Japan-South Korea spat spills over to shipbuilding subsidies

New flash point emerges as Tokyo prepares WTO suit

20181106N Daewoo

Daewoo Shipbuilding & Marine Engineering's shipyard on South Korea's Koeji Island. As tensions rise, Japan is taking aim at the South Korean government's assistance to the country's shipbuilders.

TOMOHIRO EBUCHI, Nikkei staff writer

TOKYO -- The Japanese government is preparing to take South Korea to the World Trade Organization over what it considers unfair shipbuilding subsidies, putting yet more strain on a relationship already troubled by Seoul's recent Supreme Court ruling regarding wartime laborers.

As a preliminary step, Tokyo announced on Nov. 6 that it has asked Seoul to launch bilateral talks over its subsidies to a struggling shipbuilder. With the talks expected to fail, the dispute is almost certain to reach the WTO. 

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