Japan argued that the South Korean government has “directed public funds of 11.9 trillion won to invest in Daewoo Shipbuilding & Marine Engineering Co., allowing the company to build ships at very low rates that resulted in the distortion of market prices.” (image: Korea Bizwire)
SEOUL, Nov. 7 (Korea Bizwire) — The Japanese government has moved forward with dispute settlement procedures at the World Trade Organization (WTO) regarding allegations that South Korea’s shipbuilding industry is being supported by government funds.
Kim Deuk-hwan, the deputy spokesperson for the South Korean Ministry of Foreign Affairs, said at a regular briefing on Tuesday that “Japan has requested bilateral consultations on this matter.”
Japan’s request for bilateral consultations is an essential step prior to filing litigation with the WTO, a move that clearly shows that Japan intends to move forward with the grievance.
Japanese media including Kyodo News and NHK reported on Tuesday that the Japanese government is filing suit against South Korea upon allegations that South Korea has violated WTO regulations by using government funds to support the country’s shipbuilding industry.
Japan argued that the South Korean government has “directed public funds of 11.9 trillion won to invest in Daewoo Shipbuilding & Marine Engineering Co., allowing the company to build ships at very low rates that resulted in the distortion of market prices.”
Japan’s move to request the intervention of the WTO comes after the South Korean Supreme Court ruled that a Japanese corporation should compensate South Korean victims of forced labor under Japanese colonial rule.
H. M. Kang (hmkang@koreabizwire.com)
