A trade dispute is pending between Japan and South Korea. South Korean Finance Minister Hong Nam Ki today threatened retaliation after the Japanese government announced restrictions on supplying South Korean technology companies. „The imposition of such measures can not be excluded,“ said Hong on the radio.
If the conflict swells, it will hurt both economies. Trade Minister Yoo Myung Hee spoke of a „major threat“ to the global economy as global supply chains are disrupted.
The background is the increasing conflict between the two countries over forced labor. In October, the Supreme Court of South Korea ruled that the Japanese steel company Nippon Steel & Sumitomo Metal must pay compensation to four South Koreans who did forced labor for the company during World War II. Japan reacted outraged and called the verdict „unimaginable.“
