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Japan Downgrades South Korea Trade Status, Raising Tensions

Trade rifts are nowadays taking between almost every nation across the world. While on one hand, the economic trade flow is dealing the blows between China and United States, on the other hand, the feud between Japan and South Korea has intensified over time, especially when Japan stated their decision to strike Korea off their “white list”, thereby restricting trade exchange between the two countries. As expected, the decision by the Japanese government has been widely criticized by South Korean media and business investors, as South Korean President Moon Jae recently pointed at Japan’s self-centered trade decision which has further ruptured the diplomatic relation between the two nations.

Reportedly, this trade decision has been made in response to a previous trade dealing, where the export materials from Japan to South Korea shall be scrutinized and approved on a very specific order for the three materials used in semiconductors, Smartphone, and other electronic commodities. Many market analysts fear that this conflict shall hamper the trade exchange on electronic products in the near future as well. For example, this move by Japan has been labeled as “initialization of economic war” by many South Korean diplomats and the ruling democratic party.

With Japan now all set to abolish South Korea Japanese exporters need to then appeal for authorization for exporting Japanese products to South Korea. Removing Korea from its trade status is claimed to be a well-planned approach by Japan, which had been preceded by Japan imposing stricter rules on exports, one month back. With nearly fifty percent semiconductors and display screens being supplied by South Korea, this trade abolition could ultimately impact the consumers, who might have to pay a higher price to afford electronic and technical products. Protests and anger on the Streets of South Korea are clearly visible, where a man at Seoul has reportedly set himself on fire, and Japanese products are being rapidly being cleared away from the shelves of Korean supermarkets.

Daniel Serrano
Daniel Serrano Subscriber
EDITORIAL MANAGER At Daily Industry Updates

Daniel Serrano had acquired considerable experience in writing and editing publications before recruited by Daily Industry Updates news portal as Editorial Manager. His key task is to conduct effective business reviews based on the most recent business strategies. Due to his stronghold and understanding over finance, marketing, business, and trade-related topics, he is known as a business counselor among the staff. His expertise in business-related topics is quite impressive. His business-related concepts are on fingertips, which aids in illustrating the business-related articles in brief and defined way, clear to even an amateur. He pursued his post graduation in Finance from a UK-based university.

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