Japan is intensely racist. My spouse lived there for a year. When she went about her business outside, small children who saw her would literally burst into tears screaming to their parents about gaijin.
That never happened to me, and I have been living there for 8 years now.
But I would agree that Japan is generally racist, as in most Japanese believe there are fundamental differences between people due to what they call race. I am not sure whether most Japanese would consider Korean a different race, but I would not be surprised either.