Japan & South Korea
I think the traditional arts like karate and tkd are loosing out in sheer popularity against kickboxing, pankration and MMA in these countries, rather than religious reasons.
Kickboxing is as huge in Japan as football is in the states or football in Europe. For example, Bob Sapp may have allmost become a house hold name to many Japanese. Naturally, if kids see this they too will want to train in kickboxing.
Pride FC is based in Japan and is huge. The MMA craze hasn't stopped in Japan, there are also Korean circuits of course the most famous is the giant Korean fighter Chong.
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