Japan's Prime Minister Sanae Takaichi and South Korea's President Lee Jae Myung met at Horyu-ji temple in January, surprising observers who expected friction between leaders with very different political leanings. The two moved past decades of historical grievances surprisingly fast, signaling a potential thaw in bilateral relations.

Their quick friendship contrasts sharply with the frosty exchanges of previous administrations, where wartime disputes kept ties strained. Choe Sang-Hun, The Times' Seoul correspondent, frames the dynamic as a remarkable shift that few predicted given the deep-seated sensitivities between both nations.

For businesses across the region, warmer relations could lower regulatory friction and encourage cross-border investment. Japanese and South Korean firms have long navigated cultural and political barriers, and this rapprochement may finally unlock supply chain efficiencies that diplomatic tension previously blocked.