TOKYO/SEOUL -- With Japan
set to delete South Korea from its
list of trusted trade partners,
manufacturers in both countries
are bracing for wider disruptions
to
their cross-border supply chains.
The Aug. 28 removal will mean
more red tape for Japanese exports
to South
Korea, whose companies
are adding months of extra
inventories of key
materials
and hinting they may find alternative sources.
The change in status could hit a
broader range of South Korean
sectors --
including fuel cell vehicles,
a priority for Seoul -- than existing
Japanese curbs on exports.
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