Tokyo, July 2: Japanese industry minister Hiroshige Seko on Tuesday said the nation’s decision to reinforce controls over high-technology material exports to South Korea was not in violation of WTO (World Trade Organization) rules.
According to Reuters news reports, Seko stated the curbs “were a consequence of South Korea failing to present satisfactory measures” in order to resolve the matter of South Korean nationals forced to work for Tokyo’s firms during the World War Two.
Interacting with reporters after addressing a regular cabinet meeting, the minister said, “All trade-related actions by Japan are in line with the WTO rules.”
He added, “Because our (mutual) trust has severely damaged, we have judged it is difficult to ensure proper export controls are being taken.”
Tokyo is reinforcing curbs over trade-related exports of three materials – used in smartphone chips and displays – to South Korea in the midst of heightening dispute over the wartime forced labour.
The measure taken by Japan was denounced by South Korea as a violation of the WTO rules, stating Seoul would take the vital countermeasures, as well as, would lodge a stern challenge with the organization.
Stronger export curbs that would in effect from Thursday, will reduce the export process by many months, causing trouble for South Korea’s tech giants like Samsung Electronics (005930.KS), SK Hynix (000660.KS) and LG Display (034220.KS).