Nissan: Trade Woes Won’t Deter S. Korean Unit

Nissan Motor Co. says it will maintain its presence in South Korea in spite of a sharp drop in sales triggered by strained trade relations between Korea and Japan.

Nissan’s vehicle sales in Korea dropped 27% to 3,600 units in through the first eight months of 2019, including an 87% plunge to only 58 vehicles in August. Earlier this month the Financial Times speculated that the company might suspend sales entirely in the country.

The trade strife began in August, when Japan reduced shipments of chemical critical to Korea’s display screen and semiconductor industries. Shortly thereafter, Japan dropped Korea from its list of countries granted preferential trade status.

The moves prompted Korea to launch a nationwide campaign to boycott Japanese products and curb travel to Japan. The movement claims Japan imposed the trade restraints to retaliate for a Korean court ruling in 2018. The court ordered two Japanese company to compensate Koreans who toiled as forced laborers during Japan’s colonial rule over Korea in the early 1900s.