In this Tuesday, Aug. 27, 2019, photo, Japan's Trade Minister Hiroshige Seko speaks during a press conference in Tokyo. Japan removed South Korea from a list of nations given preferential trade status, a decision when announced earlier has set off a series of actions from both sides that have hurt bilateral relations. (Takuya Hatayama/Kyodo News via AP)

Japan's move to lower South Korea trade status takes effect

August 27, 2019 - 11:16 pm

TOKYO (AP) — Japan's downgrading of South Korea's trade status took effect Wednesday, a decision that has already set off a series of reactions hurting bilateral relations.

Japanese manufacturers now must apply for approval for each technology-related contract for South Korean export, rather than the simpler checks granted a preferential trade partner, which is still the status of the U.S. and others.

Since Japan announced the decision about two months ago, South Korea decided to similarly downgrade Tokyo's trade status, which will take effect next month. Seoul has also canceled a deal to share military intelligence with Japan.

South Korea has accused Japan of weaponizing trade because of a separate dispute linked to Japan's colonial rule of the Korean Peninsula from 1910 to 1945.

Japan denies retaliating and says wartime compensation issues were already settled.

"Relations between Japan and South Korea continue to be in an extremely serious situation because of South Korea's repeated negative and irrational actions, including the most critical issue of laborers from the Korean Peninsula," Japanese government spokesman Yoshihide Suga told reporters.

Suga was referring to South Korea's Supreme Court ruling last year that said the wartime compensation deal, signed in 1965, did not cover individual rights to seek reparations and ordered Japanese companies to compensate victims of forced labor.

Suga said Japan will continue to try to talk to South Korea.

The wrangling has dented what had been a thriving tourism and cultural exchange between the neighboring nations, including Japanese becoming fans of Korean pop music and movies. Some South Koreas are boycotting Japanese goods or joining street protests to denounce Japan.

Hiroshige Seko, minister of economy, trade and industry, said earlier this week that the trade status review was needed for proper checks on exports because of concerns about what could be used for military purposes.

Japan has never specified the security concerns further, or how they originated.

Seko also denounced South Korea's scrapping the military intelligence agreement, called the General Security of Military Information Agreement, or GSOMIA, arguing the trade decision was not directly related to military cooperation.

The intelligence-sharing agreement remains in effect until November. Japan and South Korea have shared information about North Korea's missile launches, the latest of which happened Saturday.

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