Business leaders from South Korea and Japan have urged both governments to find a quick diplomatic solution for the deepening trade disputes, warning of negative economic consequences for both countries.
About 300 businessmen from the two neighbouring countries made the call from the annual conference of the Korea-Japan Economic Association in Seoul, which has served as the leading platform for bilateral co-operation in the business sector.
“The political and diplomatic relations between the two countries have recently been going through tough times with no exit in sight,” the association said on Wednesday. “We strongly urge the two governments to normalise relations via dialogue and open a new chapter in the relations.”
The meeting came as the two countries remained in a diplomatic stalemate with both Seoul and Tokyo reluctant to make a compromise over the escalating trade conflict, despite concern over a possible disruption to global supply chains.
The businessmen — representing some of the countries’ largest companies including Samsung Electronics, Posco and Lotte Group from South Korea and SoftBank, Toray and Canon from Japan — expressed regret that the long-running historical feud between the two countries had spilled over into the economic arena. The dispute flared after South Korean courts late last year ordered Japanese companies to pay compensation for forced labour during the second world war.
Relations between the two countries hit a new low in July when Tokyo imposed export controls on three key chemicals crucial to South Korea’s semiconductor industry and removed Seoul from the so-called “white list” of trusted trade partners. South Korea has responded with its own tit-for-tat measures and has filed a complaint with the World Trade Organization over Japan’s export restrictions.
