World News: 08:47 GMT Sunday 4th August 2019. [Yahoo Business News Feed via SPi World News]
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. South Korean Prime Minister Lee Nak-yon on Sunday urged Japan to correct its “reckless and risky” decision to curb exports to the country, saying that the international community is concerned about security in Northeast Asia after the latest developments.Japan is carrying out an “economic attack” against South Korea after deliberately dismissing diplomatic discussions with the country as well as arbitration by the U.S., Lee said. He was speaking at a high-level meeting with South Korea’s presidential office, government officials and ruling party lawmakers to discuss countermeasures to Japan’s export restrictions.Tensions between the two nations worsened this week as Japan removed South Korea from a list of trusted export destinations, in a move that will hit the chip and display industries that are the backbones of the South Korean economy. South Korea has responded by saying it will take Japan off its preferred-trade list.South Korea plans to earmark at least one trillion won ($835 million) in next year’s budget to support local parts makers and material suppliers that will be affected by Japan’s decision, ruling party lawmaker Cho Jeong-sik said after the meeting. On Friday, the parliament approved an extra budget that included about 273.2 billion won as a response to Japan’s export restrictions.Prime Minister Lee reiterated that the government will support local businesses so that they can break away from their dependency on Japan.In Japan, the Ministry of Foreign Affairs warned Japanese citizens in South Korea to stay away from demonstrations. It also warned them to be careful in visiting places in the country that are associated with Japan.(Adds lawmaker’s comment in fourth paragraph and Japan’s travel advisory in final paragraph.)To contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Shamim Adam at email@example.com, Magdalene Fung, Stanley JamesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2019. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.