South Korea launches WTO complaint against Japan
- 1 week ago
South Korea has filed a complaint with the World Trade Organization over Japan regarding the trade restrictions imposed by Tokyo, something the latter has said was based over security and trust issues.
Analysts believe it is a retaliation following South Korean courts ordering Japanese companies to pay damages over forced labour during the second world war and the government in Seoul refused to enter into arbitration over the issue.
South Korean trade minister, Yoo Myung-hee, described the restrictions as a “discriminatory act directly targeting South Korea, and it was politically motivated”, raising fears of disruptions among South Korea’s electronics manufacturers, the country's most important export industry.
While Japanese officials have not stopped shipments of the materials, the threat of uncertainty to South Korean companies like Samsung Electronics and SK Hynix, the world’s two biggest memory chip producers, has spurred the government in Seoul to announce spending of as much as $6.5bn in an urgent bid to reduce its reliance on Japanese suppliers.
Source: Smart Trend Team