Japan’s beer exports to South Korea drop down to zero

Owning to a dispute between Japan and South Korea, the number of beer exports hit rock bottom last month and intensified the trade tensions between the Asian neighbours.

Food exports of Japan were down in October by 58.1%, according to a broadcaster NHK. The Sake shipments dropped more than 90% along with the sale of instant noodles.

Reports allege, the dispute began with a feud over wartime labour compensation and later emerged into a trade row between the two countries.

The feud between the two countries has affected various other industries along with the two in question. These include the auto industry and the industry of electronic suppliers.

It is however the beer market which has been worst affected. According to figures released by news agency Kyodo, Japan shipped 800.34m yen worth of beer to South Korea in October last year.

South Korea provides the largest market for Japanese beer and included 60% of total overseas shipments in the last year.

The tensions between the two countries aggravated in July when Japan imposed strict controls over South Korean exports, targeting materials used in display screens and memory chips which play a significant role in local companies such as Samsung.

The two countries later cancelled each other from their list of trusted partners. This is one of the major attributors for 49% cut down of exports of Japanese equipment which are used in the manufacture of semiconductors.

Furthermore, South Korea agreed to continue the sharing pact of a military intelligence report with Japan last week. The move was welcomed by the US which wants the two countries to put an end to their differences.