Key Facts
• On January 18, 2026, Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, proposed a Japan-Korea Schengen Agreement on KBS.
• The agreement aims to allow free movement between Japan and South Korea, modeled after the EU Schengen Agreement.
• Choi highlighted potential creation of joint travel packages for third-country tourists.
• Estimated economic benefit: 3 trillion won (approx. 320 billion yen) added value to South Korea.
• Choi stated the economic impact on Japan would be even greater.
• In September 2025, Choi suggested forming an economic community between Japan and South Korea based on the EU model.
• South Korea faces low economic growth, with 2024 real GDP growth forecast at 2.0% year-on-year.
Summary
Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, proposed establishing a Japan-Korea Schengen Agreement to boost economic activity by enabling free movement between the two countries. Modeled after the European Union’s Schengen Agreement, this framework would eliminate border checks and facilitate joint travel products for tourists from third countries. Choi emphasized that this initiative could generate approximately 3 trillion won (about 320 billion yen) in added value for South Korea, with even larger benefits expected for Japan. Previously, Choi advocated for a Japan-Korea economic community inspired by the EU to foster deeper cooperation beyond trade. This proposal comes amid South Korea’s economic challenges, including a modest 2.0% real GDP growth forecast for 2024, underscoring the need for innovative bilateral economic strategies.
