Left Menu
Development News Edition

UPDATE 1-S.Korean boycott hits Japanese beer imports

Reuters | Seoul | Updated: 07-08-2019 12:39 IST | Created: 07-08-2019 12:31 IST
UPDATE 1-S.Korean boycott hits Japanese beer imports
(Representative Image) Image Credit: Flickr

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 neighbors, data showed. The plunge is good news for rival importers and South Korean brewers but is a worrying sign for Japanese exporters like Asahi Group Holdings, which said last week the boycott was affecting sales and lowered its profit guidance.

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. Japan tightened export controls last month for materials used to make chips, South Korea's top export item, intensifying a row over wartime forced labor and sparking a consumer backlash in Korea.

Many Korean supermarkets and convenience stores have removed Japanese items such as beer from their stands and stopped new orders. South Korea buys 61% of Japan's beer exports, spending 7.9 billion yen ($73 million) in 2018 on the shipments, according to Japan's finance ministry.

Korea's imports of Japanese beer declined 11% in the first half from a year earlier, after nearly quadrupling over the past three years in 2018, according to customs data. Overall, imported beers such as Asahi and Heineken have eroded the dominance of domestic beers in recent years, but they are likely to fall from their peak due to the boycott of Japanese products, an official at a South Korean brewer said.

"Both domestic and other imported beers are expected to share the benefits from the boycott campaign," he said on condition of anonymity because of the sensitivity of the matter. 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.

A slew of South Korean airlines are also suspending flights to Japan as they brace for a dwindling number of tourists.

Also Read: UPDATE 1-Golf-Kim Hyo-joo forges ahead as South Koreans dominate Evian


TRENDING

OPINION / BLOG / INTERVIEW

Uganda COVID-19 response: Was off to a good start but reopening dwindled prospects

Uganda has shown success in using health information to enhance efficiency of disease surveillance, reporting and monitoring. The success, however, has critical challenges confronting it as the country resumes normal activities....

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Videos

Latest News

US STOCKS-Wall Street rebounds as market eyes tech results, strong U.S. data

U.S. stocks closed higher on Thursday, with the technology heavyweights rallying ahead of major earnings reports and upbeat domestic economic data calming investor jitters about surging coronavirus cases. The rebound came after a more than ...

Australia's active COVID-19 cases hit 4-month low

Australian officials said on Friday there just under 200 active cases of COVID-19 in the country, the lowest number in more than four months and well down from a peak of just over 8,000 in mid-August.Officials reported just 11 new infection...

Amazon third-quarter net sales beat estimates as more people shop online

Amazon.com Inc on Thursday reported record profit for the second quarter in a row and forecast a jump in holiday sales, as consumers continued to shop more online during the novel coronavirus pandemic.Shares initially rose 2 in after-hours ...

Odisha: 1 killed, 2 injured while making bombs in Ganjam

At least one person died and two were critically injured in an explosion at a house in Bhimpur village under Badagada police limits in Ganjam district of Odisha, on Thursday. As per police, the three were making crude bombs in the house to ...

Give Feedback