Japan allows further exports of high-tech material to South Korea

The move comes ahead of government talks this week to resolve a bitter dispute stemming from their wartime past.

Japan-South Korea trade dispute
Protesters have staged a boycott of Japanese goods and are demanding compensation for wartime forced labour [File: Kim Hong-Ji/Reuters]

Japan has approved shipments of a high-tech material to South Korea for the second time since imposing export curbs last month, two sources told Reuters news agency, ahead of talks between government officials this week to resolve a bitter dispute stemming from their wartime past.

Relations between the two US allies worsened late last year when a South Korean court ordered Japanese companies to compensate some of their former labourers forced by the firms to work during World War II. 

In early July, Japan tightened controls on shipments to South Korea of three materials used in chips and displays, threatening to disrupt the global tech supply chain. Japan also announced a plan to revoke South Korea’s fast-track export status from later this month.

The material cleared by Japan for export to Samsung Electronics Co Ltd in South Korea is photoresists, which are crucial for the tech giant’s advanced contract chipmaking production, people who were familiar with the matter said on Tuesday.


A Samsung Electronics spokeswoman and a South Korean trade ministry spokeswoman declined to comment. A Japanese official in charge of the issue was not available for comment.

An official at South Korea’s presidential office confirmed the reports at a briefing but said that “uncertainties” will remain until Japan completely removes the tighter export controls it has instituted.

“Tokyo’s last export approval is positive for the local industry, but I don’t see Japan’s move as a conciliatory message to South Korea,” another South Korean government official told Reuters, requesting anonymity because of the sensitivity of the matter.

Earlier this month, Japan approved the export of photoresists to Samsung Electronics for the first time since it imposed the restrictions.

Samsung Electronics shares ended up 1.95 percent on Tuesday, leading the wider market’s gain of 1.5 percent.

Carbon fibre

Japan’s latest move comes ahead of a meeting between Japanese Foreign Minister Taro Kono and his South Korean counterpart, Kang Kyung-wha, in Beijing on Wednesday.

“This is a signal that Japan would not further escalate tensions. This is positive in that it creates an atmosphere for talks,” said Ahn Duk-geun, an international studies professor at Seoul National University.

He said he does not expect a breakthrough in the stalemate, citing wide differences over how to resolve the forced labour issue between the two neighbouring countries. “I hope there will be at least a handshake,” Ahn said.

“We will have to actively express our position, but it is a very difficult [situation],” Kang said at an airport in Seoul on Tuesday before leaving for Beijing.

Separately, South Korean President Moon Jae-in pledged to nurture the local carbon fibre industry as part of efforts to reduce dependence on Japanese imports for high-tech materials.

Moon attended an event by South Korean firm Hyosung Advanced Materials to announce a total of 1 trillion won ($828.55m) in investment by 2028 to expand production of carbon fibre, one of the items potentially subject to tighter export controls and used to make parts of hydrogen cars and aircraft. 

Currently, South Korean firms rely on Japan’s Toray Industries and others for carbon fibre supplies, industry officials say.  

Source: Reuters