Published: Mon, July 08, 2019
Finance | By Loren Pratt

Samsung heir heads to Japan amid export curbs

Samsung heir heads to Japan amid export curbs

In a meeting with senior aides, Moon called for Japan to withdraw what he described as a politically motivated measure, and for "sincere" bilateral discussion of the issue.

Speaking in a political debate hosted by Fuji TV on Sunday, Abe said while South Korea claims to adhere to sanctions against North Korea, "it is clear that [South Korea] does not abide by worldwide promises regarding [forced laborers] so it is only reasonable to think that it will not abide by trade restrictions [against North Korea]".

The export curbs highlight how Japan, the world's third-largest economy, continues to hold sway over a vital corner of the global supply chain.

"A vicious cycle created by measures and countermeasures wouldn't be ideal for both countries".

Hong said the South Korean government will try to minimize the potential damage to local companies by closely coordinating with local industry and the global community.

Japanese officials say if no improvement is seen on the South Korean side, they will stop giving the country preferential export treatment.

Japan has imposed tough economic sanctions on South Korea to protest a ruling from the latter's Supreme Court.

Japan has expressed hope the controls will prompt South Korea to place the materials under proper control.

A deepening row between South Korea and Japan has put Samsung's money makers under threat.

South Korea's government and top electronics firms scrambled to tackle the situation. Sources said Lee has left for Japan to discuss Tokyo's export restrictions.

Economy and Finance Minister Hong Nam-ki and Kim Sang-jo, presidential chief of staff for policy, were to meet Hyundai Motor Executive Vice Chairman Chung Euisun, SK Group Chairman Chey Tae-won and LG Group Chairman Koo Gwang-mo, Yonhap News Agency reported, citing a person familiar with the matter.

South Korea imported $144 million of the three materials from Japan in the first five months of this year, accounting for 94% of its fluorinated polyimides, 44% of its etching glass and 92% of its photoresist, Korean industry data showed. That makes it hard for South Korean chipmakers to find alternative sources of supply.

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