Japan moves to curb exports to South Korean tech firms, in escalation of forced labour row
- The exports include chemicals used in chips and smartphone production and regulations will be tightened from July 4
- South Korea has condemned the plan as ‘economic retaliation’, saying it will take countermeasures and file a complaint with the World Trade Organisation
The move, which takes effect from July 4, comes after South Korean courts ordered Japanese firms to compensate people forced into wartime labour, an issue Tokyo says was resolved when the countries resumed diplomatic relations decades ago.
“The export control system is built based on international relations of trust,” Japan’s Ministry of Economy, Trade and Industry (METI) said in announcing the move. “After reviews by relevant ministries, it must be said that the relations of trust between Japan and South Korea have been significantly harmed.”
The new restrictions apply to three chemicals as well as transfer of manufacturing technologies, removing them from a list that effectively allowed expedited export.
It means that exporters will now have to apply for permission for each batch they wish to export to South Korea, a process that takes around 90 days each time, local media reported.
South Korea’s Industry Minister Sung Yun-mo criticised the move on Monday as “economic retaliation” and threatened to take “necessary countermeasures under international and domestic laws, including filing complaints with the World Trade Organisation”.