After imposing new restrictions on exports from the prime minister of Japan, the tensions between Seoul and Tokyo increased. These export restrictions might hit the tech industry of South Korea. In the reaction of the Japanese restrictions, few Korean people start to boycott the Japanese goods.

As the two largest economies of the world, China and the United States, continued their trade dispute, Asia’s two leading economic players to seem to come closer to their own economic war because of political conflicts.

Director for Asia at political consultancy Eurasia Group, Scott Seaman, said that the two governments of the countries would involve in a revenge exchange of revengeful measures for at least the many months that more sours bilateral relations.

The current rise appears in part to having created by Prime Minister of Japan Shinzo Abe and President of South Korea Moon Jae-in failing to grow progress on outstanding differences at G-20 summit of last month.

Seaman stated that Abe seems to have particularly irked due to the failure to remove the disputes over the handling of latest court rulings of South Korea awarding harms to claim of Korea to have forced to work for firms of Japan during World War II.

Imposing Trade Restrictions from Japan

The Ministry of Economy, Industry, and Trade of Japan stated on last Monday that Tokyo would apply latest licensing procedures and policies on the export and transfer of controlled products and their related technologies to South Korea.

The statement also said that with the careful consideration between the related Japan ministries, the Japanese government could not help but said that the South Korea-Japan relationship of trust as well as in the department of export control and regulation significantly undermined.

Moreover, Japan removed South Korea from its white list countries (states that Japan believes to have reliable export control systems). The current stress between the two nations stems from over six decades of resentment from South Korea toward Japan. Throughout the occupation of Japan of the Korean Peninsula from 1910-1945, several Korean women forced to sex work in armed brothels. During World War II, the term ‘comfort women’ usually used for these women forced into sex work by Japan.

In the 2015 deal, Japan makes an apology to the woman and gives one billion yen (about $9.4 million) fund for their help. On the other hand, the Korean advocacy groups for comfort women criticized the fund, and the government of South Korea dissolved the fund on Friday in spite of the warnings of Japan that this action might hurt bilateral ties.

Souring Relation between Japan and South Korea

Changes of Tokyo to its approach to the trade of South Korea went into effect on Thursdays and now the exporters of Japan required to apply for a few individual shipment’s licenses to South Korea. That shipments include exports of chemicals typically used for metals manufacturing, pharmaceutical intermediates, and making refrigerants and every so often for semiconductor preparations.

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Seaman wrote that it is an expectation that the process of exporting goods from Japan to South Korea may complicate and slow down. He added that in principle, bulk licenses covers three years of shipment. In late August, the removal of South Korea from the whitelist countries of Japan set to take effect.