Japan and South Korea trade relations in deep trouble. As per Kyoto News Agency report , Beer exports from Japan to South Korea fell 99.9% year-on-year in September. Just 588,000 ($5400) worth of Japanese Beer was shipped to South Korea in September 2019.
This is sharp decrease from the approximately 783.6 million yen ($7.2 Million) worth of Beer exports in September 2018.
South Koreans have boycotted various Japanese goods and services – from beer to clothing to vacations – amid the two countries’ deeply personal trade war, which has seen both governments remove each other from their “white lists” of preferred trading partners.
The deep animosity between the two countries has reignited decades of mistrust between them, which began when Japan occupied the Korean Peninsula and ruled it with an iron fist from 1910 to 1945.
The current trade war was triggered by a South Korean Supreme Court ruling last year calling on Japanese companies to compensate Korean laborers during the occupation. Japan’s government says it had already repaid all its wartime debts in a 1965 treaty.
The history of South Koreans’ mistrust of Japan means the trade war has also taken a very personal turn.
Many businesses across South Korea have put up signs explicitly saying that they don’t sell Japanese goods, and some have even banned Japanese people from entering.
Last month, South Korea’s sports ministry asked the International Olympics Committee to ban Japan’s “rising flag” from being displayed at the 2020 Tokyo Olympics – a request that has since been denied.
The trade war also stands to hurt South Korea’s massive electronics industry.
Earlier this year, Japan placed export bans on three key high-tech materials – fluorinated polyimide, photoresists, and hydrogen fluoride – needed to make semiconductors and display screens.
Exports of hydrogen fluoride – the chemical used to clean semiconductors – from Japan to South Korea also fell 99.4% year-on-year to 3.72 million yen ($34,175) in September 2019.
The South Korean government has since pledged to invest in the domestic supply of these raw materials.
News Source : Businessinsider