By Jun Ji-hye
Officials across industries here that depend on imports from Japan are wary of a growing possibility that Japan could expand the list of items subject to export restrictions, they said Wednesday.
While Tokyo's apparent economic retaliation against Seoul, which comes amid a worsening diplomatic row, started with three high-tech materials used in the semiconductor and display sectors, the chemical and steel industries are also bracing for the possibility that their businesses may be impacted in the future.
Japanese media outlets reported that Tokyo is expected to expand the targets of its export control to other raw materials and electronic components unless conflict between the two countries is resolved. The countries are at odds over the compensation claims of Korean victims forced to work in Japanese factories during World War II.
Kyodo News said the Japanese government is pushing for stronger measures in an apparent bid to pressure Korea to move fast to resolve the issue of forced laborers.
“As we import some raw materials from Japan to produce chemical products, we are keeping an eye on the development of the situation,” a chemical company official said, asking not to be named.
On Monday, Japan's Ministry of Economy, Trade and Industry announced a decision to strengthen restrictions on the exports of three items ― fluorinated polyimide, photoresist and hydrogen fluoride (etching gas) ― to Korea.
Fluorinated polyimide is used to make the flexible organic light-emitting diode displays for TVs and smartphones, while photoresists and etching gas are necessary in the semiconductor fabrication process.
An official from a semiconductor company noted that a silicon wafer could also be the next item subject to the restrictions.
“Japanese companies take about a 50 percent share in the global silicon wafer market,” the official said. “If the item is added to the list of the restrictions, it would disrupt the smooth operation of the semiconductor fabrication lines.”
Silicon wafer / GettyImagesBank
Japan has been protesting against last year's ruling of Korea's Supreme Court that Japanese companies, including Mitsubishi, must pay compensation to individual Korean victims.
Japanese state broadcaster NHK reported that Japan wants Korea to accept its request to set up a third-party arbitration committee to deal with compensation claims for Koreans.
Japan made the request on June 19, and Korea is required to respond to the request within 30 days under the 1965 treaty that set up relations between the two.
Meanwhile, Kim Sang-jo, senior presidential secretary for policy, said during a meeting at the National Assembly, Wednesday, that he has met with executives at major companies including Samsung Electronics to discuss countermeasures.
“I delivered an opinion that the government and business circles need to communicate and cooperate to defend national interests,” he said.