South Korea reverses decision to suspend intelligence deal with Japan

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South Korea reverses decision to suspend intelligence deal with Japan
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South Korea on Friday said it would not suspend its intelligence-sharing deal wi...

SEOUL/NAGOYA, Japan - South Korea on Friday said it would not suspend its intelligence-sharing deal with Japan, in a dramatic, last-minute reversal that signaled a breakthrough after months of frigid relations over their painful wartime history.

The diplomatic thaw also has potential implications for trade. Japan has this year put export curbs on materials used to make semiconductors, threatening the global supply chain of chips that are a pillar of the South Korean economy. Japanese Prime Minister Shinzo Abe said South Korea had made a “strategic decision” in sticking with the intelligence-sharing pact and that bilateral relations were vital.

Motegi said he was due to meet his South Korean counterpart later on Friday. In an earlier sign of the discord, the South Korean minister had not formally confirmed her attendance at the G20. The United States broke off defense cost talks this week after demanding that South Korea raise its annual contribution for maintaining the U.S. contingent to $5 billion, more than five times what it pays now.

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