South Korea cancels Japan intelligence deal amid trade dispute

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South Korea cancels Japan intelligence deal amid trade dispute
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South Korea will stop exchanging classified intelligence on North Korea with Japan amid a bitter trade dispute, Seoul said Thursday in a surprise announcement that is likely to set back U.S. efforts to bolster security cooperation with two of its allies.

South Korea will stop exchanging classified intelligence on North Korea with Japan amid a bitter trade dispute, Seoul said Thursday in a surprise announcement that is likely to set back U.S. efforts to bolster security cooperation with two of its most important allies in the Asian region.

He said South Korea will formally notify Japan of its decision before Saturday, the deadline for an extension of the pact for another year. Some experts say the tit-for-tat actions could eventually hurt South Korea’s economy more than Tokyo’s. Many big South Korean manufacturers including Samsung rely heavily on materials and components imported from Japan, while Japan doesn’t import many vital materials from South Korea.

Experts said the deal enabled a quicker exchange of information between Seoul and Tokyo, because they had previously exchanged intelligence via the United States. In 2012, the countries nearly forged a similar deal but it was scrapped at the last minute following a vehement backlash in South Korea.

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