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Japan Removes South Korea from 'White List,' Escalating Trade Dispute

William Gallo

   Updated on Aug. 2, at 2:32 a.m.

   SEOUL -- Japan has removed South Korea from a list of its preferred
   trading partners, a major escalation in a trade dispute rooted in
   historical tensions.

   The Cabinet of Shinzo Abe, Japan's conservative prime minister, Friday
   approved plans to remove South Korea from the list of so-called "white
   countries" with preferred trade status.

   Beginning Aug.28, Japanese companies must now seek case-by-case
   approval from Japan's trade ministry before shipping certain products,
   which could be diverted for military use, to South Korea.

   South Korean President Moon Jae-in called the move "selfish" and a
   "grave challenge" to Korean-Japan relations, warning it could damage
   the global economy.

   Earlier, a South Korean presidential Blue House spokesperson vowed a
   "resolute" response.

   Japan last month restricted exports of high-tech materials to South
   Korea. The materials are used to produce semiconductors and displays in
   smartphones and other electronics that serve as the backbone of South
   Korea's export-driven economy.

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