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Thursday, July 11, 2019, 18:14
ROK seeks US help in bitter trade spat with Japan
By Associated Press
Thursday, July 11, 2019, 18:14 By Associated Press

Kang Kyung-wha, foreign minister of the Republic of Korea, speaks at the National Assembly in Seoul, Oct 10, 2018. The ROK is seeking US help in a bitter diplomatic row with fellow American ally Japan over its moves to tighten controls on high-tech exports. (HWANG KWANG-MO / YONHAP VIA AP)

SEOUL, Republic of Korea — The Republic of Korea (ROK) is seeking US help in a bitter diplomatic row with fellow American ally Japan over its moves to tighten controls on high-tech exports.

(Minister Kang) expressed concern that Japan's trade restrictions would not only inflict damage to our companies, but could also disrupt global supply chains and cause negative effects not only to US companies but also to the global trade order

Foreign Ministry, Republic of Korea

The government said Thursday that Foreign Minister Kang Kyung-wha discussed the issue with US Secretary of State Mike Pompeo by phone and conveyed Seoul's view that Japan's "undesirable" trade curbs could disrupt global supply chains and hurt trilateral cooperation among the countries.

The ministry said Pompeo expressed an "understanding" of ROK's position and agreed to help facilitate communication through diplomatic channels among Washington, Seoul and Tokyo.

Tokyo last week tightened the approval process for Japanese shipments of photoresists and other sensitive materials to ROK companies, which need the chemicals to produce semiconductors and display screens used in TVs and smartphones.

The diplomatic dispute over that has further soured relations long troubled over Japan's brutal colonial rule of ROK before the end of World War II.

"(Minister Kang) expressed concern that Japan's trade restrictions would not only inflict damage to our companies, but could also disrupt global supply chains and cause negative effects not only to US companies but also to the global trade order," the ministry said in a press release.

"This would not be ideal for the bilateral friendship and cooperation between South Korea and Japan and also the three-way cooperation between South Korea, the United States and Japan," it said.

The ROK is also referred to as South Korea.

Kim Hyun-chong, deputy chief of ROK's presidential National Security Office, arrived in Washington on Wednesday and told reporters he would discuss the trade spat with Japan with US officials. His trip came a day after ROK President Moon Jae-in urged Japan to refrain from pushing the situation to a "dead-end street" and respond to Seoul's efforts to resolve the matter diplomatically.

ALSO READ: Japan, ROK step up trade dispute

"I came because there are a lot of bilateral issues between South Korea and the United States to be discussed in meetings with the White House and also the Senate and House," Kim told ROK reporters at Dulles International Airport. When asked whether ROK would ask the US to mediate in the trade dispute with Japan, Kim said, "That issue will be discussed too."

The deteriorating relationship between ROK and Japan could possibly complicate US efforts to strengthen three-way cooperation on the Democratic People's Republic of Korea (DPRK) nuclear program and in countering China's growing influence in the region. But it's unclear whether the Trump administration would be willing to intervene.

ROK's Ministry of Trade, Industry and Energy said its minister for trade, Yoo Myung-hee, will head for the United States soon to discuss the Japanese trade curbs. ROK trade officials plan to visit Tokyo to meet with their Japanese counterparts on Friday. So far, Japan has so far shown no willingness to negotiate. It will likely use the meeting to explain and reaffirm its stance, the ministry said.

According to the ministry's figures, Japanese direct investment in ROK dropped 51% in January-June from a year earlier, to US$330 million.

READ MORE: Moon warns biz to prepare for a prolonged fight with Japan

Park Tae-seong, a senior ministry official, said the decline was unrelated to Tokyo's trade curbs. He sidestepped questions of whether antagonisms were hurting investment.

The ROK relies heavily on exports and is the world's biggest supplier of computer chips and displays. It sees the Japanese trade curbs as retaliation for court rulings ordering Japanese firms to compensate aging ROK plaintiffs for forced labor during World War II.

Japanese officials have suggested ROK is not trustworthy, hinting at security risks and illegal transfers of sensitive materials to DPRK without citing specific cases.

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