Japan will tense up curbs on exports of high-tech components employed in smartphone chips and screens to South Korea. This comes in the middle of an increasing argument over South Koreans obliged to operate for Japanese companies at the time of World War Two, the industry ministry claimed this week, hinting condemnation from Seoul.
Tighter export managements, to become effective from this week, might slow the export procedure by various months, hitting tech behemoths of South Korea, such as SK Hynix, Samsung Electronics, and LG Display.
The step follows in the middle of Tokyo’s increasing frustration at what it dubs as a shortfall of action by Seoul over problems stemming from its leading court verdict previous October that instructed Nippon Steel to recompense earlier forced laborers.
Sung Yun-mo, industry minister for South Korea, claimed: “We will take essential actions comprising filing a complaint to the World Trade Organization (WTO).”
“Our government showed deep regret” over Japan tightening rules over its components shipments, Sung claimed.
Finance minister of South Korea also asked for a meeting to talk about plans for responding to Japan’s decision, executives at finance ministry claimed.
The foreign ministry at South Korean too called for Japan’s ambassador and summoned a withdrawal of the limitations, it claimed.
Japan refused South Korea’s plan previous month to make a joint fund for compensation to victims with contributions from companies of both countries.
On a related note, Japanese and British mobile phone firms earlier claimed that they are putting plans on hold to sell new handsets from Huawei, in the newest fallout from US tech limitations targeted at the Chinese firm.
Japan’s Y! Mobile and KDDI and Britain’s Vodafone and EE claimed that they are stopping the roll out of Huawei handsets, comprising some that can be employed on next gen mobile networks.