I think Gen 8 is wil be set in Spain. Regions are based on countries Japanese tourists like to frequently visit. SK would be a bad idea because of NK. You see so much about refugees and or terrorism in Germany, Italy, and UK. I just hear less about the refugees when it comes to Spain than those three countries. Also, thank god Japan hates refugees and Nintendo doesn't care about politics.

For example, if Gen 8 took place in Germany, you guys would be going nuts about rapefugees. Or if it was SK, there would be shittons of NK and Kim Jong Un jokes.