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| President Moon Jae-in speaks during a weekly meeting with senior secretaries at Cheong Wa Dae, Monday. Yonhap |
By Do Je-hae
President Moon Jae-in called on government agencies Monday to cooperate in boosting the competitiveness of the local parts and materials industry to counter Japan's expanding trade offensive.
Moon underlined that the situation stemming from Tokyo's export restrictions "should be seen as an opportunity," and vowed full-scale support for industrial countermeasures.
"Innovative startups founded on new technologies can provide critical solutions even when the national economy is being threatened by a tech powerhouse that is violating free-trade principles," President Moon said at the start of a weekly meeting with senior secretaries at Cheong Wa Dae.
The President called for concerted efforts between government agencies and the corporate sector.
"Up until now, even if small- and medium-sized enterprises (SMEs) have had the technology for localization or have succeeded in product development, they have not been able to take a leading role in the supply chain and have had to give up," Moon said. "It is necessary to establish an emergency system of support and cooperation among the government, conglomerates and SMEs to improve the competitiveness of our parts and materials industries."
Moon has repeatedly stressed the importance of the localization of materials used in the nation's manufacturing of semiconductors and displays amid growing concerns over Japan's trade actions. The remarks are seen as reflecting his resolve that Seoul will not be intimidated by Tokyo's escalating pressure on trade and historical disputes, and will focus on minimizing the industrial impact.
Prime Minister Shinzo Abe publicly blamed Seoul for the bilateral tension following an election victory that enabled his ruling coalition to keep a majority in the Upper House of the Diet.
During a post-election TV interview, Abe claimed that the current bilateral tension was brought on by Korea because it violated a 1965 treaty regarding reparations for colonial era damage. The Japanese leader was quoted as saying that the leaders of the two countries could not have "productive consultations" unless Korea provides a "proper response" over the violation. "It is very regrettable that Korea is going against the pact, which constitutes the basis of bilateral relations in the post-war period," Abe said.
The remarks reiterate his position that 2018 Supreme Court rulings, which ordered Japanese firms to compensate South Koreans forced to work for them during wartime, violates the 1965 pact. Seoul sees the export curbs as a retaliatory measure against the ruling, but Tokyo has insisted the two are separate issues. The Japanese leader denied that the measures are retaliatory, and emphasized that the export controls were being carefully carried out in connection with safeguarding "national security."
In response to Abe's remarks, Cheong Wa Dae also showed no signs of backing down and hit back at Abe's request for a "proper response."
"We have always responded," presidential spokeswoman Ko Min-jung said during a briefing, Monday. "In response to Japan's claims that some materials were being smuggled to North Korea, we suggested an international review. And regarding the forced labor issue, we have explained our position on the Supreme Court rulings."
The presidential aide also urged Abe to exercise restraint for the sake of future cooperation and the peoples of the two countries.
The two will continue their trade battle at the World Trade Organization (WTO) in Geneva this week. Officials from Seoul aim to win international backing on its position that Tokyo's export curbs are discriminatory and violate free trade principles when a general council meeting of the WTO convenes, July 23 and 24. Tokyo is expected to send a director-general from its foreign ministry.
