea continued not to oblige. However, Chairman Kim made reference to the need for inter-Korean dialogue in his New Year's Address in 2018, and this prompted considerable strides in inter-Korean relations that year.

Three Inter-Korean Summits were held in 2018⁸. The first summit of the year was held at the “Peace House” on the South Korean side of Panmunjom on April 27, and the “Panmunjom Declaration for Peace, Prosperity and Unification of the Korean Peninsula” was adopted as an agreement document between the two leaders. The second summit was held at the “Thongil house” on the North Korean side of Panmunjom on May 26. At this meeting, it is believed that Chairman Kim expressed his willingness to hold a U.S.-North Korea Summit. The third summit was held during President Moon's visit to North Korea from September 18 to 20, and the “Pyongyang Joint Declaration of September” was adopted as an agreement document between the leaders.

On this basis, the North and South deepened exchanges and cooperation in a variety of areas according to the above agreement documents. In the security realm, the “Agreement on the Implementation of the Historic Panmunjom Declaration in the Military Domain” was adopted as an outcome of the Inter-Korean Summit in September. Measures taken thus far include the suspension of military exercises around the Military Demarcation Line (MDL), establishment of a no-fly zone over the MDL and withdrawal of some guard posts in the demilitarized zone. In the area of economic cooperation, the two sides discussed cooperation in sectors such as railway and road, forestry, health and medicine, and aviation. They have held, for example, on-site surveys for railways and roads connecting the North and South and their groundbreaking ceremony. The ROK has also provided insecticides to control pine wilt to North Korea.

In addition, the Inter-Korean Liaison Office stationed with North Korean and ROK authorities was established in Kaesong in North Korea. A reunion of separated families was also conducted for the first time in approximately three years. On the other hand, some agreements made at the Inter-Korean Summit to be achieved by the end of 2018 were not realized, including Chairman Kim's visit to Seoul.

Against this backdrop, the Moon administration has expressed its position of promoting inter-Korean cooperation within the sanctions framework according to the UN Security Council resolutions, and requested and obtained approval from the Security Council Committee for sanctions exemptions for some of the projects⁹.

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• 7 On July 6, 2017, President Moon announced “the Korean peninsula peace initiative” ((1) the reunion of separated families and revisits to ancestral graves on October 4 and holding South-North 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).
• 8 Prior to 2018, an Inter-Korean Summit was held twice in June 2000 and October 2007.
• 9 Of the projects identified above, sanctions exemptions have been approved for projects such as on-site surveys for railways, railway and road groundbreaking ceremony and repair of facilities used for the reunion of separated families.

(C) China-North Korea Relations

In March 2018, Chairman Kim visited China as his first overseas destination following the death of Chairman of National Defense Commission Kim Jong-il in December 2011, and held talks with President of China Xi Jinping. Chairman Kim visited China again in May and June 2018. Minister of Foreign Affairs of China Wang Yi visited North Korea in May 2018 and paid a courtesy call on Chairman Kim. Chairman of the Congress Standing Committee of China Li Zhanshu, visited North Korea on the anniversary of its founding on September 9. North Korean Minister of Foreign Affairs Ri Yong Ho visited China and paid a courtesy call on President of China Xi, in December. In January 2019, Chairman Kim visited China ahead of the second U.S.-North Korea Summit. In this manner, reciprocal visits by high-level officials were conducted.

Under such circumstances, China and North Korea have maintained close economic ties. For example, trade between China and North Korea accounts for approximately 90% of North Korea's entire external trade excluding inter-Korean trade.

(D) Other Issues

In 2018, a total of 225 drifting or wrecked wooden vessels presumed to be from North Korea were discovered (104 in 2017). While such vessels have been discovered before, their number has increased in recent years, and the Government of Japan continues its effort to gather and analyze information with great interests on developments in North Korea. Japan will continue to deal appropriately with these issues working closely with relevant government agencies.

D Domestic Political Affairs and Economy

(A) Political Affairs

In North Korea, the power base of the regime centered on Chairman Kim, is being enhanced. Through the revision of the party constitution at the seventh Party Congress of the Workers' Party of Korea held in May 2016, 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 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. At the plenary session of the Central Committee of the Worker's Party of Korea held in April 2018, Chairman Kim declared victory of the “byungjin policy,” which was presented at the plenary session of the Central Committee of the Workers' Party of Korea in March 2013, and he stated that focusing all of its energies on economic construction was the strategic policy of the Party.

(B) Economy

The National Five-Year strategy for Economic Development (2016-2020) was announced at the Seventh Party Congress of the Worker's Party of Korea in May 2016. 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.

North Korea's economic growth rate in 2017 was -3.5% (Bank of Korea estimate), deteriorating significantly from the positive growth of 3.9% in the previous year. Decreased production in agriculture, forestry and fisheries industries, steel industry, industrial production and other industries is considered to have contributed to this negative growth. Trade with China continues to account for the largest share of North Korea's external trade. In 2017, the total value of North Korea's external trade (excluding inter-Korean trade) was 5.5 billion US dollars (Korea Trade-Investment Promotion Agency (KOTRA) estimate), of which trade with China accounted for around 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

In 2018, the relations between Japan and the ROK faced an extremely severe situation amid a series of negative moves by the ROK, including the decisions by the ROK Supreme Court regarding the issue of former civilian workers from the Korean Peninsula, the announcement by the Government of the ROK to dissolve the “Reconciliation and Healing Foundation,” the landing by ROK National Assembly members on Takeshima Island, the incident in which Japanese vessels had to withdraw from an international fleet review hosted by the ROK over the hoisting of the flag of SDF vessels, and the incident of an ROK naval vessel directing its fire-control radar at an SDF aircraft¹⁰. Meanwhile, three Japan-ROK Summit Meetings and eight Japan-ROK Foreign Ministers' Meetings were held. Based on its consistent position, Japan continued to urge the ROK to take appropriate measures to the difficult issues between the two countries, and confirmed with the ROK that Japan-ROK and Japan-ROK-U.S. would work closely on the issues of North Korea.

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• 10 For the Ministry of Defense's final statement on the radar irradiation incident, see the following link: https://www.mod.go.jp/j/press/news/2019/01/21x_1_e.pdf

(B) Issue of Former Civilian Workers from the Korean Peninsula (See boxed article “The Issue of Former Civilian Workers from the Korean Peninsula”)

(C) Issue of Comfort Women (See boxed article “The Issue of Comfort Women”)

(D) 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 keeping the world informed about Japan's position on the issue through various media¹¹, and has repeatedly lodged strong protests against the ROK over matters such as landing on the island by members of the ROK's National Assembly and others, the ROK's military exercises and maritime surveys¹². In particular, in 2018, members of the ROK's National Assembly landed on Takeshima on three instances, and military exercises and marine searches were also conducted on the island or its vicinity. The Government of Japan considers them unacceptable in view of the Japanese position and lodged strong protests.

For a peaceful settlement of the Takeshima dispute, Japan has proposed to the ROK that the issue be referred to the International Court of Justice (ICJ) in 1954, 1962 and 2012. However, the ROK has rejected the proposal in all instances. Japan is determined to continue to engage in appropriate diplomatic efforts to settle the Takeshima dispute in a peaceful manner in accordance with international law.

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• 11 In February 2008, the Ministry of Foreign Affairs published 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 increasing awareness about the Takeshima issue.
• 12 After Shim Jae-kwon, member of the Minjoo Party of Korea, landed on Takeshima in May 2018, a delegation of 13 ROK National Assembly members of the Education Committee led by Lee Chan-yeol, member of the Bareunmirae Party, landed on the island in October and a delegation of eight ROK National Assembly members led by Na Kyung-won, member of the Liberty Korea Party, landed in November. In addition, the ROK Armed Forces conducted Takeshima defense training in June and December 2018. 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.

(E) Exchange

While there are various issues between the two countries, people-to-people exchanges are taking place steadily between the two countries. With regard to the number of people making visits between the two countries, in 2018, approximately 7.54 million people from the ROK visited Japan, while approximately 2.95 million people from Japan visited the ROK. Both figures are higher than the ones in the previous year. People of the two countries actively visited each other, with the total number reaching approximately 10.49 million people, exceeding 10 million people for the first time.

In Japan, K-POP and South Korean TV dramas, etc., are widely accepted by people of all ages. In the ROK, Japanese food, manga, anime and novels of Japan have become popular.

The Government of Japan has also sought to promote mutual understanding and build a friendly and cooperative relationship for the future through the Japan-Korea Exchange Festival─the major Japan-ROK cultural exchange event that has become firmly rooted in both countries─and Japan's Friendship Ties Programs (JENESYS 2018).

In addition, as 2018 marked the 20th anniversary of the 1998 “Japan-ROK Joint Declaration: A New Japan-ROK Partnership toward the Twenty-first Century” between Prime Minister Obuchi and President Kim Dae Jung, the Advisory Panel of Experts on Promotion of Japan-ROK Cultural and People-to-People Exchanges was set up in July under the leadership of Foreign Minister Kono. The Panel met three times, following which on October 3 the experts submitted recommendations to Foreign Minister Kono. On October 29, the experts of the Panel visited the ROK and exchanged views with members of the Task Force to Boost Cultural and People-to-People Exchanges between the ROK and Japan, set up at the Ministry of Foreign Affairs of the ROK, regarding each other's recommendations. In connection with the 20th anniversary of the Joint Declaration, a commemorative symposium was held attended by Prime Minister Abe and a commemorative reception was hosted by Foreign Minister Kono on October 9.

(F) Other Issues

Sea of Japan is the only internationally established name for the sea area concerned and the UN 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 UN 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 its diplomatic channels to return cultural properties that were stolen and are currently in the ROK¹³ to Japan as soon as possible. Japan will continue to call upon the Government of the ROK for their prompt return.

In February 2019, Moon Hee-sang, Speaker of the National Assembly of the ROK, made grossly inappropriate remarks. Japan firmly protested to the ROK that the remarks were extremely regrettable, lodged a strong protest, and requested an apology and withdrawal of the remarks.

Other than these issues, Japan has provided supports and taken measures as much as possible from a humanitarian perspective in a wide range of fields, including responses for ethnic Koreans in Sakhalin¹⁴, addressing the issue of atomic bomb survivors living in the ROK¹⁵ and helping Hansen's disease patients admitted to sanitariums in the ROK¹⁶.

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• 13 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).
• 14 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 supports, such as to enable them to return home temporarily and to visit Sakhalin.
• 15 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.
• 16 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 the two countries amounted to approximately 9.34 trillion yen in 2018. 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 decreased by approximately 21% from a year earlier, reaching 2.24 trillion yen (Trade Statistics of Japan, Ministry of Finance). Japanese direct investment in the ROK totaled approximately 1.3 billion US dollars (down 29% from the previous year) (figures published by the ROK Ministry of Trade, Industry and Energy), making Japan the ROK's sixth-largest source of foreign direct investment.

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 20th Japan-ROK Joint Committee on Environmental Cooperation was held in July 2018. The two sides exchanged views on bilateral environmental cooperation, marine debris measures, 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. After examining the issue for around two and a half years, a panel report was submitted in February 2018 recognizing Japan's claims. However, the ROK appealed certain issues of law contained in the Panel Report to the Appellate Body in April 2018. In addition to the WTO response, the Government of Japan has been taking various opportunities to request the ROK to repeal the import restriction measures promptly. In addition, regarding the ROK's anti-dumping measures against stainless steel bars originating from Japan, a panel was established at the WTO in October 2018 at Japan's request. Bilateral consultations based on the WTO Agreement were also held in December concerning the ROK's assistance measures for its shipbuilding industry.

C Situation in the ROK

(A) Domestic Affairs

The ROK hosted its first winter Olympic and Paralympic Games: the PyeongChang Olympic Games in February 2018 and the PyeongChang Paralympic Games in March.

On March 26, President Moon Jae-in proposed revising the Constitution, which would reduce the powers of the President while shortening the presidency from a five-year to a four-year term. This was the first constitutional amendments proposed since the existing Constitution was established in 1987. However, voting on the draft constitutional amendments presented to the National Assembly was nullified on May 24 due to a lack of a quorum (two-thirds of sitting National Assembly members), which meant a denial of the amendments.

In the local elections on June 13, the ruling Democratic Party of Korea won 14 of the 17 metropolitan mayor and governor posts. In the National Assembly re- and by-elections held at the same time, the Democratic Party of Korea secured an overwhelming victory, winning 11 of the 12 constituencies.

Since the 2017 presidential election campaign, President Moon Jae-in pledged to eradicate “deep-rooted evils” and eliminate the frauds and corruption from nine years of conservative government (Park Geun-hye and Lee Myung-bak administrations). In this regard, some developments have been observed, including prosecutors' search and seizure of the Ministry of Foreign Affairs (August 2, 2018) and detainment of Yang Sung-tae, former Supreme Court Chief Justice (January 24, 2019) on suspicion of “judicial transaction,” in which attempts were made to accommodate by extending the Supreme Court decision on the issue of former civilian workers from the Korean Peninsula in exchange for increasing posts at diplomatic missions overseas.

(B) Foreign Policy

In 2018, the ROK engaged in diplomacy with top priority given to the issues of North Korea. At milestone opportunities, such as visits to North Korea by a special envoy delegation (March and September) and Inter-Korean Summits (April and September), the ROK provided explanations to or held consultations with countries such as the U.S., Japan, China and Russia regarding the outcomes of its meetings, through channels such as summit meetings, summit telephone talks, and dispatches of special envoy delegations (See Chapter 2, Section 1, 2 (1) regarding inter-Korean relations).

With regard to ROK-U.S. relations, it was announced that, based on the progress of the dialogues with North Korea, in June 2018, all plans for the U.S.-ROK joint military exercise “Freedom Guardian” scheduled for August 2018 would be suspended indefinitely, along with two U.S.-ROK Marine Exchange Program training exercises scheduled to occur within three months. In October 2018, the suspension of the U.S.-ROK joint military exercise “Vigilant Ace” was announced. In March 2019, the ROK and the U.S. decided to end a series of the U.S.-ROK joint military exercises, “Key Resolve” and “Foal Eagle.” However, from the perspective of maintaining military readiness, the two countries newly conducted the command post exercise “Alliance.” Furthermore, the ROK and the U.S. reached an agreement in principle on revising their FTA in March 2018, and the revised protocol was signed in September and entered into force in January 2019.

In addition, in 2018, President Moon Jae-in visited Viet Nam (in March), the United Arab Emirates (in March), Japan (in May for the Japan-China-ROK Trilateral Summit), the U.S. (in May), Russia (in June), India (in July), Singapore (in July), the U.S. (in September for the UN General Assembly), France (in October), Italy (in October), the Vatican (in October), Belgium (in October), Denmark (in October), Singapore (in November for the ASEAN-related Summit Meetings), Papua New Guinea (in November for the APEC Economic Leaders' Meeting), the Czech Republic (in November), Argentina (in November for the G20 Summit) and New Zealand (in December).

(C) Economy

In 2018, the GDP growth rate was 2.7%, showing a decrease from 3.1% the previous year. The total amount of exports increased 5.5% year-on-year to around 605.2 billion US dollars, while the total amount of imports increased 11.8% year-on-year to around 535.2 billion US dollars, resulting in a trade surplus of around 70.0 billion 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. Against this backdrop, it has taken measures, such as significantly increasing the minimum wage for two consecutive years (to 7,530 won in 2018 (up 16.4% year-on-year) and to 8,350 won in 2019 (up 10.9% year-on-year)). On the other hand, the ROK has a youth unemployment rate of 9.5% (2018), and employment conditions are worsening.