Japan’s economic growth can be attributed to the domestic situation in Korea. In August 1945, Japan was a burnt-out wasteland. 1950 was the year that Japan’s economic growth began. On June 25, 1950, North Korean forces crossed the 38th parallel, the military demarcation line between North and South Korea, and invaded the South. The North Korean forces launched a surprise attack with Soviet-made tanks, advanced with unstoppable force, and occupied Seoul on the fourth day of the war. The North Korean forces continued their fierce attack, at one point approaching Busan, at the southern tip of the peninsula. The United Nations Security Council immediately recognized the North Korean attack as an invasion and announced support for South Korea. The United Nations forces were formed, mainly with the US military, and launched a counterattack with the Incheon Landing Operation in September 1950. The Korean War also had a major impact on Japan, which was exhausted after the defeat. The US military mainly procured military supplies from Japan. It was a divine wind for the Japanese economy. The Korean special demand triggered the economic recovery of Japan, and industrial production recovered to prewar levels.
Korean society has achieved various developments much faster than Japan over the past few decades. In 2020, per capita GDP was $42,000 in Japan and $44,000 in South Korea, calculated at purchasing power parity. In terms of flow, there is no difference between Japan and South Korea, or South Korea has even surpassed Japan. The Japanese and South Korean economies have an Achilles heel. That is, they are not self-sufficient in fossil fuels. The tendency to rely on energy imports is a weakness shared by both Japan and South Korea. If this Achilles heel could be resolved through cooperation between Japan and South Korea, smoother economic growth would be guaranteed.
There is actually such a good deal. Japan has enough fossil fuels lying dormant to instantly become an oil-producing country on par with the Middle East. This super-giant offshore oil field, comparable to that in the Middle East, is located in a place called “Area 7”. Area 7 is an offshore oil field in the East China Sea, north of Okinawa Prefecture and southwest of Kyushu. The crude oil reserves in Area 7 are estimated at 100 billion barrels. 100 billion barrels is equivalent to one-third of the reserves of Saudi Arabia, the second largest oil field in the world. What’s even more surprising is that the natural gas reserves on the entire continental shelf where Area 7 is located are about 175 to 210 trillion cubic feet. These 175 to 210 trillion cubic feet are 10 times the reserves of Saudi Arabia. If this is developed through cooperation between Japan and South Korea, it is not a dream to go from being an oil importing country to being an exporting country. In the seas of Japan, there is a super-giant offshore oil field comparable to that of Saudi Arabia.
