Business Journal
April 21, 2021
With relations between Japan and South Korea said to be at their worst since the end of the war, a plan for an undersea tunnel between Japan and South Korea has emerged. This is an infrastructure plan to connect Kyushu in Japan and Busan in South Korea through an undersea tunnel, running railways and other infrastructure.
This is an ambitious project spanning over 200km, which was mentioned by Kim Jong-in, emergency response committee chairman of the People's Power Party, South Korea's largest opposition party. In the mayoral elections in Seoul and Busan held on April 7, candidates from the People's Power Party defeated their ruling party counterparts. Kim, who served as the party's leader, has stepped down, but will the Japan-Korea tunnel plan move forward?
We spoke to Koichi Yokota, Secretary General of the Japan-Korea Tunnel Promotion National Conference.
At the time, Mori Yoshiro was also keen on the Japan-Korea tunnel plan?
--Please tell us about the actions taken by both governments so far regarding the Japan-Korea Tunnel.
Koichi Yokota (hereafter, Yokota): In 2008, a Japan-Korea summit meeting was held between Prime Minister Yasuo Fukuda and President Lee Myung-bak. Following the results of the meeting, a report on the Japan-Korea New Era Joint Research Project was published in 2010. That year marked the 100th anniversary of the Japan-Korea Annexation in 1910. The report made 21 recommendations, one of which was to "promote the construction of an undersea tunnel." This recommendation has great significance.
There are issues regarding historical perceptions between Japan and South Korea, and relations have deteriorated in recent years, but this is not good for the prosperity of either country, or of Northeast Asia as a whole. In 2009, South Korean President Lee announced his national land vision, and over the next 10 years, he conducted research into infrastructure in Northeast Asia. This led to a historic speech by President Moon Jae-in on Liberation Day in 2018 (August 15th), in which he said, "For peace and prosperity in Northeast Asia, I would like to propose a railway community of six to seven countries, including South Korea, North Korea, China, Russia, Mongolia, Japan, and the United States."
--What statements have past Japanese and South Korean leaders made about the Japan-Korea tunnel?
Yokota: In the 1990s, President Roh Tae-woo gave a commemorative speech in the Japanese Diet, in which he said, "Japanese youth will meet in Seoul through the Japan-Korea Tunnel, and then meet in Beijing at the end." Prime Minister Noboru Takeshita also proposed that we consider drilling from Shimonoseki City, Yamaguchi Prefecture.
According to a report by the Japan-Korea New Era Joint Research Project, Prime Minister Yoshiro Mori was particularly enthusiastic about the idea, proposing at the ASEM (Asia-Europe Meeting) in October 2000 that a tunnel be built connecting Japan and Korea, to be named the "ASEM Railway." At summit meetings between Prime Minister Junichiro Koizumi and President Roh Moo-hyun, the South Korean side proposed the construction of a Japan-Korea tunnel three times.
In addition, even non-LDP governments, such as Prime Ministers Tsutomu Hata and Naoto Kan, have mentioned the Japan-Korea tunnel concept, and I have heard that Representative Ichiro Ozawa also gave a lecture at a university in South Korea on the Japan-Korea tunnel concept.
--In the Busan mayoral election, the opposition candidate, whose top candidate mentioned the Japan-Korea tunnel, defeated the ruling party and was elected.
Yokota: Given these results, this issue is likely to become a major issue in South Korea. It may also become a point of interest in the presidential election to be held in 2022.
--First of all, is the Japan-Korea Tunnel a viable business? Some people say, "We don't want the tunnel to become a money pit."
Yokota: Some business people in Kyushu say this isn't a viable business, but I believe it's a feasible project. Currently, there are 26 ports in Japan and six in South Korea, but it takes two to three days to transport goods from ports like Yokohama or Tokyo to Busan or Incheon. However, by using the Japan-Korea Tunnel or land route, transport time and costs could be reduced to about one-third.
The Japan-Korea Tunnel Promotion National Council asked Noda Yoshiyasu, a professor at the Faculty of Law at Seinan Gakuin University and former director of the Comprehensive Planning Division of the National Land Planning Bureau of the Ministry of Land, Infrastructure, Transport and Tourism, to provide a business forecast for the Japan-Korea Tunnel. If the Japan-Korea Tunnel is completed and cargo is accumulated at Busan Port and then transported to ports such as Shanghai, demand is expected to exceed 30 million tons by 2030. If cargo is transported by car train through the Japan-Korea Tunnel, the council's calculations suggest that business revenue of 400 billion yen and profits of 223.5 billion yen could be expected.
The International Highway Foundation has proposed three routes: one that goes via Karatsu, Iki, and Tsushima to Busan via Geoje Island, and one that goes directly to Busan. According to a calculation method based on a survey of predicted usage, it is expected that this route will be viable as a transportation business.
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