Today marks the beginning of a new fiscal year in Japan, and it is on this day that I write to say that I believe we are witnessing the winds of change in Japan ― changes that may drastically reshape the world’s third-largest economy.

At the center of the action is Abenomics, a term referring to the economic policies molded by Japanese Prime Minister Shinzo Abe.

Investors from all over the world have flocked to the Japanese stock market this past year, pushing the benchmark Nikkei stock index to almost 15-year highs. Overall, the Nikkei has gained 30 percent since January.

A weaker yen is definitely helping the economy ― just look at the anticipation for better corporate earnings ― but we should credit Abe’s government for pushing ahead with a horde of reforms, including the all important increase in employee wages.

The central bank has been on Abe’s side and forthcoming with stimulus measures when necessary. Some of the economic data, however, such as industrial output, is still weak and the country will have to further address it.

For Korea, a stronger Japanese economy has many implications. As a major trading partner, a vital Japan is necessary if Korea is to continue growing. At the same time, however, competition has grown fiercer, especially on account of the weaker yen. Experts and global firms alike also say that despite Korea’s progress in the IT sector, Japan is still the place they would go for reference.

Korea is home to new experiments and changes, but it has yet to fully gain the trust of international investors. The country would do well to take a page from how Japan has been able to build credibility.

Some of this may have to do with nationality. I am a firm believer in this ― due to the unique national environment that people are born and raised in, they grow up with distinct national characteristics.

In Japan, people don’t want to lose face and they don’t want to lose trust. To lose these things would be quite devastating.

In Korea, it is not difficult to see companies or people who, after committing abhorrent crimes, stage comebacks. Companies that sold defective goods would quietly change their names and their brands, and creep back.

This is not likely to happen in Japan. Japanese mothers tell me if they saw reports of tampering or any other foul play, they would never trust that brand again.

If Japan is able to jumpstart its economy while maintaining its high market standards, then it will once again hail as a leader, and not the ghost of one.

But from the viewpoint of a foreigner, there are lingering concerns. The most significant is the overall lack of change. This may sound ironic, and even a bit contradictory since I believe great change is taking place in Japan.

I cannot claim to know everything about Japan, but sometimes ― a fleeting look ― the perception of a newcomer can be accurate. And from what I have seen, and also deduced from the people I have met here, I think it would be safe to say change is not a popular word here.

Any new attempt must be honed over and over again until it has been molded to closely resemble its predecessor. Verification procedures are lengthy and detailed, with red tape everywhere. This is actually the driving engine behind Japan’s reputation.

In the 21st century, however, the adherence to rules and regulation is becoming something of a hindrance. There is no such thing as “let’s try it out and see” in Japan. This means entrepreneurship is very rare.

I was recently in Hawaii for a vacation where I saw some Korean cosmetic brands in Sephora, a major U.S. cosmetics outlet. I asked the sales manager why they sell them and she said some of the clients seemed to like them, so they thought they would give it a go. And this was not even a well-known Korean firm they were talking about.

I am sure this is not all of the story, but the little incident shed some light on how different we are in terms of approaching new business.

I, for one, hope to see more changes in Japan. I am less positive about the changes taking place in the country’s political arena, but that is for another time.

For now, all eyes are on Abe and his nation to see whether Japan can make a turnaround. 

By Kim Ji-hyun

Kim Ji-hyun is The Korea Herald’s Tokyo correspondent. ― Ed