Japan to File Complaint with WTO against S. Korea

November 6, 2018

Tokyo--The Japanese government plans to file a complaint with the World Trade Organization against South Korea over public support for its shipbuilding industry, it was learned Tuesday.

Japan will ask South Korea to hold a bilateral meeting over the issue, a step toward filing a complaint, in line with procedures stipulated by the WTO, sources said.

If Seoul refuses that request, Tokyo is expected to ask the Geneva-based trade watchdog to set up a dispute settlement panel on the issue.

The South Korean government has been providing financial assistance to struggling shipbuilder Daewoo Shipping & Marine Engineering Co.

Japan has called on the Asian neighbor to review its move, saying such public support "distorts the market and delays the process to correct the issue of oversupply."

South Korea has rejected the demand.

Japanese transport minister Keiichi Ishii told a press conference on Tuesday, "We are making final arrangements, including for possible steps to settle the dispute under WTO rules." Jiji Press