The government withdrew a lawsuit filed with the World Trade Organization(WTO) over Japan's export restrictions on key materials needed to manufacture semiconductors and displays.
The trade, industry and energy ministry said Thursday that it withdrew the complaint over Japan's export curbs on fluorine polyimide, photoresist and hydrogen fluoride.
The move comes as Japan is set to lift the export restriction on the three materials this week.
Trade minister Lee Chang-yang on Wednesday said that South Korea and Japan will wrap up necessary procedures this week to lift the export restrictions and withdraw a complaint with the WTO on the issue.
The Seoul government said that it would seek a revision to reinstate Japan to South Korea's whitelist of trusted trading partners, which will reduce the period of the approval process for exporting strategic items from 15 days to five.