Chey Tae-won, Chairman and CEO of SK Group, has introduced a remarkable pitch. He proposes that South Korea and Japan cooperate in importing US liquefied natural gas (LNG). This welcome strategic suggestion comes at a moment when Washington is twisting the arms of allied countries. They have been pressured to increase their purchases of American-made products. Chey made the news public while speaking with Nikkei Asia in an exclusive interview. That exchange happened on May 29 during the Future of Asia forum in Tokyo.
As a prominent figure in South Korean business circles, Chey Tae-won underscored the necessity for both nations to work together in addressing significant trade challenges currently faced with the U.S. His proposal would address the burden of lobbying our trade relations.
Tariff Traps
These problems have been exacerbated by Trump-era tariffs that hurt all industries—including ones inside SK Group.
Chey’s advice comes amid persistent (and futile) U.S. demand that other countries increase their purchases of U.S. exports. This context drives home why her advice is so effective. Such pressures have, unsurprisingly, had an outsized impact on trade policy between the U.S. and its closest allies and trading partners, South Korea and Japan. Chey makes the case for a cooperative purchasing campaign to access energy assets. This strategy focuses on building a coalition so large that it can break the economic pain these tariffs have imposed by punching back.
Liquefied natural gas, one of the most important commodities traded in global energy markets, has been at the center of these trade talks. Chey’s initiative has begun fostering greater cooperation between South Korean and Japanese companies. It encourages a coordinated campaign from all the impacted countries to challenge the tariffs damaging their robust economic interactions with the U.S.
During his remarks, Chey stressed the need for partnership in breaking down these trade barriers. By collaborating, South Korea and Japan can increase their leverage with American suppliers and make a greater impact on their efforts. This joint negotiation can allow them to achieve better terms for LNG purchase.