Anchor: In an apparent retaliation against the South Korean Supreme Court's ruling over the forced labor issue, Japan said it will suspend preferential treatment it has given to South Korea regarding exports of materials used to make semiconductors and smartphones. Seoul says it will contest the move with the World Trade Organization.
Choi You Sun reports.

Report: Japan's Ministry of Economy, Trade and Industry announced on Monday that it will tighten regulations for exports of semiconductor and display materials to South Korea.

The move is part of Tokyo's apparent retaliation for the South Korean Supreme Court's ruling that ordered Japanese firms to compensate Korean victims of wartime forced labor.

Japan's Kyodo News cited the Japanese ministry saying trust between Seoul and Tokyo has been "markedly damaged."

Starting on Thursday, Japanese firms will need Tokyo's approval before exporting fluorinated polyimides, photoresists and etching gas to South Korea.

These high-tech components are used in a range of goods, including semiconductors and smartphones, produced by Samsung Electronics, SK Hynix and LG Display.

The goods in question will now take up to 90 days to be approved before they can depart for South Korea, forcing domestic firms to find alternative sources to maintain current stock levels.

Japan produces about 90 percent of fluorinated polyimides and photoresists, and 70 percent of etching gas in the world.

South Korea's First Vice Foreign Minister Cho Sei-young called in Japanese Ambassador Nagamine Yasumasa on Monday, where he is believed to have protested and expressed regret over Tokyo's new rules involving South Korean firms.

Minister for Trade, Industry and Energy Sung Yun-mo said during a meeting with officials that Seoul plans to take response measures, including taking the case to the World Trade Organization(WTO).

The ministry's Vice Minister Cheong Seung-il held talks with industry representatives to seek response measures, amid a decline in outbound shipments of semiconductors from the trade war between the U.S. and China.
Choi You Sun, KBS World Radio News.