TOKYO EXPRESSES REGRET OVER SEOUL'S DECISION

[Anchor Lead]

Tokyo has expressed regret over what it calls "Seoul's unilateral announcement." The head of Japan's top business group passed the blame to Korea by saying that the Moon Jae-in administration is instigating anti-Japanese sentiment yet again.

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​Tokyo expressed regret over Seoul's decision to resume its WTO complaint regarding Japan's export restrictions. On May 12 Seoul officially requested that Tokyo reveal its stance on the matter by late May. But despite three weeks of talks behind closed doors, Japan is accusing South Korea of making a "unilateral announcement."

[Soundbite] TOSHIMITSU MOTEGI(JAPANESE FOREIGN MINISTER) : "It is highly regrettable that Korea has made a unilateral announcement despite the ongoing dialogue between the two countries."

Japan's Ministry of Economy, Trade and Industry, which oversees the matter, says it will respond in line with WTO regulations, insinuating the country has no intention to withdraw its trade measures for the time being.

[Soundbite] HIROSHI KAJIYAMA(JAPANESE MINISTER OF ECONOMY, TRADE AND INDUSTRY) : "We will assess export management of Japanese companies and the country importing their products (Korea)."

The head of the Japan Business Federation added fuel to the fire by saying that Korea's ruling party is poised to attack Japan following its sweeping victory in the parliamentary elections, adding the situation must be watched closely.

[Soundbite] HIROAKI NAKANISHI(CHAIRMAN, JAPAN BUSINESS FEDERATION) : "I expected such ambiguous policies fueling anti-Japanese sentiment."

Pundits say Tokyo's reaction is not surprising as the export restrictions came in response to the Korean Supreme Court's ruling on Japan's wartime forced labor, ordering Tokyo to compensate the victims. Some observers believe, bilateral ties could deteriorate again as the confiscated assets of Japanese businesses will likely be converted into cash within this year.