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Business trends

Japan tech suppliers unnerved by export restriction on South Korea

Seoul plans to file complaint with WTO as dispute over wartime labor compensation heats up

Japan announced on July 1 that it will restrict exports of certain technology-related products to South Korea.

TOKYO -- Japanese companies say they were blindsided by the government's announcement that it will tighten controls on exports of semiconductor manufacturing materials to South Korea, a move seen as escalating a simmering dispute over wartime labor compensation.

Japan's ministry of economy, trade and industry said on Monday that domestic suppliers will have to apply for approval for each contract to sell to South Korean buyers. Suppliers say they were not informed of the decision ahead of time, and analysts are warning of potential disruption to supply chains.

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