Japan considers strengthening export restriction as Korean firms try to secure supplies

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.And Japanese media is now reporting that Tokyo is even considering expanding the list of restricted products.Lee Min-sun reports.Tokyo recently announced it will impose restrictions on exports of chip supplies to South Korea.The decision came after the South Korean Supreme Court ordered Japanese companies to compensate Korean victims for wartime forced labor during the Japanese colonial period.The restriction takes effect Thursday on three supplies: fluorinated polyimides, photoresists and etching gas.These materials are needed to produce semiconductors and display screens for smartphones and TVs.In addition, Tokyo-based Kyodo News Agency reported Tuesday that Japan is considering adding more products to the export restriction list.They are likely be electric components that can be used for military purposes.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.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.With only a day left until the new export restriction takes effect, South Korean firms are taking actions to minimize damage to their operations.The companies have dispatched representatives to Japanese suppliers to secure as many supplies as possible, while identifying exactly which materials will be affected.Lee Min-sun, Arirang News.