Economics

Wartime Sex Slave Dispute Resurfaces to Rattle Japan-Korea Ties

  • Japan suspends forex talks, temporarily recalls ambassador
  • Allies of U.S. continue to cooperate on North Korea threat

A statue of a girl symbolizing the 'comfort women.'

Photographer: Chung Sung-Jun/Getty Images
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Just an hour after Japan’s first cabinet meeting of the year, the nation’s top government spokesman surprised reporters by firing a diplomatic salvo at South Korea over a longstanding historical dispute that the two U.S. allies had sought to bury only a year ago.

Chief Cabinet Secretary Yoshihide Suga said Tokyo had suspended talks with Seoul over a foreign currency swap arrangementBloomberg Terminal; temporarily recalled Japan’s ambassador to South Korea; and halted high-level economic talks between the two nations.