Korea and Japan are exporting more of the same products, leading to a fierce competition between the neighboring countries. A report by the Korea International Trade Association on Monday showed that their overlapping exports have gradually increased recently and reached 52 percent last year.

The report compared the top 50 export products of both countries and found they had 26 in common, including petrochemical products, automobiles and ship parts -- all of which make up the bulk of Korea's main export items.

This has stoked concern that Korea will lose its edge in the export market, especially as the won has strengthened against the yen by over 20 percent in the past six months alone.