ONGOING CONFLICTS WITH JAPAN

[Anchor Lead]

With Japan expected to remove South Korea from its "whitelist" of trusted trading partners this Friday, President Moon Jae-in cancelled his 5-day summer vacation that was scheduled to start today. It is the first time the South Korean president cancelled his summer leave, and he is expected to receive reports on the major issues, and work to devise related measures this week.

[Pkg]

The Japanese media reported that a revised plan to remove Korea from Japan's list of countries receiving preferential export treatment will be approved on August 2nd. Once the bill passes the Japanese cabinet and is proclaimed by the Japanese emperor, this second export restriction on Korea will be enforced starting in the fourth week of August. As Korean businesses are feared to suffer more damage, President Moon Jae-in cancelled his summer vacation, which was slated for five days starting today. This is the first time that the president has called off his vacation plan. Although some high-ranking officials insisted that he should take a break, the president made the final decision not to do so. The cancellation suggests that President Moon considers Japan's additional economic retaliatory measure as a serious issue and plans to respond accordingly. Other issues that prompted the decision include North Korea's recent launch of ballistic missiles, the collapse at a club in Gwangju, and the country's extraordinary budget plan. As the conflict between Seoul and Tokyo heads for a showdown this week, former chief presidential secretary for civil affairs Cho Kuk is again appealing to the public to stir up anti-Japanese sentiment. He denounced some Korean politicians and media outlets for sympathizing with the Japanese government's attack on the Korean Supreme Court's ruling and instigation of an "economic war." With Seoul still open to the possibility of finding diplomatic solutions, attention is now turning to whether a bilateral meeting between Korean and Japanese foreign ministers could take place at the ASEAN Regional Forum on August 2nd.