SOUTH KOREA said yesterday it will file a complaint to the World Trade Organization (WTO) over Japan’s “politically motivated” export restrictions, upping the ante in an intensifying dispute with the neighbor. Seoul and Tokyo have been embroiled in the trade and diplomatic spat since Tokyo tightened export controls in early July on three chemicals essential to making memory chips and high-spec displays. The materials affected by Japan’s export controls are fluorinated polyimides, photoresists and hydrogen fluoride, which are used by South Korean tech firms such as Samsung Electronics. Japan now requires exporters to seek permission each time they want to ship those materials, which takes up to 90 days. Previously, it only took a couple of weeks to ship, Yoo said. Only three shipments have been approved since Tokyo took action July 4. “Seoul’s complaint will not lead Japan to drop its tighter export curbs on the three items, but this will certainly put pressure on Japan to cautiously implement the measures,” said Ahn Duk-geun, a professor at Seoul National University. The restrictions follow a series of South Korean court rulings ordering Japanese firms to pay for forced labor during World War II. The ongoing dispute has also seen the two neighbors remove each other from their “white lists” of trusted trading partners and prompted South Korea not to renew a military intelligence- sharing pact. South Korea says Japan’s trade measures threaten its export-dependent economy, where many manufacturers rely on materials and parts imported from Japan. “Japan’s export curbs on three items are driven by political motivations linked to a Supreme Court ruling over the issue of forced labor,” said Trade Minister Yoo Myung-hee at a press conference. “Targeting South Korea is … in violation of WTO’s principles banning discriminatory practise.” With South Korea’s role as a main supplier for memory chips and displays, she said, the curbs have caused “significant uncertainty” in the global economy. As the first step of WTO dispute settlement, South Korea will request consultations with Japan and seek the end of the export curbs. If that does not resolve the issues, South Korea will request a WTO panel ruling on the cases, Yoo said. Tokyo says the move was made necessary by a “loss of trust” in relations with Seoul, but also accuses South Korea of improperly handling exports of sensitive materials from Japan. But Seoul maintains it is a retaliatory move in response to historical disputes. Relations between Japan and South Korea continue to be affected by Japan’s expansionism in the first half of the 20th century, including its colonization of the peninsula. (SD-Agencies) |