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Thursday, July 04, 2019, 14:25
Japan export curbs take effect as S.Korean officials protest
By Reuters
Thursday, July 04, 2019, 14:25 By Reuters

Photo taken on Jan 11, 2011 shows containers stacked up at a terminal in the southeastern port city of Busan. (PARK JI-HWAN / AFP)

SEOUL/TOKYO — Japanese controls on exports of key materials used to make semiconductors and displays have taken effect, as South Korean officials vowed to fight back.
The Japanese government ordered the more stringent approval process for shipments of photo resists and other key chemicals as relations with its neighbor and US ally deteriorated due to issues related to forced labor during World War II.

South Korea said Japan's move is viewed as an "explicit breach of international law, including World Trade Organization regulations"

The president's office said South Korea's National Security Council met Thursday in Seoul, with members vowing to pursue diplomatic countermeasures.

READ MORE: Japan to tighten export rules for high-tech materials to S. Korea

It said the move is viewed as an "explicit breach of international law, including World Trade Organization regulations."

Japanese officials insist the decision to end preferential treatment for such exports to South Korea was required because of a lack of trust that poses a risk to national security.

South Korea's economic policy chief said he would not rule out direct countermeasures against Japan if Tokyo keeps restrictions on exports of high-tech materials to South Korean companies for a long time. "Implementing corresponding measures against Japan cannot be ruled out because it will take a long time for the World Trade Organization to produce a conclusion," Finance Minister Hong Nam-ki said on radio. 

The tighter export controls, which take effect on Thursday, could slow the export process by several months, hitting South Korean tech giants such as Samsung Electronics Co, SK Hynix Inc and LG Display

Amid a growing dispute over wartime forced labor between Tokyo and Seoul, Japan on Monday announced stricter restrictions on exports of three materials used in South Korean chips and smartphone displays. 

The tighter export controls could slow the export process by several months, hitting South Korean tech giants such as Samsung Electronics Co, SK Hynix Inc and LG Display. 

So far, South Korea has sought to settle the issue of the export curbs through the WTO. 

In October, South Korea's top court ruled that Japan's Nippon Steel & Sumitomo Metal Corp must compensate four South Koreans for their forced labor during World War II, a verdict Japan denounced as "unthinkable". 

ALSO READ: S. Korea calls in Japan envoy, to file WTO suit over export curbs

Kyodo News Agency reported on Tuesday that Japan was considering expanding its export controls to more items bound for South Korea. 

On Thursday, South Korea's finance minister said that if retaliation leads to further retaliation, there will be "unfortunate damage to both Korean and Japanese economies". 

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