Under the Korea-Japan Economic Cooperation 2.0, the two nations could jointly develop hydrogen technologies, build shared infrastructure, and collaborate on decarbonisation strategies.

While details are thin, they may also coordinate efforts in key areas such as hydrogen supply chains, mobility solutions including fuel cell vehicles, and industrial applications aimed at reducing carbon emissions.

The deal could also serve as a stepping stone for broader regional cooperation, including trilateral efforts with the US.

Speaking at the 32nd Korea-Japan Business Conference in Tokyo on October 17, Keidanren Chair Tsutsui Yoshinobu emphasised the growing need for strategic regional cooperation.

“Amid a world of intensifying confrontation and division, Korea and Japan should contribute to realising a free and open Indo-Pacific by strengthening trilateral cooperation with the United States beyond the bilateral relationship.”

The broader agreement also outlined commitments to deepen cooperation in AI, trade liberalisation, and supply chain resilience.

Both nations endorsed Korea’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and reaffirmed support for reforming the World Trade Organisation (WTO).

Hydrogen cooperation, in particular, fits into both countries’ national strategies and ambitions.

In 2023, the Japanese government announced plans to invest ¥15 trillion in hydrogen over the next 15 years under a revision of its Basic Hydrogen Strategy.

Meanwhile, the South Korean Ministry of Trade, Industry and Energy (MOTIE) wants to generate 3,000-3,500GWh of power annually from clean hydrogen. However, it expects to rely heavily on export volumes of hydrogen to meet its demand.