Japan says it will remove South Korea from its list of trusted trade partners, deepening a bitter row between the two countries.
The decision to strike South Korea off its so-called “white list” puts fresh trading restrictions on the country.
The trade spat has been fueled by a diplomatic dispute over compensation for wartime labour.
If this is done , it means Japanese exporters must apply for clearance to export a wide range of goods to South Korea.
It is the first country to be removed from Japan’s list of trusted trading partners, which currently has 27 nations, including Germany, Britain and the United States.