Cold war: Flow of tourists, beer freeze in Japan-South Korea trade

Nov 21, 2019 | News On Japan

Nov 21, 2019 (Nikkei) - From chemicals to beer and travel, the chill in Japan and South Korea's relations is casting a wider shadow on their economic ties, the latest statistics show.

Japanese exports to South Korea plunged 23.1% on the year to 381.9 billion yen ($3.52 billion) in October, Japan's Finance Ministry revealed Wednesday.

This marks the 12th straight month of year-to-year decline. Trade has been down since the beginning of the year due to the U.S.-China trade war, but the situation escalated further after Japan imposed export restrictions on certain chipmaking materials in July.

Japan now requires case-by-case approval for South Korea-bound shipments of three chemicals, including hydrogen fluoride, arguing that they can be diverted for military use. South Korea has strongly disputed the move, which hurts its key semiconductor industry.

The export ban has led to a Japan boycott by everyday South Koreans. Asahi Breweries was the top-selling foreign beer maker in South Korea from 2011 to 2018, but sales of its signature Asahi Super Dry are set to fall there this year.

Personal travel between the countries is down as well. The number of South Korean visitors to Japan dropped 65.5% on the year to 197,300 in October, the Japan National Tourism Organization said Wednesday. This is almost as steep as the 66.4% decline in April 2011, right after the Fukushima disaster.

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