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South Korea drops Japan as trusted trade partner

South Korea has officially removed Japan from its "white list" of trusted trade partners, the latest development in a monthslong diplomatic and trade row between the two countries, Yonhap News Agency and Reuters reported.

The South Korean Ministry of Trade, Industry and Energy announced that tighter trade regulations will take effect Sept. 18, including longer permit application processes and additional paperwork for South Korean exports to Japan related to weapons production.

"The purpose of the amended trade regulations are to improve South Korea's export control system, not retaliation against Japan," according to a trade ministry statement quoted by Reuters.

South Korea had earlier warned that it could revoke Japan's trusted trade partner status in response to Tokyo's restrictions on exports of three key industrial materials to its East Asian neighbor in July. Seoul last week filed a complaint with the World Trade Organization over those restrictions.

In late August, Japan removed South Korea from its own list of trade partners, citing concerns over South Korea's export control system.