Ikeda's second tenure as foreign minister was from 11 January 1996 to 11 September 1997 in the coalition government headed by the LDP politician Ryutaro Hashimoto. Ikeda replaced Yōhei Kōno as foreign minister. Upon the construction of a wharf facility in Takeshima/Dokdo by the South Korean government at the beginning of 1996, Ikeda protested over the construction and demanded that the South Korean government should stop it. His remarks led to angry public demonstrations in Seoul. He led Japan's attempts to solve the hostage crisis in Peru in the 1990s. Ikeda was replaced by Keizō Obuchi as foreign minister on 11 September 1997.