Song Min-su, a Japanese major in his final year at Hannam University, south of Seoul, has watched in dismay as a dispute between South Korea and Japan over wartime forced labor has spiraled into a damaging political and economic row.

Song, 25, has been pursuing his dream of working in Japan. With historic labor shortages in Japan, he had been confident he would avoid the tough job search many of his peers faced at home in South Korea, where youth unemployment is growing.

But curbs in Japan on the exports of high-tech materials to South Korea have escalated a bitter diplomatic feud between the neighbors, sparking boycotts that have hit the sales of Japanese cars, beer and other goods in South Korea, as well as travel to Japan.