A South Korean credit rating agency says the trade spat between South Korea and Japan will likely have a limited impact on the rating of the local financial industry. 

In a report on Monday, Korea Investors Service, an affiliate of Moody’s Investors Service, said the South Korean financial industry is mostly domestic in distribution and management and that its investment in Japan is insignificant. 

The agency said Japanese financial firms operating in South Korea will also suffer only limited fallout from the trade conflicts between the two countries. 

However, it cautioned potential impacts from prolonged tension and the need for further monitoring of the situation.