Published:  01:50 AM, 12 September 2019

S Korea initiating WTO complaint over Japan trade curbs

S Korea initiating WTO complaint over Japan trade curbs South Korea's senior trade official Yoo Myung-hee speaks during a briefing at a government complex in downtown Seoul, South Korea, Wednesday. -AP

South Korea said Wednesday it will initiate a complaint to the World Trade Organization over Japan's tightened export controls on key materials South Korean companies use to make computer chips and displays.

South Korea, which has accused Tokyo of weaponizing trade to retaliate over political disputes, will formally request bilateral consultations with Japan on Wednesday as the first step in the WTO dispute settlement process, said Yoo Myung-hee, a senior official at South Korea's Ministry of Trade, Industry and Energy.

She said the country is also considering whether to pursue WTO action over Japan's move to delist South Korea as a preferential trade partner.

Japan in July imposed tighter export controls on three chemicals South Korean companies use to produce semiconductors and displays for smartphones and TVs, citing unspecified security concerns over South Korea's export controls on sensitive materials that could be used for military purposes. The measures, which weeks later were followed by Japan's move to exclude South Korea from its "white list" of countries with fast-track trade status, triggered a full-blown diplomatic row that saw relations sink to a low unseen in decades.

South Korea says Japan's trade measures threaten its export-dependent economy, where many manufacturers rely on materials and parts imported from Japan. It claims Tokyo is retaliating over South Korean court rulings that called for Japanese companies to offer reparations to aging South Korean plaintiffs over World War II forced labor.

--AP, Seoul

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