Japanese retailer Uniqlo to close 9 outlets in S. Korea due to pandemic, trade dispute

Japanese fashion retailer Uniqlo will close nine of its 174 stores in South Korea next month due to a sharp drop in sales due to the new coronavirus outbreak and the trade dispute between Japan and South Korea.

Uniqlo had 187 shops in South Korea at the end of August 2019.

As online shopping gained traction amid the pandemic and, Uniqlo's problem was compounded by the strained relations between the two neighboring countries.

However, a Uniqlo official said they don't have plans for further shutdown in South Korea and would open a new store in September.

Since July last year, Korean consumers have boycotted Japanese products in protest of Japan's export restrictions to South Korea of some key industrial materials.

The bilateral ties between the two countries have been strained since 2018 when a South Korean court ordered Japanese firms to compensate Koreans who were forced to work during Japan's colonization.

Japan reacted with export curbs against South Korea, which aggravated the situation.