Sometimes the metaphors just write themselves. Anyone who saw Japan and Korea battling it out in the semi-final of the Asia Cup will have recognised the real-life rivalry that exists between these two neighbours. 1-1 at full-time, 2-2 at extra time, 3 of the 4 goals coming from penalties or free kicks awarded as tempers frayed and emotions ran high. Pretty much reflects the current relationship between these two economic giants, with Korea in effect wanting to show that anything Japan can do they can do better and Japan determined not to be outdone.
When I was in the UK over the summer I was struck by the number of Korean cars on the road. In the electronics sector, too, Korea is increasingly beating Japan at its own game. That's forced Japanese companies to look to their laurels and increase their innovation, add value and generally seek out ways of retaining and building on their technological lead. News that Korea had signed a Free Trade Agreement with the EU that would give Korean companies a price advantage over their Japanese competitors in EU markets really shook Japanese automotive and electronics manufacturers, who are now campaigning hard for the EU to commit to a similar agreement with Japan. If anything, I'd say that caused greater consternation than the news that China had probably overtaken Japan as the world's second largest economy. Given China's much greater population, that particular development was seen as inevitable, and the areas of mutual competition are limited. With Korea the battle is over the same economic turf.
But the relationship is by no means characterised just by rivalry. On the contrary, there's a lot of mutual admiration and cultural kinship between Japan and Korea, wartime enmity notwithstanding. The top showbiz news in Tokyo this morning was about the break-up of a Korean girlband, while the numbers of Korean visitors to Japan in 2010 were up over 50%. They love one another's food, fashion, films and music, and there is strong respect on both sides for their neighbour's technological prowess. That creates opportunities for UK companies, for whom entry into one market can often be a stepping stone to the other. Many of the market trends in the two countries - and in Taiwan - are similar too: aging societies, shrinking populations, low carbon leadership, strong design-consciousness. If your product is right for one market there's a good chance it will be right for the others too. UKTI has just set up an East Asia Task Force bringing together those three markets to try to identify synergies and optimise the UK position in all three.
In commercial terms there's plenty of room for both Korea and Japan. In the Asia Cup there was only place of one of them in the final. On this occasion it was Japan that triumphed, thanks to a heroic performance by their goalkeeper Kawashima, who saved not just 1 but 3 penalties in the final shoot-out. Now there's a skill we could do with importing to England!
PS Since writing this the final has taken place, and Japan are now the Asian Champions - by a single goal, scored in the second half of extra time by Tadanari Lee, the son of third generation Korean parents. So, Japan and Korea collaborating to achieve world-beating results - sounds like the perfect ending!
Sue Kinoshita
Sue.kinoshita@fco.gov.uk
Director, Trade & Investment
UKTI Japan