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KEI Spotlight

Parsing the Economic Damage From the Japan-South Korea Dispute

February 11, 2020

In his latest column for the Diplomat Magazine, KEI Senior Director Troy Stangarone noted that the overall damage from the Korea-Japan trade dispute has been limited. He points out that: 

"[B]oth sides took steps to contain the dispute early on. After deciding that it would not renew its intelligence pact with Japan, South Korea announced at the last moment that it would remain in the agreement as long as talks over the export controls were ongoing. Japan announced its first export license for one of the restricted chemicals in August and by October had approved at least one shipment of each chemical. In December, Japan also provided a three year bulk permit for the export of photoresists."

But Stangarone warned that conditions could worsen if Tokyo does not budge on export restrictions and Seoul begins seizing Japanese assets.

Please find the full article here