[Trade Disputes and Industrial Policy] Are individual preferences for cultural consumption resilient amid political crises?

► Over the past few decades, South Korea and Japan have experienced strained diplomatic relations, often rooted in historical grievances and territorial disputes. It appears that vicious cycles of political disputes and negative public opinions exist in the bilateral relations."

► However, despite the perception that politics hampers economic ties between the two nations, a deeper examination reveals a resilience in their economic relationship.

► Interestingly, it appears that women in Japan play a pivotal role in driving the consumption of Korean products, including travel to South Korea.

► While political conflicts may emerge again, more and more evidence indicate that consumers, in particular Japanese women, and businesses are becoming less susceptible to the disruptive impact of such tensions. This suggests that the era of utilizing historical tensions for political gain may be coming to an end, as it increasingly appears futile in the face of enduring economic interdependence and cultural exchange.

Read more here