The relationship has deteriorated! Japan will restrict the export of high-tech materials to South Korea, and South Korea says it retaliates.

　　　　　　 CCTV News:According to Yonhap News Agency, the Minister of Industry, Trade and Resources of the Republic of Korea, Chang Yunmo No.1, said in Seoul that the South Korean government would file a lawsuit against Japan for restricting the export of semiconductor raw materials to the Republic of Korea, and would take necessary measures to counter it in accordance with the principles of international law and domestic law.

　　　　　　 Chang Yunmo, Minister of Industry, Trade and Resources of Korea, characterized Japan’s export control to Korea as economic retaliation. Cheng Yunmo also said that in order to guard against Japan’s unilateral measures, the South Korean government has been working with relevant industries to diversify the import market and key technologies, and expand domestic production facilities. In the future, we will maintain close communication with the industry, strive to minimize the losses of Korean enterprises, and take this opportunity to enhance the competitiveness of Korean parts, materials and equipment industries.

　　　　　　 It is understood that the high-tech materials that Japan intends to restrict Japanese enterprises from exporting to South Korea include fluorine-containing polyimides, resists and high-purity hydrogen fluoride. These materials are important raw materials in smart phones, chips and other industries. From July 4th, Japan will require enterprises to apply for permission from the government before exporting the above materials to the ROK, and the approval process will take about 90 days.

　　　　　　 It is reported that the fluorine-containing polyimides and resists manufactured by Japanese companies account for about 90% of the global output and hydrogen fluoride accounts for about 70%, respectively. Once export restrictions are imposed on South Korea, it will impact major Korean electronic products companies such as Samsung Electronics and LG Electronics.

　　　　　　 According to the Kyodo News Agency quoted the Korea Trade Association, in 2012, South Korea’s semiconductor exports were US$ 50.4 billion, accounting for only about 9% of the total exports, while in 2018 it increased to US$ 126.7 billion, accounting for about 21%. In this regard, some experts said that South Korea’s economic growth is "over-dependent" on the export of Korean semiconductor industry, and Japan’s export restrictions will hit the Korean semiconductor industry and have a huge impact.

　　　　　　 On the 1st, Japan’s Ministry of Economy, Trade and Industry announced that the Japanese government would restrict the export of important high-tech materials to South Korea from July 4th, because it was dissatisfied with South Korea’s demand for Japanese enterprises to compensate South Korean workers forced by Japan during the Second World War. Since last year, Korean courts have successively ruled that three Japanese companies should make compensation for the forced recruitment of Korean workers during World War II. The Japanese government insists that such claims have been "settled" according to the Japan-Korea Claims Agreement signed by the two countries in 1965. The above-mentioned compensation dispute has become one of the main factors for the recent deterioration of relations between the two countries.