Photo/IllutrationA woman walks past an advertisement featuring Japanese and South Korean flags at a shop in Shin Okubo area in Tokyo on Aug. 2. (AP Photo)

The traditionally prickly relationship between Japan and South Korea is degenerating into its worst and most dangerous state since formal diplomatic ties were established more than a half century ago.

The leaders of the two nations need to tackle the formidable challenge of overcoming this crisis in bilateral relations, which is harming the business interests of both sides as well as grass-roots exchanges between the Japanese and South Korean people. Prime Minister Shinzo Abe and South Korean President Moon Jae-in need to swiftly take effective fence-mending steps instead of meting out retaliatory measures.

The Abe Cabinet on Aug. 2 approved an order to remove South Korea from the “white list” of nations that receive minimum trade restrictions. The step, which means downgrading the status of South Korea as a trade partner, is based on security concerns, the administration says.

At a news conference after the Cabinet decision, Hiroshige Seko, the trade minister, denied the measure represented retaliation of any kind.

“There was never any intention of affecting the Japan-South Korea relationship, and it is not intended as a retaliatory measure in any sense,” he said.

When the government first announced new restrictions on exports to South Korea in July, however, top administration officials including Seko referred to the issue of South Korean Supreme Court rulings that have ordered Japanese companies to pay compensation to Korean wartime laborers, known as “choyoko” (drafted workers).

The series of trade measures taken by the Abe administration are viewed by the international community as simple retaliation against South Korea.

No matter how Tokyo may cast the step, it will inevitably deliver a serious blow to bilateral ties.

The move has already started creating far-reaching repercussions on human interactions between the two countries, with many grass-roots and local government-level exchange events being canceled or postponed.

Combined with the July move to tighten export controls for three advanced materials used in South Korea to manufacture semiconductors, the latest measure could badly hurt the South Korean economy and also have significant consequences for Japanese industries.

Japan's Aug. 2 decision will be implemented in late August. Tokyo needs to rethink and retract its series of measures to restrict exports to South Korea.

The Moon administration has responded to Japan’s action by indicating the possibility of scrapping a key security arrangement with Japan. It would be unwise, however, to terminate security cooperation that is beneficial for both sides at a time when North Korea continues with its military provocations.

Moon should face up to the grim reality of the poisoned bilateral relationship and his own responsibility. On Aug. 2, Moon put the entire blame for the situation on Japan. But he is foisting his own responsibility for the souring of the bilateral ties on Japan.

To defuse the diplomatic crisis, South Korea, first of all, needs to tackle the “choyoko” issue. The Japanese government repeatedly demanded that the Moon administration clarify its position on the issue even before the country’s Supreme Court handed down the rulings, but Seoul took no action.

Even though he is obliged to respect the decision by the country's top court, Moon should at least explain to the public that his government cannot disregard previous administrations’ decisions as it grapples with this touchy issue.

The Japanese government, for its part, should swiftly take actions to engage in constructive diplomatic dialogue with Seoul, including behind-the-scenes moves.

It would be constructive if Japan takes steps to help create a political environment favorable to the Moon administration’s efforts to have calm-headed communications with the public over the current situation.

The United States has indicated a willingness to mediate the conflict between Japan and South Korea but has failed to come up with any specific proposal.

It is doubtful, in the first place, whether the Trump administration, which shows little sign of wanting to keep its alliances in good shape, is really serious about such mediation.

Japan and South Korea have no choice but to try to rebuild their relations and untangle the current mess on their own without banking on help from Washington.

This is a challenge that will sorely test the political and diplomatic prowess of both governments.

--The Asahi Shimbun, Aug. 3