S. Korea-Japan trade hit by frayed bilateral ties: report

Trade between South Korea and Japan is worsening due to tense relations between the two countries over historic and territorial issues, a poll showed Wednesday, raising concerns that political issues are negatively affecting the two's economic ties as well.

According to the poll conducted by the Korea International Trade Association (KITA), nearly half the buyers of South Korean products in Japan said tense bilateral relations have had an adverse effect on their business.

Among 266 Japanese entrepreneurs, 46.7 percent said they saw a decline in business deals with South Korean firms as a result of uneasy ties between Seoul and Tokyo.

Relations between the two countries have remained strained due largely to Japan's refusal to acknowledge and apologize for its past wrongdoings, such as issues regarding former Korean sex slaves, during its colonial rule of the Korean Peninsula from 1910-45.

For South Korean exporters, unfavorable currency exchange conditions were mostly viewed as a major obstacle, but a considerable portion at 30 percent of those surveyed also said worsening Seoul-Tokyo relations were a risk factor for their business this year, the report showed.

Outgoing shipments of South Korea's major food products to its Asian neighbor have actually fallen in recent years.

Exports of makgeolli, a traditional Korean rice wine, plummeted 74 percent last year compared to 2012, while figures for baked goods and processed agricultural products tumbled 53 percent and 39 percent, respectively, according to the report.

"It is necessary for the two governments to improve relations in order to invigorate bilateral economic ties and for South Korean firms to expand their foothold in Japan," said Kim Eun-young, head of KITA's Tokyo office. (Yonhap)