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| President Moon Jae-in speaks during a meeting with senior presidential secretaries at Cheong Wa Dae, Monday. Yonhap |
By Do Je-hae
President Moon Jae-in is taking a critical tone regarding Japan's export restrictions on three high-tech materials used by Korean firms in their manufacture of semiconductors and display panels announced last week.
During a meeting with senior secretaries at Cheong Wa Dae, Monday, Moon underlined that the export curbs were prompted by political reasons. "Japan's move to contain mutually beneficial trade between private businesses for political motives has caused concern not just for Korea, but the entire world." Moon called for an "immediate withdrawal" of the restrictive measures, urging Japan to adhere to the principles of free trade.
This was the first time for Moon to publicly comment on the escalating trade row with Japan since Tokyo's announcement on tightening export regulations for materials used in Korea's core export items by some of the nation's biggest brands ― Samsung, LG and SK. So far, Moon has taken a subdued stance on the issue, so as not to excessively provoke Tokyo for fear that any hostile wording may aggravate the situation.
Moon also called for a diplomatic approach to deal with the escalating trade row. "A vicious tit-for-tat is not at all desirable for either country," Moon said. "The government will calmly make efforts for a diplomatic solution." He urged the two countries to enter into negotiations.
In addition, the President stressed that the urgent situation called for close communication between government and business. "Cheong Wa Dae and all ministries concerned must cope with the difficulties faced by the Korean firms, discuss solutions together with them and provide them with all the necessary support."
Moon said he will use the export curbs as an occasion to fix the structural problems in the nation's economy. He highlighted his administration's focus on advancing the manufacturing sector with various incentives, and reducing reliance on foreign material resources. "The core of our strategy for a renaissance of the manufacturing sector is to raise the competitiveness of local parts, materials and equipment," Moon said. "If the backbone of our industry becomes stronger, we can overcome any hurdles."
The President's remarks against Japan came amid widening concerns that Tokyo will not let up on its economic retaliation anytime soon. Japanese Prime Minister Shinzo Abe has stood by the measures despite repeated calls from the Korean government for their withdrawal. Some Japanese media reported recently that Tokyo may expand the items to be restricted. Also Abe appeared on a TV debate Sunday and made remarks that appeared to link the recent export restrictions to sanctions against North Korea.
To discuss countermeasures to Japan's export curbs, Moon will likely hold a meeting with the nation's business leaders at Cheong Wa Dae sometime this week. Presidential aides, including presidential chief of policy Kim Sang-jo, and Finance Minister Hong Nam-ki also met with representatives from the business sector Sunday regarding the restrictions. Details of the meeting have yet to be released.
The rising bilateral tension from the trade dispute has also underlined the need for the President and political parties to discuss countermeasures together. A presidential aide said Monday that Moon was ready to meet with the parties if they come to an agreement on the time and place.
The government has also started to seek mediation from the U.S., and Trade Minister Yoo Myung-hee is expected to visit there shortly to pursue international cooperation in resolving the issue.
