Japan Firms Back Export Curbs amid Stalemate with S. Korea

Economy Politics

Tokyo, July 3 (Jiji Press)--Japanese business leaders have shown a certain level of support for the government's planned strengthening of regulations of semiconductor material exports to South Korea as an attempt to break a diplomatic deadlock over the issue of wartime labor.

They believe that the South Korean side will in due course soften its stance over wartime labor, as the export controls are expected to deal a big blow to the country's economy.

But the measure could trigger tit-for-tat retaliation, similar to moves between the United States and China, as bilateral friction cannot be resolved solely on the basis of trade economics, as has been proved by the world's two largest economies.

"I want (South Korea) to take seriously the Japanese government's message that bilateral trust has been significantly shaken, and I want (the bilateral ties) to get back to a normal state soon," Kengo Sakurada, chairman of the Japan Association of Corporate Executives, or Keizai Doyukai, told a press conference on Tuesday.

Japanese businesses share the view with the government that the issue of wartime labor was resolved under a 1965 bilateral pact concluded when the two countries normalized their diplomatic relations.

[Copyright The Jiji Press, Ltd.]

Jiji Press