Amid concerns icy Seoul-Tokyo relations might lead to an increase in tariffs by Japan, a report shows the possible move would negatively affect South Korea's exports, the lifeblood of the local economy.
According to the Korea Economic Research Institute on Friday, if Japan increases its tariff rate by 30-percent from the current level, South Korea's exports to Japan would drop by almost 8-percent.
Currently, Japan's tariff rate on South Korean imports differs depending on the product.
The institute said optical devices would be most affected.