business

S Korea cuts interest rate again as Japan trade row rumbles

8 Comments
By Ed JONES

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8 Comments
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Really? Because of its trade war with Japan? I'm pretty sure other factors have a much larger effect.

Since 2017, Korea had been relying less and less on Japan as a major trade partner and it dropped to being its 4th largest trade partner. How about the trade war between China and the US being the major problem as it is with almost every other country? China and the US account for almost 40% of South Korea's trades. Afterwards its Hong Kong at 8% and Japan at 7%.

5 ( +9 / -4 )

So much for Moon and others on here claiming the trade dispute with Japan - started by Korea - would not affect the Korean economy. Its in free fall.

-6 ( +6 / -12 )

JJ JetplaneToday  08:08 am JST

How about the trade war between China and the US being the major problem as it is with almost every other country? China and the US account for almost 40% of South Korea's trades.

It may not be easy to accept, but South Korea has been relying on Japan in other varied ways than just trading goods. Less opportunities for corporate espionage and other means of technology transfer is a major blow to South Korea who relied so heavily on Japan to get to where it is today. And re-categorising South Korea as not trustworthy enough a destination to receive relaxed export approvals meaning South Korea should look at other options for sensitive high tech materials that it cannot produce on its own. That means looking to Big Daddy China. Lower quality materials - equals lower reliability - equals lower consumer confidence. It's not where Samsung wants to be competing with Huawei who will get priority in any materials trading. South Korea will look back on the 'golden age' of Japanese super-tolerance to South Korean disrespect of co-signed agreements and defiance of North Korean sactions.

It's no surprise that Huawei simultaneously approched Japan to team-up so they can produce devices together . South Korea is nowhere without close ties with Japan. In that they have only a very Chinese authoritarian-style future ahead.

-2 ( +5 / -7 )

@HillClimber

So does that mean that Japan's recent economic forecast downgrade is also for the same reason? What about China, Mexico, EU, and more?

Also, being removed from the list doesn't affect them immediately. That doesn't go into effect until next year.

What I can agree with you on is that Korea relied heavily on Japan to get to where it is. But you are also forgetting, most 3rd world countries did. China also did the same. So did many other 3rd world countries that became advanced economies. It's the natural rule of things. Both economies will hurt from this but the fact that they downgraded their forecast this years is the more in lined with the same reason every country has recently done the same. The US/China trade war damages the world economies more than any other. Also, the EU crisis does the same.

So while you are arguing over potential future ramifications. I simply giving the real reasons as to how this article missed its mark.

2 ( +5 / -3 )

Global phenomenon.  all central banks in easing mode again.  Whole world going the way Japan has done over the last decades.  Fear of recession and currency wars driving this irrational behavior.

5 ( +5 / -0 )

S Korea cuts interest rate again as Japan trade row rumbles

That's like saying "USA - China trade war intensifies as Fijian PM faces corruption probe".

0 ( +3 / -3 )

Hey, a lot of Americans rely on that Fiji water ;)

2 ( +2 / -0 )

Central banks and Governments sell the fear story over deflation, yet they are the only ones who profit from inflation. The price of goods and services generally have fallen exponentially over the last fifty years, that is deflation and the majority of society has benefited greatly but banks can’t make obscene profits without inflation and politicians can’t continue to borrow and squander without it either.

0 ( +0 / -0 )

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