Bilateral trade between South Korea and Japan stood at $18.4 billion (19.9 trillion won) in the first quarter of this year, dropping by 13.9 percent compared to $21.4 billion during the same period in 2014, data showed Tuesday.

According to the Korea International Trade Association, the value of exports from Korea to Japan dropped on-year by 22 percent to reach $6.39 billion in the first quarter of 2015, while imports declined by 8.8 percent to stand at $12.54 billion.

Market analysts said that shrinking trade between the two countries can be attributed to the falling yen, which has lowered the price competitiveness of Korean products in Japan.

Meanwhile, Korea’s increased dependence on China for acquiring goods traditionally bought from Japan ― such as assembly parts and manufactured materials ― reportedly led to a decline in imports.

Since annual bilateral trade peaked in 2011 at $108 billion, figures have been steadily declining to reach $103.1 billion in 2012 and $94.6 billion in 2013.

In 2014, the total trade volume between the two countries stood at $85.9 billion, declining by 9.2 percent on-year.

“The most important factor affecting bilateral trade between Korea and Japan is the currency exchange rate,” a KITA official said, adding that “trade volumes are declining due to the further weakening of the yen this year.”

(jys@heraldcorp.com)