Fitch Ratings has warned Japan’s trade restrictions on South Korea will inflict substantial damage on Japanese firms in the long-run. 

The global credit rating agency said on Monday that Japan’s export curbs could take a toll on Samsung Electronics, LG Electronics, SK Hynix and other South Korean firms. 

However, it said Japanese suppliers of the high-tech materials that are subject to the Japanese measures as well as Japanese buyers of memory chips and displays made by South Korean firms will also likely suffer and expected the trade restrictions will not be kept in place for a long time. 

Fitch predicted that if tensions between Seoul and Tokyo heighten further, Japanese companies will have much to lose while South Korean companies search for alternative sources for the high-tech materials they need. 

The agency also contended that Japan's trade restrictions will pose a threat to not only South Korean firms but also other companies part of the global technological ecosystem.