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Economy / South Korea

South Korea

May 2005 | Risk Summary

Relations between Japan and South Korea, strained by disagreements over Tokyo's militaristic past and rival claims to disputed islands, are on the mend. Leaders from the two nations met on the side of an Asia-Europe gathering in Kyoto for talks that also touched on North Korea's nuclear arms programme, an issue of concern for the whole region that encourages co-operative policy. However, differences remain; and a defence drill, planned by South Korea's maritime police near the disputed isles, risks inciting further tension between the neighbouring nations in advance of their June summit.

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