The government, presidential office and ruling Democratic Party(DP) will spend around one trillion won on an annual basis to foster Korea's parts and materials industries following Japanese export restrictions announced this week.

DP chief policymaker, Cho Jeong-sik, said that the decision was reached on Wednesday during a closed-door meeting at the National Assembly. 

Cho said the government, top office and his party agreed to actively foster parts and materials industries through preemptive investment, adding that a feasibility study is under way to help facilitate the one trillion won annual investment.

Cho also said that the government, top office and the ruling camp will announce sometime this month ways to boost the competitiveness of the nation’s parts, materials and equipment.

Wednesday’s meeting comes after Japan announced earlier this week that it will suspend preferential treatment it has given to South Korea regarding exports of specialized materials used in Korea's tech industry, forcing Japanese firms to obtain government approval to export the materials to Korea. 

The trade restrictions appear to be in retaliation to recent decisions by the South Korean Supreme Court ordering some Japanese companies to compensate Korean victims of forced labor during the Second World War.