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Japan-South Korea ‘trade war’: Moon warns Tokyo not to ‘force Seoul’s hand’ over export curbs on hi-tech materials
- The South Korean president will meet heads of 30 major conglomerates on Wednesday to discuss a response to Japan’s announcement
- He said Seoul preferred ‘a diplomatic settlement’ as tit-for-tat measures were undesirable for both countries
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South Korean President Moon Jae-in on Monday warned Japan’s new export curbs on hi-tech materials threatened global supply networks of semiconductor chips and smartphone displays, and insisted Seoul could yet enact countermeasures.
In his first comments since Tokyo last week announced export restrictions from July 4, Moon said: “The recent trade restrictions by Japan have sparked concerns over feared production disruptions at our companies, which would in turn threaten the global supply networks.
“Such moves putting restrictions on private companies’ mutually beneficial transactions for political purposes cause concern not only to South Korea but to the whole world.”
He said Seoul preferred “a diplomatic settlement” as tit-for-tat measures were undesirable for both countries.
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“But if real damage occurs to South Korean companies, it would force the government’s hand and the government would have to take necessary countermeasures. I don’t want to see this happen,” he said. “I urge Japan to withdraw the curbs and call for sincere talks between the two countries. I hope Japan return to the principle of free trade that it has always been emphasising.”
Over the weekend, South Korea’s government and top electronics firms scrambled to address the situation. Samsung Electronics vice-chairman Lee Jae-yong travelled to Japan on Sunday to discuss the tighter controls with local business leaders, Yonhap reported.
The hi-tech materials affected by the restrictions include fluorine polyamide needed to make flexible organic light-emitting diode displays, photoresist used to transfer a circuit pattern to a semiconductor substrate and etching gas essential for semiconductor fabrication process.
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