S.Korean imports of Japanese beer nearly halve as consumer backlash grows

Monami

07/08/2019 04:24

By Sangmi Cha
    SEOUL, Aug 7 (Reuters) - South Korean imports of Japanese
beer slumped 45% in July from the previous month in the wake of
a consumer boycott sparked by an escalating political and
economic dispute between the two Asian neighbours, data showed. 
    Japan shipped $4.3 million worth of beer to South Korea in
July, down from $6.6 million a year earlier and $7.9 million in
June, according to preliminary customs office data provided by
lawmaker Kim Jung-woo to Reuters.
    On July 4, Japan tightened export controls for materials
used to make chips, South Korea's top export item, intensifying
a row over wartime forced labour and inviting a consumer
backlash in Korea. 
    Such anger has prompted a widespread boycott of Japanese
products and services, from beer, clothes and cars to travel. 
    Many supermarkets and convenience stores have been removing
Japanese items such as beer from their stands and stopping new
orders.
    South Korea buys 61% of Japan’s beer exports, spending 7.9
billion yen ($73 million) in 2018 for the shipments, according
to Japan's finance ministry.
    Asahi Group Holdings  2502.T  said last week the spread of
the South Korean consumer boycott of Japanese goods was
affecting its beer sales as it lowered its profit guidance
slightly.  urn:newsml:reuters.com:*:nL4N24X2DC
    A boycott campaign is expected to grow as Japan is taking
steps to remove Korea's fast-track export status, industry
officials and experts say. 
    Japanese automakers such as Toyota and Honda are bracing for
further sales drops in South Korea in the coming months, after
they posted sharp sales declines last month.  urn:newsml:reuters.com:*:nL4N2510ED 
    A slew of South Korean airlines are also suspending flights
to Japan as they brace for a dwindling number of tourists. South
Korea's second-largest carrier Asiana Airlines Inc  020560.KS 
and budget carrier Eastar Jet said on Wednesday they would
temporarily halt a combined four more flights between Korea and
Japan. 

 (Reporting by Sangmi Cha; Additional reporting by Heekyong Yang
in Seoul and Kaori Kaneko in Tokyo; Editing by Hyunjoo Jin and
Muralikumar Anantharaman)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))