Japan – South Korea trade tensions may threaten global market

In response, South Korea has threatened to raise the issue to the World Trade Organization. Their conflict is likely to have a negative impact on the global market. The five-hour meeting between the two sides which took place in Tokyo last weekend seemed to worsen the situation. South Korea said that Japan's strengthened export controls of photoresistors and other sensitive materials used to manufacture semiconductors and display screens could hurt its export-dependent economy and disrupt global supply chains. On July 4, Japan tightened controls on the export of semiconductor materials to South Korea. The move could hit the country's tech industry and economy hard, as memory chips account for a fifth of South Korea's exports.