USA national security adviser John Bolton will visit South Korea this week after a stop in Japan to discuss the two U.S. allies' deepening row following Tokyo's decision to curb the trade of materials crucial for the production of memory chips to Seoul.
All three countries face an increasingly assertive China and the long-running threat of nuclear-armed North Korea.
"The economic retaliation sets its sights on the South but North Korea will not deal with it as a fire breaking out across the river", Choson Sinbo, a North Korean propaganda website, said in an article.
Japan has denied that the compensation dispute is behind the export curbs even though one of its ministers cited broken trust with South Korea over the labour dispute in announcing the curbs.
E-Mart, the country's largest hypermarket chain, said sales of Asahi, Kirin, Sapporo and Suntory beer fell almost 25 per cent in the first two weeks of July compared with the second half of June.
Also this week, at the request of the Korean government, the World Trade Organization's General Council is slated to discuss the two nations' trade dispute at its meeting on July 23 and 24.
Japan is one of the most hawkish of the major powers on the nuclear-armed North - whose leader Kim Jong Un agreed to a resumption of dialogue with Tokyo and Seoul's major ally the U.S. last month - and has received some of Pyongyang's harshest rhetoric.
"Japan has to make a proper apology and reparation for all the damage and suffering it inflicted on the Korean nation and it should clearly understand that without the apology and reparation, it will never get a ticket for Pyongyang", it added. But the Korean government aims to inform other members of the unfair measures taken by Japan before officially taking it to the Dispute Settlement Body.
An elderly South Korean man died yesterday after setting himself on fire outside the Japanese embassy in Seoul as a bitter diplomatic dispute over wartime forced labour compensation took a fatal turn.
South Korea had proposed providing the plaintiffs in wartime labor lawsuits in South Korea with appropriate compensation by soliciting contributions from Japanese and South Korean firms related to the matters.
A spokeswoman for Moon confirmed Moon had asked Trump for help at their Seoul summit on June 30.
Japanese Prime Minister Shinzo Abe, seen as a foreign policy hawk, has repeatedly asked Trump to seek answers on the fate of Japanese people who Tokyo believes were abducted by Pyongyang.