
Lee, Ishiba back 3-way cooperation with US in 1st phone talks
'The two leaders also reviewed the achievements of past South Korea-US-Japan cooperation and agreed to continue efforts to respond to various geopolitical crises within the framework of trilateral collaboration,' Lee's spokesperson Kang Yu-jung said.
They also discussed ways to strengthen bilateral ties to explore a mutually beneficial partnership in the first phone conversation since Lee's presidential election win the previous week.
In a 25-minute phone call that started at noon Monday, Lee and Ishiba agreed to meet in person in the future to discuss issues of mutual interest, including ways to develop bilateral ties, Kang said.
According to Kang, Lee highlighted the growing importance of the bilateral ties between South Korea and Japan in the face of current challenges that could be strategically addressed.
Kang also said that Lee expressed his anticipation that the two countries could "explore ways to deal with common challenges in the future and seek co-prosperity from the perspective of mutual interests."
Marking the 60th anniversary of establishing diplomatic ties, the two leaders pledged to strengthen communications between the authorities, Kang said, adding the two agreed to solidify bilateral ties on the foundation of mutual respect and trust.
Both Lee and Ishiba are expected to attend the Group of Seven summit in Canada soon. Plans for a possible in-person meeting of Lee and Ishiba on the sidelines of the multilateral summit have yet to be announced by Seoul as of press time.
Under ousted former President Yoon Suk Yeol, the relationship between South Korea and Japan has thawed as Yoon had sought to leave historical grievances in the past. The thawing relations boosted people-to-people exchange to a record level, as the all-time-high 11.25 million passengers were estimated to have flown between South Korea and Japan during the first five months of 2025.
While Yoon touted the close ties with Japan as an effort to "overcome the painful past," Lee, who was then the leader of the liberal opposition party, had long criticized Yoon for his "humiliating" approach to diplomacy.
In a congratulatory message to Lee over his election win, Ishiba noted that he hoped for a "renewed relations after years of strain between the two countries," expressing his intention to work together on issues of security, historical reconciliation and regional stability.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Korea Herald
11 minutes ago
- Korea Herald
Westinghouse deal tensions loom over Korea-US summit
Controversial KHNP agreement faces backlash at home as leaders prepare to discuss nuclear energy cooperation Escalating tensions over a deal between South Korea's state-run energy firms and US company Westinghouse are complicating the agenda for the upcoming Korea-US summit, where nuclear energy cooperation is expected to take center stage. South Korean President Lee Jae Myung and US President Donald Trump are scheduled to meet in Washington next Monday for their summit, with officials saying nuclear partnership will be high on the agenda. According to a local media report on Wednesday, state-run Korea Hydro & Nuclear Power and Westinghouse, the two companies at the heart of the controversy, are preparing to form a joint venture to enter the US nuclear reactor market on the occasion of the upcoming summit. The report explained that since KHNP cannot independently access the US market, it plans to enter through a partnership with the American firm while handling most of the construction work. Nuclear energy's inclusion on the summit agenda was widely expected, given that the sector was part of South Korea's $200 billion investment pledge in the US under the tariff deal announced last month. President Trump has vowed to expand US nuclear energy capacity from 97 gigawatts to 400 gigawatts by 2050. Achieving this target would require constructing approximately 300 new 1,000-megawatt reactors. Industry observers view the US as eyeing Korean companies' technological expertise and construction capabilities to meet this goal. The plan comes amid controversy over a separate agreement that KHNP and Korea Electric Power Corp. struck with Westinghouse in January, sparking worries about potential summit implications. The settlement resolved Westinghouse's claims that KHNP had violated its intellectual property rights by using licensed Westinghouse technology in the development of its APR 1000 and 1400 nuclear reactor designs. The deal cleared the way for a KHNP-led consortium to sign an estimated 26 trillion won ($18.58 billion) contract in June to build two nuclear reactors in the Czech Republic. But after details of the settlement came to light on Monday following another local media report, the state-run company came under fire for agreeing to lopsided conditions to reach a swift deal, while burdening itself with hefty financial commitments. According to the agreement, KHNP agreed to sign contracts for goods and services worth $650 million with Westinghouse for each export of a single nuclear reactor, and to pay an additional $175 million per reactor in technology licensing fees. The 50-year deal also contains a provision requiring Westinghouse to verify the technical independence of Korean companies before they can bid on overseas nuclear reactor projects, including small modular reactors. It also restricted KHNP to pursuing nuclear projects in only 12 designated countries -- including the Philippines, Vietnam, Kazakhstan, Morocco, Egypt, Brazil, Argentina, Jordan, Turkey, UAE, Saudi Arabia and South Africa -- while barring it from new deals in North America, Britain, Japan, Ukraine and the EU, except for the Czech Republic. Lawmakers blamed KHNP for bowing to US pressure to secure the Czech deal. 'It has been confirmed that the Yoon Suk Yeol government signed an unfair contract with Westinghouse to break the deadlock in the Czech project,' said Rep. Han Jeong-ae of the ruling Democratic Party of Korea at the National Assembly on Tuesday. Amid the controversy, KHNP CEO Whang Joo-ho on Tuesday said the deal terms remain within acceptable limits, but he declined to provide detailed answers, citing confidentiality obligations. 'While I cannot say (Westinghouse's demands) are justified, they are something tolerable enough for us to endure and still generate profit,' Whang said at the National Assembly. Meanwhile, opposition People Power Party lawmakers also stressed that just before the Korea-US summit, it may not serve the national interest for the parliament to directly confront the Westinghouse issue. 'Westinghouse may hold the original technology, but it lacks the construction capacity to independently build reactors, which means Korean companies are likely to handle the construction,' said an industry insider on condition of anonymity. 'Even if the deal is viewed as unfavorable, I believe it was inevitable if Korean companies are going to expand their overseas nuclear businesses.' Amid growing backlash, South Korea's presidential office has ordered the Industry Ministry to investigate the deal to verify that the negotiations and contract process were carried out based on laws and regulations and in accordance with principles and procedures.


Korea Herald
11 minutes ago
- Korea Herald
Seoul shares fall for 3rd day amid AI bubble woes; won sharply down
South Korean stocks closed lower for the third consecutive session Wednesday as big-cap tech shares tracked overnight losses of US tech giants sparked by concerns over a possible bubble in the artificial intelligence sector. The Korean won was trading sharply lower against the US dollar. The benchmark Korea Composite Stock Price Index dipped 21.47 points, or 0.63 percent, to close at 3,130.09. Trade volume was moderate at 331.7 million shares worth 11.6 trillion won ($8.3 billion), with losers outnumbering winners 643 to 241. Retail and foreign investors dumped local shares worth 392.7 billion won and 232.6 billion won, respectively, while institutions purchased 516.3 billion won. Overnight, the tech-heavy Nasdaq composite closed 1.46 percent lower, and the S&P 500 shed 0.59 percent after OpenAI CEO Sam Altman warned that the AI market may be in a bubble like the dot-com bubble during the late 1990s, which led to a stock market crash in the early 2000s. AI chip giant Nvidia lost 3.5 percent, AMD shed 5.44 percent, and TSMC slipped 3.61 percent. Investor sentiment was also dampened by heightened caution ahead of the Jackson Hole economic policy symposium, slated for Friday (US time), where Federal Reserve Chair Jerome Powell will make a speech on his outlook for the economy. Wall Street had initially been almost certain that Powell will signal a rate cut in September, but concerns have grown that the Fed chief may take a more cautious approach as the latest US producer price data showed sticky inflation. "Wednesday's slump of the Kospi can be attributed to the concerns over an AI bubble as seen in the US stock market overnight, the selling of tech shares, profit-taking of shipbuilding, nuclear power and defense shares that had led the recent increase of the Korean stock market," Seo Sang-young, an analyst at Mirae Asset Securities, said. Seo said nuclear power shares lost ground on foreign selling, while defense shares went down on a profit-taking sentiment. Shipbuilding shares showed weakness amid concerns domestic companies will again face fierce competition against Chinese firms, he added. In Seoul, chip giant SK hynix slid 2.85 percent to 255,500 won, while its rival Samsung Electronics gained 0.71 percent to 70,500 won. Leading battery maker LG Energy Solution lost 1.69 percent to 377,500 won, and defense powerhouse Hanwha Aerospace dipped 1.33 percent to 816,000 won. Nuclear power plant builder Doosan Enerbility shot down 3.53 percent to 57,400 won, and internet portal operator Naver declined 1.77 percent to 221,500 won. Shipbuilders were mixed, with Hanwha Ocean down 0.75 percent to 105,200 won and HD Korea Shipbuilding slipping 1.55 percent to 349,500 won. HD Hyundai Heavy gained 0.67 percent to 450,500 won. Automakers were among the few gainers. Hyundai Motor increased 0.68 percent to 220,500 won, and its sister Kia climbed 1.06 percent to 105,100 won. The local currency was quoted at 1,398.4 won against the greenback at 3:30 p.m., down 7.5 won from the previous session. (Yonhap)


Korea Herald
41 minutes ago
- Korea Herald
Kim Jong-un issues inter-Korean policy rejecting Seoul's olive branch
North Korean leader Kim Jong-un on Tuesday conveyed his inter-Korean policy plan through his sister Kim Yo-jong, who handed it down during a meeting with key Foreign Ministry officials while denouncing Seoul's olive-branch offer as 'deceptive,' state media reported Wednesday. Seoul swiftly rejected the charge. The presidential office said, "It is regrettable that a North Korean official distorts and misrepresents our sincere efforts." President Lee Jae Myung's office also pledged to "move beyond an era of hostility and confrontation, restore mutual trust, and open a new era of peaceful coexistence and joint growth on the Korean Peninsula." North Korea's latest statement was part of a series of high-level pronouncements that zeroed in on what it labeled a "contradiction" in the Lee administration's conciliatory inter-Korean policy — pointing to the ongoing Ulchi Freedom Shield exercise between South Korea and the US. Kim Yo-jong, vice department director of the Party Central Committee, 'conveyed and assigned the head of state's foreign policy plan at a consultative meeting with director generals of the Foreign Ministry,' state-run Korean Central News Agency reported Wednesday in a Korean-language dispatch. At the same time, Kim 'sharply criticized the essence of the Republic of Korea government's deceptive 'appeasement offensive' and its two-faced nature,' KCNA added, referring to South Korea by its official name. 'Clarifying once again on this occasion, the ROK cannot become our state's diplomatic counterpart,' Kim was quoted as saying in the KCNA report. 'The DPRK Foreign Ministry must properly seek accurate countermeasures regarding relations with the most hostile state and with the states that listen to its agitation, based on the conclusion of our head of state, who pointed out the true nature of the ROK," Kim said. DPRK stands for North Korea's official name, the Democratic People's Republic of Korea. KCNA reported that Kim Yo-jong "analyzed Seoul's behavior of pretending as if the ROK's policy toward the DPRK is making a 'rapid U-turn'" during the meeting. Kim specifically dismissed President Lee's Aug. 15 National Liberation Day speech, in which Lee pledged to respect the North Korean system, not to pursue unification by absorption and clarified South Korea's intent not to conduct any hostile acts. Then, Kim denounced the Lee administration for 'parroting' its predecessors' rhetoric by describing the annual combined military exercises between South Korea and the United States as defensive in nature. 'This is a passage that vividly reflects the double-faced character of the Seoul authorities, whose inside and outside are different," Kim was quoted as saying in the KCNA report. "Whoever in the ROK it may be, one must not forget the fact that they are America's top-class running dog.' Mounting pressure before Lee-Trump summit Lim Eul-chul, a professor at Kyungnam University's Institute for Far Eastern Studies in Seoul, assessed that 'Kim Yo-jong's core message is essentially a propaganda line.' 'The point is that as long as the South Korean government remains subordinate to the US, it cannot create a new history of sustainable and peaceful inter-Korean relations," Lim said. 'North Korea is seeking to push the Lee Jae Myung administration into making a more drastic shift from its hostile policy toward the North — including the suspension of ROK-US military exercises — by exerting maximum pressure on the administration.' The latest remarks followed Kim Jong-un's order — issued Monday, the first day of the Ulchi Freedom Shield regular exercises between South Korea and the US — calling for a rapid nuclear buildup and denouncing the combined drills. On Aug. 14, Kim Yo-jong had similarly criticized the exercises, claiming that the Lee administration's policy toward North Korea 'has not changed in the least and cannot change.' The string of denunciatory statements comes ahead of the first summit between President Lee and US President Donald Trump on Aug. 25 in Washington. Lim further explained that the outcomes of the Lee-Trump summit 'are expected to have a significant impact on inter-Korean relations.' 'The key question is whether the results will show weakened dependence on the US and greater diplomatic autonomy vis-a-vis the US,' Lim said. 'However, North Korea is likely well aware of the structural constraints and dilemmas the Lee administration faces.'