Boycott Effect: South Korea Imports of Japanese Beer Down

Over escalating trade dispute with Japan, South Korea imported beer worth only $4.3 billion from Japan during July

Written by: Arslan Butt • Wednesday, August 7, 2019 • 1 min read

• Last updated: Wednesday, August 7, 2019

Over escalating trade dispute with Japan, South Korea imported beer worth only $4.3 billion from Japan during July, 45% lower than it did in the previous month. In June, South Korea had imported Japanese beer worth $7.9 million, while in July 2018, it had imported $6.6 million worth of beer from Japan.

This follows Japan’s decision to curb exports of key raw materials used by South Korean tech companies. This prompted a viral campaign among South Korean consumers to boycott Japanese imports, including automobiles, beer, and even cancel travel plans to Japan.

Late last week, Japan removed South Korea from its trade whitelist. In retaliation, the government has agreed to increase investments into R&D to reduce its dependence on the Japanese markets for these raw materials. The reduction in beer imports will prove costly to Japan as South Korea imports 61% of the beer exported by Japan.

This follows a sharp decline in sales of Japanese automobiles in South Korea. With the trade war between US and China raging on and wreaking havoc, can Japan afford to prolong and further escalate its trade dispute with South Korea?

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.