Tokyo decided on S. Korean export restriction in May: Yomiuri
- 5 years ago
Japan announced this week that it would impose export restrictions on key materials South Korea needs to produce semiconductors and computer displays.
However, it has emerged that Tokyo's decision was not an impulsive move.
A Japanese daily reports the government had already made up its mind in May... at the height of its diplomatic row with Seoul over the issue of wartime forced labor.
Kim Hyesung reports.
The Japanese government's reportedly decided to impose its export restrictions on chip supplies to Korea back in in May.
The export restrictions set to go into effect this Thursday affect fluorinated polyimides, photoresists and etching gas, which are used to produce semiconductors and displays.
It means Japanese exporters will have to apply for license for each batch they wish to export to South Korea, a process that could take 90 days.
Japan controls 70 to 90 percent of global production of these three materials, and export restrictions could affect Korean firms like Samsung Electronics and SK Hynix that are already struggling with falling chip exports.
South Korea's trade ministry criticized the move Monday as economic retaliation and said it will look into filing a lawsuit at the World Trade Organization.
"Chemical materials like resist are hard to store. The inventories Korean firms have are estimated to be around one to two months' supply. Japan's export restriction could affect their production of chips due to a delay in shipments or a total ban. There's a reliance on Japanese exports that can't be diversified immediately."
But the move is also likely to hurt Japanese firms, given the interconnected global value chain.
The Nihon Keizai Shimbun said Japan's export restrictions would also affect Japanese firms that have Korean companies as key customers and that a production snag for companies like Samsung Electronics could disrupt production of all electronics goods, including smartphones and TVs, that need semiconductors.
The Korea International Trade Association also released a report saying Japan exported 12 percent, 86 percent, 23 percent of resist, etching gas and fluorinated polyimides to South Korea between January and April, and that a protracted export restriction will hurt Japanese firms.
Kim Hyesung, Arirang News.
However, it has emerged that Tokyo's decision was not an impulsive move.
A Japanese daily reports the government had already made up its mind in May... at the height of its diplomatic row with Seoul over the issue of wartime forced labor.
Kim Hyesung reports.
The Japanese government's reportedly decided to impose its export restrictions on chip supplies to Korea back in in May.
The export restrictions set to go into effect this Thursday affect fluorinated polyimides, photoresists and etching gas, which are used to produce semiconductors and displays.
It means Japanese exporters will have to apply for license for each batch they wish to export to South Korea, a process that could take 90 days.
Japan controls 70 to 90 percent of global production of these three materials, and export restrictions could affect Korean firms like Samsung Electronics and SK Hynix that are already struggling with falling chip exports.
South Korea's trade ministry criticized the move Monday as economic retaliation and said it will look into filing a lawsuit at the World Trade Organization.
"Chemical materials like resist are hard to store. The inventories Korean firms have are estimated to be around one to two months' supply. Japan's export restriction could affect their production of chips due to a delay in shipments or a total ban. There's a reliance on Japanese exports that can't be diversified immediately."
But the move is also likely to hurt Japanese firms, given the interconnected global value chain.
The Nihon Keizai Shimbun said Japan's export restrictions would also affect Japanese firms that have Korean companies as key customers and that a production snag for companies like Samsung Electronics could disrupt production of all electronics goods, including smartphones and TVs, that need semiconductors.
The Korea International Trade Association also released a report saying Japan exported 12 percent, 86 percent, 23 percent of resist, etching gas and fluorinated polyimides to South Korea between January and April, and that a protracted export restriction will hurt Japanese firms.
Kim Hyesung, Arirang News.