Japan-South Korea Trade Row Escalates: Latest Developments

The trade row between South Korea is not only showing no signs of abating, but appears to be getting worse

Arslan Butt•Monday, August 5, 2019•1 min read

The trade row between South Korea is not only showing no signs of abating, but appears to be getting worse. According to recent reports, a boycott of Japanese manufactured goods by South Korean consumers has caused sales of Japanese cars to sink lower during July.

Sales of cars manufactured by Toyota fell 32% lower YoY while sales of Honda cars fell 34% lower YoY in July 2019. Analysts expect sales to decline even further as the call for boycott gains momentum among consumers in South Korea.

In addition, the South Korean government has announced its intention invest nearly $6.5 billion in R&D to reduce its dependence on Japan for key raw materials used in its tech industry. This is the latest retaliation officially by the government in response to Japan removing South Korea from its trade whitelist late last week.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

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.