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Japan car sales slump in South Korea as trade row escalates

05 August 2019 11:32 (UTC +04:00)

Sales of Japanese cars in South Korea fell sharply last month as a bitter trade row been the two countries provoked a consumer backlash, APA reports referring to BBC News.

Industry data showed Toyota sales plunged 32% from a year earlier, while Honda's sales slid 34%.

South Koreans have been boycotting Japanese goods after Tokyo tightened export curbs on the country in July.

The dispute escalated last week when Japan said it would drop South Korea from its trusted trade partner list.

The move to strike South Korea from the so-called "white list" was met with anger and threats of retaliation.

Tokyo had already tightened controls on key exports to South Korea, sparking fears over risks to the global electronics sector.

On Monday, the South Korean government outlined plans to invest around $6.5bn (£5.3bn) to try to develop products and materials which it currently buys from Japan.

"We want to turn the crisis into an opportunity for the materials, parts and equipment industry," South Korea's industry minister Sung Yun-mo told reporters.

However the moves - which Tokyo has said are based on national security concerns - have prompted South Koreans to boycott Japanese products and services including cars, beer and tourist trips.

"Showroom visits are declining while consumers are holding off on signing contracts," a Honda Korea official told Reuters, after the release of the July sales data from the Korea Automobile Importers & Distributors Association.