Japan Got Hit By South Korea Over WW2 Dispute

South Korea made a pledge that they would not be defeated once more by their neighbor country, Japan when the already critical trade issues became further worse between the two countries. Japan and South Korea both had been in a long term trade relationship which until recently did not show unhealthy knots in WW2 Dispute. With the worsening of the hostility between the two countries, the export-import scenario is likely to get impacted immensely.

Japan’s cabinet has approved the removal of the fast-track export status that South Korea has enjoyed so far. This caused an immediate repercussion and South Korea charged back venturing their voice. 

The Background

Japan has a history of colonizing the peninsula of South Korea before WW2. Pointing at this specific incidence, Moon mentioned the words that they would not be defeated once more by Japan. Though the two countries have a fair trade relation for a substantial time, discontents shadowed their transactions ever since the WW2.

Kim Hyun-Chong further enhanced the agitation by declaring Tokyo to be the most significant difficulty in the path of establishing peace between North and South Korea. By calling, the moves of Japan as a public affront, Kim intensified the severity of the situation.

The Local Market Impact

Japan is likely to experience an export setback for the initial period of time as the exporters will now have to revise the paperwork to get a permit for export to South Korea. This will surely axe the volume of exports for Japan substantially for quite some time. 

 According to the statement of the finance minister, Hong Nam-ki, South Korea will make sure that Japan slips from the white list of foreign trade partners and will also file a complaint to WTO (World Trade Organization) to deal with the powers exercised by Japan in the domain of international trade.

Picking Japan out of the list of friendly nations marked the last nail that soured the relationship between the two eastern superpowers.  

Japan’s position

Japan axed the trade volume of three high-tech materials that are extensively used for manufacturing display panels, memory chips and many such. This move surely threatened the global supply of those materials. Japan curtailed the trade volume of such materials to South Korea specifically citing security reasons.

The US Involvement

Mike Pompeo, the U.S. Secretary of State, mentioned that the move was an unfortunate one. He also added that the US expected a more diplomatic solution out of this situation which Japan worsened further. The tripartite discussions between Japan, South Korea, and their ally, the US resulted in utter vain when Japan barred the trade margins. 

The Long Term Effect

What this entire series of incidence unfolds to the world politics and trade is building of utter distrust between the two countries, Japan and South Korea. Both the countries play a significant role in determining the international trade volumes of the eastern corner. Hence, such extreme moves by both countries will result in difficulties for the world trade to continue smoothly.

Before the picture becomes irrevocably gloomy, the ally nations of these two countries are expected to come forward to fix the rift and lend the global trade its lost richness.