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| Minister of Trade, Industry and Energy Lee Chang-yang speaks during a press briefing at the Prince Park Tower Tokyo, Thursday. Yonhap |
By Lee Kyung-min
Korea decided to withdraw a lawsuit filed with the World Trade Organization (WTO) over Japan's curbs on three key materials needed to manufacture semiconductors and displays, the trade ministry said Thursday.
The announcement coincided with Japan's move to lift a four-year export restriction on fluorine polyimide, photoresist and hydrogen fluoride.
Japan produces about 90 percent of fluorine polyimide and photoresist and around 70 percent of hydrogen fluoride, which is why local semiconductor industries were left helpless following the export curbs.
Propelling the rapprochement between the two countries is an ongoing summit in Japan between President Yoon Suk Yeol and his Japanese counterpart Fumio Kishida.
"Today's development is not limited to resolving export control issues. It will become the cornerstone of the new future-oriented Korea-Japan ties," Minister of Trade, Industry and Energy Lee Chang-yang said after the summit in Japan, Thursday. "The two sides have led a series of productive director-general-level meetings over the past few days and shared a deep mutual understanding about the export curb structure, system efficacy and management."
Korea is expected to be included again on Japan's white list of favored trade partners eligible for simplified export procedures. The two governments said discussions will continue on the issue.
Troubled bilateral relations experienced a breakthrough after Korea and Japan agreed to establish a fund for the education and cultural exchanges of young people in both countries, including scholarships.
The establishment of the fund largely dispelled friction between the two sides over compensating Korean victims of forced labor at Japanese factories during World War II, as outlined by Korea's 2018 Supreme Court ruling.
The export curbs put in place in July 2019 came in retaliation against the court ruling that ordered Japanese firms to compensate Korean victims.
In August of that year, Japan removed Korea from its white list, which prompted Korea to lodge the WTO complaint.
The Korea Chamber of Commerce and Industry (KCCI) said Thursday's measure will advance the stability of the global supply chain for local manufacturers.
"Businesses welcome the latest development that will help a swift recovery from years of the COVID-19 pandemic, compounded further by Russia's prolonged invasion of Ukraine," KCCI said in a statement.
"Exchanges of business activities between two countries will resume, leading to the stable management of supply chains for semiconductors and batteries as well as increase investment activities between the two sides," it added.
