The Wall Street Journal(WSJ) is warning South Korea and Japan will be hit hard by the fallout from an emerging currency war between the United States and China, but for different reasons. 

In an editorial on Monday, the U.S.-based daily categorized South Korea as part of “yuan bloc” of countries whose currencies track the value of the Chinese currency due to their dependence on China for trade, pointing to the recent one-point-four percent fall of the South Korean won against the greenback. 

It said South Korea is also part of the dollar bloc with nonfinancial local firms owing huge dollar debts equivalent to 16 percent of the country’s gross domestic product. The newspaper said exchange-rate fluctuations could stress those debtors, adding Seoul will grapple with its own fears about capital flight.

Japan, on the other hand, will suffer as the currency spat between the two world’s largest economies is set to make the yen an even safer haven for investors. 

WSJ said a stronger yen reduces the yen-denominated returns from those investments and will dent corporate and household earnings and work against the Japanese economy.