Turning to the big trade story of the week,... one that could have serious repercussions for the export-driven South Korean economy.<br />The Japanese government will impose restrictions on the shipment of chip supplies to South Korea starting Thursday amid an ongoing row over a sensitive historical issue.<br />While Japanese media reports that Tokyo is even considering expanding the list of restricted products, Seoul has started a legal review ahead of the possible filing of a complaint to WTO.<br />Lee Min-sun reports.<br />The South Korean government is undertaking a legal review ahead of its plan to lodge a complaint with the World Trade Organization over Tokyo's recent announcement to impose restrictions on exports of chip supplies to South Korea.<br />A trade ministry official in Seoul said the review was started as Japan's export restriction is deemed to be in violation of WTO regulations.<br />Japan's decision came after the South Korean Supreme Court ordered Japanese companies to compensate Korean victims for wartime forced labor during the Japanese colonial period.<br />The restriction takes effect Thursday on three supplies: fluorinated polyimides, photoresists and etching gas.<br />These materials are needed to produce semiconductors and display screens for smartphones and TVs.<br />In addition, Tokyo-based Kyodo News Agency reported Tuesday that Japan is considering adding more products to the export restriction list.<br />They are likely be electric components that can be used for military purposes.<br />According to the report, Japanese authorities are in the process of removing South Korea from a "white list" of countries that can buy electronic components from Japanese companies relatively easily.<br />Japan's export restrictions could cause a trouble for Korean chipmakers like Samsung Electronics and SK Hynix as Japan controls 70 to 90 percent of the global production of the three materials.<br />With only a day left until the new export restriction takes effect, South Korean firms are taking actions to minimize damage to their operations.<br />The companies have dispatched representatives to Japanese suppliers to secure as many supplies as possible, while identifying exactly which materials will be affected.<br />Lee Min-sun, Arirang News.<br />
