Both the Japanese and Korean economies have an Achilles’ heel: their inability to be self-sufficient in fossil fuels. If this Achilles’ heel is resolved, smoother economic growth can be guaranteed. Japan imports over 97% of its LNG (liquefied natural gas), over 99% of its oil, and over 99% of its coal. However, Japan possesses oil resources capable of instantly becoming an oil-producing nation on par with the Middle East. This massive offshore oil field, comparable to that of the Middle East, is located in an area called “Block 7.” Block 7 is an offshore oil field in the East China Sea, north of Okinawa Prefecture and southwest of Kyushu. The crude oil reserves in Block 7 are equivalent to one-third of those of Saudi Arabia, the world’s second-largest oil producer. Even more astonishing is the total natural gas reserves on the continental shelf where Block 7 is located, which are ten times those of Saudi Arabia.
The seventh oil block is the subject of a territorial dispute between Japan and South Korea. In January 1970, then-South Korean President Park Chung-chul suddenly declared South Korea’s claim to the seventh block. At that time, maritime boundaries were not defined by equidistant median lines between countries. Instead, the boundary was based on the continental shelf, a natural extension of territory. If the continental shelf was considered the boundary, South Korea could almost exclusively claim the seventh block. This boundary theory was based on the 1969 ruling by the International Court of Justice in the North Sea Continental Shelf case. President Park Chung-chul declared his claim based on this standard. However, South Korea at the time lacked the technology to develop the oil field independently. While the international community favored South Korea’s claim, Japan proposed joint development. Because Japan provided economic aid to South Korea, it appears Japan used diplomatic leverage, including the suspension of aid. Ultimately, South Korea accepted Japan’s proposal, and the Japan-South Korea Continental Shelf Agreement was signed in 1978.
The reason crude oil extraction won’t begin immediately is due to an agreement with South Korea. The Japan-Korea Continental Shelf Agreement restricts the independent development of Block 7. Another reason is that the theory of natural extension of the continental shelf is outdated, and the equidistant median line has become the global standard. In the case of two countries facing each other, the median line has become the basis for the maritime boundary, which is the international standard. According to the new world standard, Block 7 will become Japanese property after the 50-year agreement expires. After the agreement expires (2028), almost the entire area of Block 7 will belong to Japan. South Korea is protesting Japan’s actions, claiming that “Japan will monopolize the resources.” If it becomes a dispute, things will not move forward. It is morally desirable for both countries to cooperate in the development of Block 7 based on the Japan-Korea Continental Shelf Agreement of 1978. If both countries, which have the capital and technology, combine their wisdom and ingenuity, it is not a dream to become one of the world’s leading oil-producing countries. If Japan and South Korea cooperate in areas such as oil, rare earth elements, and semiconductors, the path to becoming prosperous nations for both sides is open.
