Geopolitical news
Japan's PM Abe is unlikely to meet South Korea's Moon at UN in September unless constructive steps are taken by South Korea on labourers, other issues.
The labourers dispute arises after a South Korean court awarded damages to labourers forced to work for Japanese companies during the colonial period nearly seven decades ago.
Japan says they paid restitution in 1965 when it gave Seoul $500M in aid and low interest loans.
Abe has requested a third party arbitration which South Korea has rejected.
South Korea proposes they form a joint fund to pay the court awards.
That ruling has led to Japan restricting exports to South Korea of three materials that are critical to semiconductors and smart phones. That could disrupt supply chains and drive up prices of memory chips and smart phones.
The fear is that the war could escalate even further with Japan removing South Korea from a "white list" of countries that are exempt from most restrictions on "dual-use" exports.
IN short, trade could be hindered for both countries with knock-on effects to other global countries reliant on goods produced in South Korea.
Proposed solution would be for South Korea to agree to arbitration from a neutral arbiteur. For Japan, they should lift the restriction on exports to South Korea.
For the time being, the news is not healthy and is another trade concern in a world already filled with trade issues.
