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🇰🇷 South Korea /Energy & Infrastructure

South Korea and Japan's 7th Block Oil Deal Nears End, China Lurks

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • The 7th Block, a seabed area between South Korea and Japan, faces potential geopolitical conflict as its joint development agreement nears its end.
  • Japan can notify South Korea of its intent to terminate the agreement by June 2025, potentially leading to individual development claims by Japan and China.
  • The 7th Block's potential oil reserves are estimated at 900 trillion won, with the joint development agreement set to expire in 2028 unless extended.
  • The area's jurisdiction has been a point of contention since a 1968 report suggested it as a promising oil-rich region.

The "7th Block," a significant seabed area south of Jeju Island with estimated oil reserves of 900 trillion won, is at the center of a looming geopolitical dispute as its joint development agreement between South Korea and Japan approaches its expiration.

In South Korea, the movie 'Sector 7,' about fighting giant creatures on an oil rig, is a hit, so public awareness of this issue is quite high compared to Japan.

— Yosuke SuzukiJapanese House of Representatives member Yosuke Suzuki raising the issue of the 7th Block during a foreign affairs committee meeting.

The agreement, signed in 1974 and effective from June 22, 1978, allowed for joint exploration and development of the continental shelf. However, with the agreement's termination deadline just two years away on June 22, 2025, both nations have the option to notify each other of their intent not to extend it, leading to its expiration in 2028.

This situation has raised concerns about potential individual development claims by Japan and China, especially given the shifting international maritime law standards towards a 200-nautical mile exclusive economic zone (EEZ) basis, which Japan believes places 90% of the 7th Block within its EEZ.

Japan can notify South Korea of its intent to terminate the joint development agreement starting this June (2025), but there seems to be a growing sentiment in South Korea to extend it.

— Yosuke SuzukiJapanese House of Representatives member Yosuke Suzuki commenting on the differing sentiments between South Korea and Japan regarding the 7th Block agreement.

Adding to the complexity, China has also asserted claims over parts of the area, arguing that the original South Korea-Japan agreement was invalid. China is already developing gas fields in adjacent East China Sea areas under its jurisdiction.

We agreed to maintain close communication in the future during last year's consultations on the joint development agreement between South Korea and Japan.

— Japanese government officialA Japanese government official responding to Suzuki's remarks, while declining further comment on diplomatic matters.

The potential for a scramble for resources, with Japan possibly pursuing independent exploration and China asserting its claims, could turn the 7th Block into a zone of potential conflict. This comes after decades of limited progress, with the last joint committee meeting held in 2024 after a 39-year hiatus yielding no significant outcomes. The situation is further complicated by Japan's potential hesitation to terminate the agreement, fearing it might provoke China into further asserting its claims.

The joint development of the southern part of the continental shelf adjacent to both countries.

— South Korean National Assembly ratification billDescribing the purpose of the South Korea-Japan Continental Shelf Joint Development Agreement.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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