Japan sanctions threat on South Korea sparks supply chain fears

Companies on both sides worry about further deterioration in vital trade relationship

20190314 Samsung Nano City (Hwaseong) Photo courtesy of Samsung Electronics

A Samsung chipmaking facility in Hwaseong. The South Korean group depends on Japanese suppliers. (Photo courtesy of Samsung Electronics)

SOTARO SUZUKI, Nikkei staff writer

SEOUL -- The prospect that Japan could impose economic sanctions on South Korea over a legal dispute concerning wartime labor cases has raised anxiety in Seoul and among companies on both sides that depend on cross-border supply chains.

South Korea's Foreign Ministry said Wednesday that Kim Yong-kil, director-general for Northeast Asian affairs, will meet here Thursday with his Japanese counterpart Kenji Kanasugi to discuss the issue, in which Japan-based industrial groups have been ordered to compensate forced-labor victims

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