Moon hints at retaliation against Japan’s export controls

July 8, 2019

Seoul--South Korean President Moon Jae-in on Monday hinted that his government may take retaliatory measures against Japan's tightened controls on its exports of semiconductor materials to South Korea if any real damage arises.

On Thursday, the Japanese government took the measures in apparent retaliation for South Korea's failure to address the country's top court decisions ordering Japanese firms to pay compensation to South Korean plaintiffs over wartime labor.

The presidential office released remarks that Moon made at a meeting with key aides. Moon indicated his stance on the bilateral issue for the first time.

At the meeting, Moon said there would be no choice but to take necessary measures if South Korean companies start to suffer real damage from Tokyo's tightened controls. Moon called on Japan to withdraw its measures and requested bilateral talks on the issue.

Concerns are growing over production at companies in South Korea, he said, adding that the global supply chain has also been exposed to a threat.

Not only South Korea but also the whole world is worried about Tokyo's move to restrict mutually beneficial dealings between companies in the private sector for political purposes, Moon said.

Meanwhile, Moon stressed his wish to resolve the dispute through diplomatic efforts, saying that a vicious cycle of retaliatory measures is not desirable to either country.

He expressed hopes that Japan will return to the principles of free trade that it has supported.

Moon described the current situation as an unprecedented emergency. He called for support from the opposition camp, touching on the need to consider cooperation between the public and private sectors to build a system to deal with the emergency together.

The president also showed hopes of using the opportunity to improve the structure of the South Korean economy and reduce the country's trade deficit with Japan in the medium to long term while minimizing negative effects of the Japanese measures on South Korean companies. Jiji Press