Japan's tightening of export controls on South Korea have so far been a case of "the bark was worse than the bite," with only limited fallout for South Korea's economy, according to Citigroup Inc.
Japan's tighter scrutiny of exports of three key materials used in the chip industry and Tokyo's removal of its neighbor from a list of trusted trading partners have had little impact on South Korea's imports of industrial and capital goods, Citigroup economists Marie Kim and Jeeho Yoon wrote in a report Friday.
The moves have, however, spurred South Korean efforts to reduce economic reliance on Japan, the analysts wrote.