The diplomatic feud between Japan and South Korea seems to have deepened as Japan has restricted the materials vital to make mobile and TV components as well as chemical exports and the transfer of manufacturing technologies to Korea.

A meeting between the two countries have seen little progress to bridge the divide. After the meeting, Japan’s Ministry of Economy, Trade and Industry disputed a Korean official’s statement that Seoul had asked Japan to withdraw the restrictions.

Their row is expected to threaten global supplies and prices of microchips, smartphone displays, and memory chips.

South Korean President Moon Jae-in has called the situation an "unprecedented emergency" and told business leaders to prepare for a drawn-out crisis.