South Korea reopens tech trade case against Japan

South Korea yesterday said it will recommence proceedings against Japan at the World Trade Organization over its tightened controls on technology exports to its companies, blaming Tokyo for an alleged lack of commitment in resolving mutual grievances.

South Korea had halted its WTO action in November when it decided to keep a military intelligence-sharing agreement with Japan it previously threatened to end over conflicts stemming from wartime history and trade, after months of pressure by the Trump administration.

Japan in return agreed to resume talks on settling a bilateral trade dispute, which was triggered by its move in July into strengthen export controls on key chemicals South Korean companies used to make computer chips and displays.

But Na Seung-sik, an official from South Korea’s trade ministry, said there has been no progress since then because of what he described as Japan’s lack of willingness to settle the dispute.

He said South Korea will request a WTO panel ruling over the issue and that the process will likely take more than a year.

When imposing tighter controls over the three chemicals, Japan had cited unspecified security concerns over South Korea’s export controls on sensitive materials that could be used for military purposes. But Na said there has been no known security problem related to the chemicals or products that involved them in the past 11 months.

“Our government in the past six months sincerely engaged in dialogue and provided thorough and sufficient explanations so that the Japanese side could understand South Korea’s export controls are functioning normally and effectively,” Na said in a briefing.

“Our thinking is that the process of bilateral consultations is over, and the next step would be for us to request the WTO to set up a dispute settlement panel.”

Japan’s Foreign Minister Toshimitsu Motegi expressed regret over South Korea’s move and said there was no change to Tokyo’s position that Seoul should improve its export controls.

“It was regrettable that the South Korean side unilaterally made the announcement even though we have maintained dialogues,” he told reporters.