In the recent time, Takeshi Iwaya—Japanese Minister of Defense—said that South Korea’s verdict to end an intelligence-sharing truce was unfortunate and showed it has failed to realize the increasing national security menace posed by North Korean missiles. Iwaya said, “North Korea’s frequent missile tests threaten national security and cooperation amid Japan-South Korea and with the U.S. is critical. We robustly urge them to make a sensible decision.” Recently, South Korea said that it was discontinuing the intelligence-sharing pact with Japan, further straining relations amid Tokyo and Seoul in the midst of a battle over South Koreans who were forced into labor at the time of Japan’s wartime.
The relations between the East Asian neighbors are already at their lowest in years before Seoul’s verdict to end the GSOMIA (General Security of Military Information Agreement). The clash has spilled affected on the trade, with Japan enforcing limitations on exports of semiconductor components to South Korea and eliminating it from a list of countries given special trading terms. Under the GSOMIA—which is due for usual renewal—the two nations shared data on the menace posed by North Korea’s nuclear and missile programs. Ending the pact means South Korea and Japan might have to revert to sharing intelligence with the U.S. military.
On a related note, recently, Asian stocks compounded as tensions in Japan-South Korea escalated. Asia Pacific markets compounded as financiers looked further to an important speech from Jerome Powell—the U.S. Federal Reserve Chairman. In China, the Shanghai Composite surged by 0.21% in early trade, whilst the Shenzhen Component advanced by 0.13%. On the contrary, the Shenzhen Composite lost by 0.21%. Hong Kong’s Hang Seng index recovered by 0.14% and was in positive territory. In Japan, Nikkei 225 rose by 0.32%, whereas its Topix index added by 0.30%.