S.KOREA ON EXPORT RESTRICTIONS

[Anchor Lead]

President Moon Jae-in revealed for the first time his stance on Japan's export restrictions on key semiconductor materials. Calling the restrictions a politically-driven move, the president vowed to take countermeasures, should they inflict damage on South Korean businesses. At the same time, he urged Tokyo to retract the export curbs, saying that a continued tit-for-tat trade dispute is undesirable.

[Pkg]

President Moon Jae-in made his first official comments on the export restrictions Japan imposed on Korea last week. He made it clear the trade curbs are politically motivated.

[Soundbite] PRES. MOON JAE-IN : "There are concerns worldwide about Japan's move to restrict reciprocal trade between private businesses for a political purpose."

Moon pointed out, the measure is putting both South Korean and international supply chains at risk. These remarks indicate that he will seek to cooperate with the international community in tackling the Japanese trade restrictions. He also warned that South Korea will take corresponding countermeasures if necessary.

[Soundbite] PRES. MOON JAE-IN : "The government will have to take countermeasures if actual damage is inflicted on South Korean businesses."

However, the president urged Tokyo to withdraw the trade controls and to settle the issue through discussions. He highlighted that a vicious cycle of response and counter-response is not desirable for either side. Moon called on Japan to return to abiding by the principles of free trade it has always advocated, and live up to the international community's expectations that countries will use trade as a means of achieving common prosperity. The government is seeking to resolve the issue through cooperation with the international community. Trade minister Yoo Myung-hee is scheduling a visit to the U.S.

[Soundbite] YOO MYUNG-HEE(TRADE MINISTER) : "Multiple measures are under review to promote cooperation with the international community."

She will likely seek Washington's cooperation by explaining that the Japanese trade curbs will impact American businesses. U.S. IT companies such as Apple and Intel will inevitably suffer if South Korea's semiconductor production is derailed. Along with such efforts, the government plans to pursue a two-track approach and continue persuading Japan to retract the trade restrictions through bilateral talks.