Japan to sue South Korea at WTO if shipbuilder subsidy talks fail

Move follows Korean court order on Nippon Steel, as relations sour

20181106 Daewoo Shipbuilding

Daewoo Shipbuilding & Marine Engineering’s shipyard is seen in Geoje, South Korea.

Nikkei staff writers

TOKYO -- Japan plans to ask South Korea to launch bilateral talks over a possible violation of international trade rules, a step toward filing a complaint with the World Trade Organization, government sources said Tuesday.

Japan has been asking Seoul to reconsider its subsidies to struggling South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering, saying the public support is excessive and harming the healthy formation of market prices.

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