S. Korea cancels Japan intelligence deal amid trade dispute

SEOUL, South Korea (AP) — South Korea said today it will terminate an intelligence-sharing deal with Japan that focused on classified information about North Korea, a surprise announcement that is likely to set back U.S. efforts to bolster security cooperation with two of its most important allies in the Asian region.

South Korea attributed the decision to its bitter trade dispute with Japan, which has plunged the two countries' relations to their lowest point since they established diplomatic ties in 1965. Japanese Foreign Minister Taro Kono called the decision "extremely regrettable" and summoned the South Korean ambassador to protest the linking of trade and security issues.

Many experts had predicted that South Korea would be unlikely to spike the 3-year-old intelligence-sharing deal for the sake of its relations with the United States. South Korea has been seeking U.S. help in resolving the trade dispute, and Seoul and Washington have also been working together to restart stalled talks on stripping North Korea of its nuclear weapons.

South Korea's presidential office said it terminated the intelligence deal because Japan's recent decision to downgrade South Korea's trade status caused a "grave" change in security cooperation between the countries.

"Under this situation, the government has determined that maintaining the agreement, which was signed for the purpose of exchanging sensitive military intelligence on security, does not serve our national interests," Kim You-geun, the deputy director of South Korea's presidential national security office, said in a nationally televised statement.

He said South Korea would formally notify Japan of its decision before Saturday, the deadline for an extension of the pact for another year.

Japanese Foreign Minister Kono said in a statement that the decision "was an action that completely misjudged the current security environment in the region and is extremely regrettable."

He said South Korea's linking of trade and security was "absolutely unacceptable, and we firmly protest to the South Korean government."