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Japan-South Korea rift

Japan-South Korea: Icy diplomacy threatens ever-better business ties

74 years after WWII, neighbors face crisis of 'cold politics, cold economics'

Anti-Japan protests and a spreading boycott in South Korea are casting a pall on Japanese business interests. (Montage by Hidechika Nishijima)

SEOUL -- Japanese-South Korean relations have long been uneasy due to the painful legacy of Japan's colonial rule, but for the most part the countries' political clashes have not damaged their common business interests. Now, as both sides mark the 74th anniversary of the end of World War II -- when the occupation ended --  that appears to be changing.

This time, tensions over historical grievances and trade threaten to chill both diplomatic and economic ties.

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