Q. Keidanren is well known both domestically and internationally as Japan’s business federation. Could you please tell us about the activities of Keidanren both in Japan and abroad?

A. Keidanren (Japan Business Federation) is a comprehensive economic organization with a membership consisting of around 1600 representative companies in Japan, 106 nationwide industrial associations, and regional economic organizations from all 47 prefectures. Our mission is to contribute to the sustainable development of the Japanese economic society and maintain and strengthen a free and open international economic order.
For this purpose, Keidanren establishes consensus in the business community on a variety of important domestic and international issues for their steady and prompt resolution. At the same time, we communicate with a wide range of stakeholders including lawmakers, government officials, labor unions, and the civil society. By encouraging our members to comply with the Charter of Corporate Behavior, we strive to establish and maintain public confidence towards the business community. We also develop relations with governments and economic organizations abroad as well as international organizations through policy dialogue, with a view to tackling international issues.

Q. Since assuming the chairmanship in 2021, you have demonstrated leadership in addressing various domestic and international issues. Could you please outline some of your initiatives?

A. Since I took office in 2021, I have made it a top priority to balance measures against COVID-19 with economic activities, to revitalize the staggering economy caused by the pandemic. I have also been calling for the realization of sustainable capitalism from a social perspective.
In particular, I have focused on two adverse effects of excessive capitalism. One is the collapse of ecosystems caused mainly by climate change, regarding which Keidanren published the policy proposal “Towards Green Transformation (GX)” in 2022. The other is the problem of inequality, which is addressed in our proposal “Create an ample middle class” published in 2023.
In addition, amid the current major shakeup of the international order, we need to accelerate our efforts to maintain and strengthen a free and open international economic order. To this end, we must further expand and deepen economic partnership agreements and free trade agreements (hereinafter EPAs/FTAs), as well as promote multilateral and bilateral rule-making, in cooperation with the Global South. From this perspective, during my tenure, I have visited not only Korea, but also China, the U.S., and Europe, and exchanged views with governments and economic organizations. As for Korea, in particular, I have been working with the Federation of Korean Industries (FKI), including through the Keidanren-FKI Summit Meeting, towards developing bilateral ties and regional relationship covering Asian as a whole.
In 2024, based on above issues, Keidanren released FUTURE DESIGN 2040, a vision of Japanese society based on the perspective of future generations.

Q. You just mentioned FUTURE DESIGN 2040, which was released last December. Could you please explain the contents of this policy proposal, which apparently indicates the direction Japan should take in the future?

A. Japan faces two major challenges it must overcome. One is the falling birthrate and aging population. The other is being an island nation with scarce natural resources. Against this backdrop, Keidanren released FUTURE DESIGN 2040 to propose a medium- to long-term vision of the pathways Japan should take.
The proposal sets the following three goals for Japan:

1) to build an inclusive and sustainable society that is fair, equitable, safe, and secure, and where diversity is respected

2) to become a powerhouse of both science/technology and trade/investment, and to create an ample middle class through a continuous virtuous cycle of growth and distribution

3) to contribute to maintaining and strengthening a free and open international economic order based on the rule of law, and through proactive diplomacy, thereby building a nation that is trusted and chosen by the international community.

To achieve these goals, we propose six measures as the roles of the government and the business community:

1) realizing an all-generation social security system, including comprehensive reform of the tax and social security systems

2) resolving environmental and energy issues, including green transformation toward carbon neutrality

3) autonomous and sustainable development of regional economies and societies by, for example, promoting extensive cooperation among local governments

4) new value creation through innovation

5) tackling education, research, and labor issues, including the development of global leaders

6) proactive economic diplomacy to establish international rules and to strengthen cooperation with the Global South.

These issues and measures are inter-related and must be pursued from the perspective of overall optimization. Not only the government, but all stakeholders, including businesses, must share an awareness of these issues and collaborate based on the understandings of the public.

Q. I would like to ask you about the international situation. Currently, the world is facing great divisions, such as the confrontation between the U.S. and China and the invasion of Ukraine by Russia. In addition, the international community faces unprecedented challenges like climate change. What is your view of the current international situation? And what is your outlook for the future?

A. The Israeli historian Yuval Noah Harari has identified nuclear war, ecological collapse, and technological disruption as three problems that cannot be solved by unilateralism. In today’s world, we face not only the challenge of climate change but also emerging infectious diseases like COVID-19, neither of which can be tackled by a single country. Harari points out that international cooperation is essential to solve these challenges. However, the world is now facing a crisis of division, such as the U.S.-China confrontation and Russia’s aggression in Ukraine.
In view of this situation, Japan and Korea must further strengthen cooperation with countries and regions that share the values of freedom, democracy, human rights, and the rule of law. The fact that Japan and Korea are lacking in natural resources also makes it essential for us to promote international cooperation.
I believe it is very important to promote a free and open international economic order by achieving free and fair trade/investment, economic security, and addressing climate change issues in an integrated manner. To this end, Japan must demonstrate leadership by promoting rule-making such as EPAs/FTAs. In addition, in terms of economic security, we must develop advanced technologies so that we can maintain and acquire strategic indispensability. Preventing outflows of critical technology is essential, however, such export controls should be kept to the minimum under the principle of “small yard, high fence”, so as not to adversely affect free trade.
As for the climate change issues, we must achieve carbon neutrality through various pathways, taking into account the circumstances of each country. As a business community, Keidanren will continue to promote private-sector economic diplomacy, sharing the importance of these issues with our stakeholders overseas.

Q. The Trump administration, which took office in January, has already had a major impact on the international economic situation. How do you see the Trump administration?

A. I believe that the strong economy and leadership of the United States are essential for the stability and development of the global economy. It is also essential for Japan and Korea that the U.S. commits to a free and open Indo-Pacific region that is based on the rule of law. Keidanren will cooperate in achieving this goal under the Japan-U.S.-Korea Framework. The United States is Japan’s only ally and most important partner, and we have cultivated a close and good relationship over the years. On the economic front, Japan and the U.S. have built strong ties as evidenced by the fact that our direct investment balance in the U.S. (approx. US$800 billion) is the largest in the world for the fifth consecutive year. We hope that under the Trump administration, this strong U.S.-Japan economic relationship will continue to develop further through the promotion of trade and investment.

Q. I understand that since assuming office as Chairman of Keidanren, you have been working to strengthen Japan-Korea relations. Please tell us how you have been doing this and what you have been thinking about.

A. Keidanren has long promoted exchanges with the Federation of Korean Industry (FKI), and since 1983, we have conducted a variety of initiatives, including the holding of summit meetings. Japan and Korea share fundamental values such as freedom, democracy, and the rule of law, and have achieved economic development together under a free trade system. Both countries are scares in natural resources and face common social challenges such as declining birthrates and aging populations. Keidanren hopes to contribute to the expansion of Japan-Korea cooperation in a variety of fields, in cooperation with the FKI.
I have visited Korea more than 300 times for business and have deepened exchanges both publicly and privately. As Chairman of Keidanren, I am strongly committed to the development of Japan-Korea relations. In July 2022, we held the 29th Keidanren-FKI Summit Meeting, the first such meeting in three years following its postponement due to COVID-19. After that, we held the 30th meeting in Tokyo in January 2024 and the 31st meeting in Seoul in October 2024.
In March 2023, Keidanren and FKI announced the Japan-Korea Future Partnership Declaration and established the Japan-Korea Future Partnership Fund as part of our efforts to build future-oriented Japan-Korea relations.

Q. The Japan-Korea Future Partnership Fund has played a significant role in improving and strengthening bilateral relations. Please tell us about your past activities and future plans.

A. Over the years, Keidanren has been in dialogue with the FKI and has promoted various initiatives. In this context, we established the Japan-Korea Future Partnership Fund in 2023. The purpose of the Fund is to further strengthen Japan-Korea relations for the future through the specific joint projects, as part of ongoing moves toward building future-oriented Japan-Korea relations, such as the resumption of shuttle diplomacy between the leaders of the two countries.
The Fund’s joint projects are focused on promoting the exchange of young human resources who will be responsible for the future of Japan-Korea relations and strengthening industrial cooperation. As for the exchange of young human resources, we have been implementing the Japan-Korea High School Teachers Exchange Program. In January 2025, we invited 50 Korean high school teachers to Japan for the second time, and I feel that our two countries have been steadily getting closer with each visit.
Regarding the strengthening of industrial cooperation, Keidanren announced its Startup Breakthrough Vision in 2022 and has been working to increase the number and level of startups tenfold by 2027, while Korea announced its Startup Korea Comprehensive Policy in 2023 and is focusing on supporting startups. The Fund has been holding the Japan-Korea Startup Forum to promote collaboration between startups and large companies in our two countries, among other initiatives. During the networking sessions, we have had lively discussions and have high expectations for the expansion of future collaboration.