South Korea says it is canceling an intelligence-sharing pact with Japan amid a bitter trade dispute with its Asian neighbor.

South Korea's presidential office made the announcement today, saying tightened export controls imposed by Japan have caused a "grave" change in security cooperation between the countries.

The decision is expected to further aggravate tensions between South Korea and Japan, two of America's most important allies in the region.

The move is a setback to US efforts to bolster trilateral security cooperation with Seoul and Tokyo.

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- AP