Korea is in a dilemma over whether to cancel a military intelligence-sharing pact with Japan that is up for renewal this year.

Seoul is minded to terminate the General Security of Military Information Agreement signed in 2016 in response to targeted export curbs from Tokyo. Japan on Friday decided to remove Korea from a "whitelist" of preferential trade partners.

But the consequences could be severe since Japan's intelligence-gathering abilities are superior to Korea's and the pact forms part of U.S.-led security cooperation in the region. It is up for renewal by Aug. 24.

Abrogating the pact would not deal much of a blow to Tokyo but put pressure on Washington to intervene in the feud between the neighbors.

