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July 2, 2019

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Japan, S. Korea row over wartime labor

Japan said yesterday it will tighten regulations on the export to South Korea of several chemicals used in chip and smartphone production amid a row with Seoul on wartime forced labor.

The move, effective from Thursday, comes after South Korean courts ordered Japanese firms to compensate people forced into wartime labor, an issue Tokyo says was resolved when the countries resumed diplomatic relations decades ago.

鈥淭he export control system is built based on international relations of trust,鈥 Japan鈥檚 Ministry of Economy, Trade and Industry said in announcing the move. 鈥淎fter reviews by relevant ministries, it must be said that the relations of trust between Japan and South Korea have been significantly harmed.鈥

The new restrictions affect chemicals including fluorinated polyimide and hydrogen fluoride, as well as transfer of technologies, removing them from a list that effectively allowed expedited export.

It means exporters will now have to apply for permission for each batch they wish to ship to South Korea, a process that takes around 90 days.

METI said it would also begin soliciting public comment on the removal of South Korea from a list of 鈥渨hite鈥 countries that face minimal restrictions on technology transfer with national security implications.

Japan and South Korea are both democracies, market economies and US allies, but their relationship has been strained for decades as a result of Tokyo鈥檚 brutal 1910-1945 colonial rule over the Korean Peninsula.

And tensions have grown after a series of rulings from South Korean courts ordering Japanese firms to compensate victims. Last month, Tokyo suggested the issue go to arbitration under the terms of a 1965 agreement signed when ties were normalized.

Seoul proposed local and Japanese firms set up a voluntary compensation fund, which Tokyo rejected.


 

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