Japan Japan - South Korea: Underappreciated Trade Dispute Will Have Far Reaching Implications

摘要

At Fitch Solutions we expect the recent political and trade dispute between South Korea and Japan to be difcult to resolve, given the underlying historic tensions between the two countries. Consequently, this dispute could place a lasting strain on the South Korean semiconductor industry supply chain and consumer electronics industry, as the restriction of exports of key materials is at the heart of Japan’s measures against South Korea. Furthermore, it is also spreading into the consumer sectors, as well as other industries, with boycotts in South Korea of Japanese brands.