Global Economy

South Korea boycott impacts sales at Japanese retailer Uniqlo

Customers exit a Uniqlo store, operated by Fast Retailing Co., in Tokyo, Japan.

Akio Kon | Bloomberg | Getty Images

A recent boycott on Japanese goods in South Korea has had an impact on casual clothing chain Uniqlo’s sales in the country, owner Fast Retailing said on Friday.

A company spokeswoman also said a recent decision to close a store in Seoul was not because of the boycott, but because it had decided not to renew the contract on the property.

The ongoing trade dispute between Japan and South Korea has begun to affect businesses across sectors and could potentially even make a dent in the global economy.

The political disagreement stems from an argument about Japan’s conduct during the second World War, but it’s recently spilled into the economic arena. In early July, Japan restricted exports of materials critical to South Korea’s semiconductor industry, citing national security concerns and a lack of trust in Korea.

— CNBC contributed to this report.


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