Mobile Phone Prices To Go Up? (Japan – Korea Trade War)

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The U.S.-China trade war is inflicting the most damage to the global economy, But it’s the trade spat between Japan and South Korea that signals the larger troubles ahead for the world.
The two Asian countries are currently locked in a trade dispute.
It flared up in July when Japan restricted exports of high-tech materials to South Korea which are critical for producing semiconductors and display screens.
Japan put trade restriction on Korean companies purchasing these chemicals from Japan.

Japan argued that these chemicals are being sent to unapproved countries such as Iran and North Korea.

In 2018, Semi conductors made 92% component of South Korea’s export growth.
Henceforth, there is big possibility of the prices of semiconductors to go up.
It will lead to increase the prices of electronic goods, especially the Mobile phones.

NOW THE BIG QUESTION- WHY THIS TRADE WAR?

Tensions between the two countries hark back more than six decades, Since Japan occupied the Korean Peninsula from 1910 to 1945 during World War II.

Both countries signed a treaty in 1965.
But relations continue to be strained over compensation for forced labor by Japanese companies and sexual slavery of Korean women in wartime brothels.

Japan and Korea decided not to criticise each other at International forum.
But many South Koreans were unhappy with the outcome.

It ruled in late 2018 that a number of Japanese companies must compensate a group of South Koreans (or their descendants) who were forced to work.