Published: Fri, July 19, 2019
Money | By Ethel Goodwin

BOK cuts key rate to 1.5%

BOK cuts key rate to 1.5%

The accord confirms the complete and ultimate resolution of issues related to war-linked and other claims between the two countries and between the two peoples, while outlining Japan's economic aid to South Korea.

"Considering the volume of trade between South Korea and Japan and the connections between companies and industries, it's hard to say the materialization of export restrictions and their expansion would have a small effect on (our) exports and our economy", said Lee.

With no mutually palatable agreement, Tokyo has pushed for third-party arbitration, which Seoul has rejected.

With more South Koreans boycotting Japanese products over Tokyo's export curbs, . local consumers are now turning their backs on trips to Japan. "However, words and emotions can not solve this problem", Hwang said.

"I think you understand the issue, you understand the challenges ahead".

The U.S. Fed has hinted at a possible rate cut at its next rate-setting meeting, slated for July 30-31.

"Japan's export regulations were partly reflected in macroeconomic assessment, including growth", the governor said.

Tokyo's move to exclude Seoul from its white list of countries on national security grounds would require Korean companies to seek export licenses for a wider range of technologies, which could result in additional costs and time. "/ has sent letters to local partners urging them to stockpile more Japanese components in case Tokyo expands its export restrictions, a source with kno".

South Korea has rejected the Japanese claims and proposed an inquiry by the United Nations Security Council or another global body on the export controls of both countries. The measure was taken in apparent protest of the Seoul top court's decision on wartime forced labor.

Still, the rate cut may come as a surprise to many who expected the central bank to wait at least until the U.S. Fed lowers its own rate.

With no signs of a thaw of their relations, South Korea called for United States mediation to reverse Tokyo's export restrictions while preparing to raise the issue at a WTO meeting, slated for earlier next month.

"We are considering various scenarios depending on how Japan will move", South Korea's Yonhap news agency cited an anonymous diplomat as saying.

Seoul could reconsider its intelligence-sharing deal with Japan as relations between the two USA allies deteriorate, Yonhap quoted a South Korean national security adviser as telling lawmakers on Thursday.

Contrast that with the number of South Korean visitors dropping 3-point-8 percent, . the first on-year decline in five years.

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