Japan to remove South Korea from preferential treatment list, with decision due Aug. 2

Japan will officially decide on Aug. 2 to remove South Korea from its list of countries that enjoy preferential treatment and buy products that can be diverted for military use, sources familiar with the plan said Friday.

The Cabinet of Prime Minister Shinzo Abe plans to endorse South Korea’s removal, which will likely take effect in late August, according to the sources.

The move comes amid rising trade tensions between Japan and South Korea since Tokyo tightened its controls in early July on exports of some materials used in making chips and displays for security reasons.