Japan is reportedly considering a further expansion of export controls on South Korea amid escalating tensions between the two nations.

Japan's Kyodo News on Tuesday quoted government sources as saying that outbound shipments of electronic parts and related materials that have military applications may soon be restricted.

The report came just a day after Tokyo announced it would restrict South Korea-bound shipments of three key materials used in the domestic tech industry, effective Thursday.

Kyodo News said the consideration to expand export restrictions comes in response to what Tokyo views as Seoul's failure to properly address a months-long dispute over compensation for wartime forced labor.

The report said Japan believes South Korea has not done what it can to prevent the issue from hurting mutual trust between the two neighbors.

The Japanese government sources quoted in the report said that expanding the list of restricted export items will likely exacerbate bilateral relations and that some within the government remain cautious about taking further steps.