South Korea's private research institute's projection shows. Japan's export restrictions on Seoul are expected to damage both countries' GDP.
Cho Gyeong-lyeob, senior research fellow from the Korea Economic Research Institute said on Wednesday,. that if Korean companies suffer a 30 percent drop in semiconductor-related supplies, South Korea's annual GDP would drop by around 2.2 percent.
Cho forecast that Japan's GDP would also edge down zero.zero-four percent.
And if Seoul were to retaliate by restricting exports on chips and chip components to Tokyo,. South Korea's GDP would slump at least by an estimated three percent.