Tokyo on Jan. 6 said it will recall its diplomats from South Korea and take other retaliatory measures against Seoul’s inaction concerning a “comfort women” statue in front of the Japanese consulate-general in Busan.

“The installment of the statue will have a detrimental effect on Japan-South Korea relations,” Chief Cabinet Secretary Yoshihide Suga said at a news conference in Tokyo.

Through diplomatic channels, Tokyo demanded the immediate removal of the statue, which was set up by a citizens group late last month. The South Korean government, however, has taken no action on the Japanese demands.

In response to Seoul’s apparent tacit approval of the statue, Japan will instruct Yasumasa Nagamine, the Japanese ambassador to South Korea, and Yasuhiro Morimoto, consul general at the consulate-general in Busan, to return temporarily to Japan.

Tokyo will also suspend talks on a new currency swap arrangement that will oblige the two countries to offer U.S. dollars or other currencies to each other during a financial crisis.

In addition, Japan will shelve bilateral talks on economic cooperation involving vice ministers or their equivalents and call off participation by Japanese diplomats in events related to Busan.

Suga said the government will “make a comprehensive assessment of the circumstances” before deciding on the time period for the measures.

Japan and South Korea reached a bilateral agreement on the comfort women issue in December 2015, calling it a “final and irreversible resolution” to the longstanding source of friction between the two countries.

Japan agreed to pay 1 billion yen ($8.62 million) to a foundation that Seoul helped to establish for assistance to the former comfort women who were forced to provide sex to Japanese troops before and during World War II.

Tokyo acknowledged the Japanese military’s involvement and responsibility in the agreement.

The Japanese government said the statue in Busan, which is similar to the one that remains in front of the Japanese Embassy in Seoul, goes against the spirit of the agreement that pushes future-oriented relations.

Seoul promised to “make efforts” in response to Japan’s request for the removal of the comfort women statue put up by a citizens group in front of the Japanese Embassy.

“We strongly hope that a promise agreed upon by the two countries is implemented,” Suga said.

The statue in Busan was originally removed by city officials on Dec. 28 soon after it was installed. But anti-Japan sentiment resurged in South Korea, fueled by Defense Minister Tomomi Inada’s Dec. 29 visit to Yasukuni Shrine, where Class-A war criminals are honored along with Japan’s war dead.

The statue was set up again on Dec. 30.

Suga said Seoul is obliged to protect the dignity and other matters of Japanese diplomatic missions on its territory based on the Vienna Convention on Diplomatic Relations.

“(The statue) undermines the dignity of the consulate-general facility, and it is extremely regrettable in light of the provisions of the convention,” he said.