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S. Koreans boycott Japan exports

Trade disputes, court ruling set off the widening conflict by HYUNG-JIN KIM THE ASSOCIATED PRESS | August 2, 2019 at 2:05 a.m.
South Korean business owners rally last month in front of the Japanese Embassy in Seoul, South Korea, calling for a boycott of Japanese products to protest Tokyo’s tightening control on exports of materials needed in South Korea’s technology industry.

BUNDANG, South Korea -- When Lee Kyung Eon and her friend recently scrapped their plans to go to Japan for their summer vacation and paid a $135 penalty for canceling plane tickets, they joined a growing public campaign in South Korea to boycott Japanese goods and services.

"We intended to do something that is unhelpful to Japan even a little bit," said Lee, a 26-year-old office worker in Bundang city, just south of Seoul. "Many people told us we did something really good ... but some with strong patriotic spirits said we shouldn't boast of things that we have to do."

A widespread anti-Japan boycott has gained ground in South Korea since Tokyo on July 1 tightened its control of exports of three chemicals used to manufacture semiconductors and display screens -- key export items for South Korea. The boycott could worsen as Japan is expected to expand its export curbs to other materials as early as today by removing South Korea from a list of countries granted preferential trade status.

South Korea accuses Japan of retaliating over local court rulings last year that ordered two Japanese companies to pay compensation to former Korean employees for forced labor during Tokyo's 1910-45 colonization of the Korean Peninsula. Japan has denied that, saying its action was taken out of national security concerns.

Some question whether the boycott, mostly targeting consumer goods, can really hurt the Japanese economy. Others worry the boycott could only aggravate the animosities as it may trigger a backlash from Japan.

But others say the campaign exposes the bitter resentments many South Koreans still harbor against their former colonial master. A recent survey suggested 80% of South Koreans are reluctant to buy Japanese products.

Angry South Koreans have taken to Instagram and other social media, posting videos with their canceled Japan-bound plane tickets, sharing information on which Japanese companies operate in South Korea and expressing their support for the boycott.

There have been some consequences.

HanaTour, the largest travel company in South Korea, said its daily number of reservations for Japan trips has dropped to about 400-500 from 1,000-1,200 late last month. Other tour agencies have reported similar or lower booking figures for Japan tours.

Last year, about 7.5 million South Koreans visited Japan, making it the most popular destination. The state-run Korea Tourism Organization said it has no data on how many South Koreans traveled to Japan this month.

At hypermarkets and 24-hour convenience stores, the sales of Japanese beer have nosedived. Beer is the most popular among Japanese products. For example, at E-mart, the largest retailer in South Korea, the sales of Japanese beer from July 1-24 declined by about 38% from the previous month. Tens of thousands of small supermarkets and convenience stores across South Korea have stopped selling Japanese beer and other products altogether.

Customs officials said the imports of Japanese cars from July 1-20 was estimated at about $46 million -- a 32% decrease from the same period last year. Fast Retailing Co., which operates casual-wear retailer Uniqlo, was forced to apologize last week after inviting criticism in South Korea over the remarks by one of its executives that the boycott won't last long.

"Even without Japanese products, there are still lots of things to sell and customers aren't actually looking for Japanese products," said Dan Kil-su, owner of Seoul's Heemang supermarket who removed all Japanese products from shelves on July 5.

One of the store's regulars, Chon Jong Lee, supported Dan's action.

"I think I originally have stronger anti-Japanese sentiments than other people. I have really a bad feeling toward them," Chon said.

Past anti-Japanese boycotts didn't last long, but some say Japan's expected new exports limits could amplify the crisis.

"The boycott isn't helpful in resolving the conflicts, though some may feel cool by venting their anger at [Japanese companies]," said analyst Lee Sangho at the Seoul-based private Korea Economic Research Institute. "If public sentiments [in both countries] get worse, we may see a situation that spirals out of control."

There have been anti-Japanese rallies in South Korea over the Japanese trade curbs, but none have yet turned violent. Two men in their 70s have set themselves on fire in an apparent protest against Japan. One died and the other, who set himself ablaze on Thursday, was in critical condition.

Lee Myon-woo at the private Sejong Institute near Seoul said the boycott will likely have a limited effect on the Japanese economy. He also said that the lower number of South Korean tourists to Japan will probably be compensated for by Chinese and other foreign visitors.

Some worry the boycott will eventually undermine the South Korean economy because a withdrawal of Japanese companies would lead to their South Korean employees losing their jobs, while a fewer number of tourists would incur losses for South Korean tour agencies.

Ahn Kyung-su, a researcher in Seoul who plans to visit Tokyo this weekend for his summer vacation, called the boycott "anachronistic" and illogical. "Our TV stations mostly use Japanese-made cameras. So do we have to stop watching their programs?" Ahn asked.

Japan hasn't yet reported a similar eruption of anti-South Korean sentiments. K-pop superstars BTS' four concerts in Japan this month reportedly drew a total of 210,000 spectators.

At Shin-Okubo, a major Korea Town in downtown Tokyo, business was as usual this week, with many Japanese looking for K-pop music, Korean food, cosmetics and other merchandise.

The two countries are closely linked to each other culturally. Many South Koreans like dining at Japanese restaurants, watching Japanese animation films and traveling to small towns in Japan.

Information for this article was contributed by Mari Yamaguchi of The Associated Press.

Business on 08/02/2019

Print Headline: S. Koreans boycott Japan exports

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