Japan, SoKor To Normalize Trade Of Chip Materials

Japan will hold talks with Seoul on lifting its controls on exports to South Korea of materials for semiconductor manufacturing, the government said, as momentum builds toward mending bilateral ties, Mainichi Japan reported.

Photo Insert: In July 2019, the Japanese government tightened controls on exports to South Korea of three materials -- fluorinated polyimide, resists, and hydrogen fluoride -- used for the production of chips and display screens for smartphones.

A Japanese trade ministry official said it is the right time to resume talks on the export curbs imposed in 2019, while the South Korean government notified Japan the same day it will suspend a dispute process at the World Trade Organization (WTO) over the controls.

The steps were taken in the wake of South Korea's announcement Monday of its plan for settling a wartime labor compensation dispute with Japan.

In July 2019, the Japanese government tightened controls on exports to South Korea of three materials -- fluorinated polyimide, resists, and hydrogen fluoride -- used for the production of chips and display screens for smartphones.

Japan had also revoked South Korea's preferential status as a trade partner for the purchase of goods that can be diverted for military use, often referred to as a "white list country."

The removal of South Korea from the list came after the court rulings, which ordered Japanese firms to pay compensation to Korean plaintiffs for forced labor, were delivered.

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