JAPAN'S ECONOMIC RETALIATION

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Yesterday was a usual day of work for President Moon Jae-in, who cancelled his vacation scheduled for this week. He didn't have any official engagements, but reportedly discussed ways to deal with Japan's economic retaliation with his staff members. Rather than engaging in counter-retaliatory measures, he reportedly leans toward resolving this issue diplomatically.

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After cancelling his summer vacation, President Moon Jae-in paid a special visit to Jeju Island over the weekend. It was a private affair with a minimal number of attendants. Since returning to Cheong Wa Dae, he resumed normal duties. The South Korean leader is known to have been briefed on Japan's export controls by his chief of staff and discussed countermeasures with select presidential secretaries over lunch. They're known to have devised contingency plans in response to additional export restrictions. The plans call for assessing the nation's response capacity by item and business then working on minimizing short-term losses. The termination of the General Security of Military Information Agreement between Seoul and Tokyo has been floating around as a countermeasure. But President Moon remained strategically vague by saying that no decision has been made so far on extending the bilateral intel sharing pact. But everyone agrees the best option is handling the situation diplomatically.

[Soundbite] PRES. MOON JAE-IN(JUL. 15) : "I hope that the Japanese government would cease its unilateral pressure and return to the negotiation table for diplomatic solutions."

Korea is pushing for a foreign ministers' meeting with Japan at the ASEAN Regional Forum in Thailand. The likely date will be July 31st or August 1st, right before Tokyo decides on whether to strip Seoul of its preferential trade status. South Korea is also looking to invite U.S. Secretary of State Mike Pompeo to a tripartite foreign ministers' meeting with Japan's top diplomat.