According to Kyodo News, the World Trade Organization (WTO) Dispute Settlement Body (DSB) agreed at a meeting on the 29th that South Korea used Japan’s improper practice of strengthening the export control of semiconductor materials to South Korea as a reason for the requirement to set up a "first instance." Dispute Resolution Expert Group.
Although the deliberation was carried out in a "second-instance system," the appellate body, which is equivalent to a "final trial", was unable to fill the vacancies due to the opposition of the United States demanding reform of the WTO, and is currently paralyzed. As long as Japan and South Korea do not find a compromise through dialogue, the dispute will be prolonged.
The report pointed out that the Japanese delegation was extremely sorry for the media’s condemnation of the South Korean side for “taking the approach that might destroy the unresolved issues through dialogue.” The Japanese side believes that it is difficult to resume dialogue under the current circumstances. In view of the WTO’s agreement to set up an expert group, the Korean Ministry of Trade, Industry and Energy stated that it would “require Japan to quickly abolish” export controls.
Japan argues that the three semiconductor materials that strengthened export control in July last year may be converted to military use, and the WTO agreement also allows export management. However, South Korea emphasized that this action was a "political motive, disguised trade restriction measure" related to the issue of formerly recruited labor.
South Korea filed a complaint with the WTO in September last year, but in view of the agreement between Japan and South Korea in November to start negotiations on export control, the relevant procedures were temporarily suspended. South Korea requested the end of May this year to cancel the control, but Japan did not agree, so it restarted the procedure in June.
