The following letter was written by Kim Seung-ho, deputy trade minister for multilateral and legal affairs of the Ministry of Trade, Industry and Energy, and published by the U.K. Financial Times on Sept. 25, 2019. Korea.net has received the author's permission to publish his letter.

From Kim Seung-ho, Deputy Trade Minister for Multilateral and Legal Affairs, Sejong City, Republic of Korea

Sept. 25, 2019

I wish to address the misleading impression created by a Financial Times article ("WTO rules for Japan in anti-dumping case with South Korea," September 10) that quoted Japanese officials who claimed that the World Trade Organization appellate body had ruled for Japan in a case where it challenged Korea’s anti-dumping duty on Japanese pneumatic valves.

The core element of this case is whether Korea could continue the anti-dumping duty, and it was effectively decided that Korea could. To come straight to the point, it is another victory for Korea, following the appellate body’s ruling on Korea’s food import ban in April.

That being so, I agonise over the recent deterioration of economic relations between Korea and Japan, prompted by the Korean Supreme Court’s judgment late last year upholding the Korean victims’ entitlement to damages for their forced labour during the second world war.

In July, Japan responded by imposing export restrictions on three materials used in producing semiconductors and displays that are destined for Korea. In August, Japan removed Korea from the favoured nation list for trading dual-use materials. Japan’s unilateral actions have caused serious disturbance not only to the economic relationship between Korea and Japan, but also to the global value chain for electronics industries.

On September 11, Korea requested a consultation on the July export restriction under the WTO agreement, hoping to invite Japan into proper dialogue to settle the differences.

Given the intricate interdependence between our two nations, conflicting issues of economic interest arise frequently and sometimes become politicised. In the past, Korea and Japan wisely handled such issues through constructive dialogue. It is alarming that such a constructive dialogue is not taking place at the moment between the two important Asian nations.

Korea will make every good faith effort to reach a mutually beneficial solution at the requested consultation. I sincerely urge Japan to act reciprocally.

Otherwise, Korea’s legal expertise will not be spared in defending our interests, just as they were not in the valves and food import ban cases.

Kim Seung-ho

Deputy Trade Minister for Multilateral and Legal Affairs, Sejong City, Republic of Korea