The conflict between South Korea and Japan is now currently escalating; it started in earnest from the court rulings made by South Korea last year. When the South Korean Supreme Court brought up the 2013 verdict that Japan’s Mitsubishi Heavy Industries Ltd should indemnify 10 South Koreans forced into labor during World War Two, it reignited the conflict between the two nations.
The relationship between them has declined since then.

Rejecting the court’s decisions, Japan stated that it violated the 1965 Treaty on Basic Relations and agreement between the two countries. South Korea has been removed from Japan’s white list, which is a list of trusted trading partners. Japan restricted three chemicals that are crucial for the manufacturing of semiconductors in South Korea: fluorinated polyamides, photoresists, and hydrogen fluoride. It is likely that South Korea’s economy would be greatly impacted in result, since semiconductors have long been exported globally in large quantities.

As a result, Koreans are expressing their anger by boycotting Japanese products. This had a huge effect on the sales of Japanese goods: Japanese beer sales have dropped between 21-24%. Uniqlo(a popular clothing brand of Japan) sales have decreased by 40%. According to pollster Realmeter, over 6 of 10 Koreans are participating in boycott of Japanese products.

While the dispute between South Korea and Japan would depress the global economy, there is hope that the two countries achieve national unity through handling out the historic grievances.