Seoul is no longer pursuing its world trade organization (WTO) dispute with Japan, one that had hindered relationships hurting the display industries in both countries.
Reuters is reporting that trade hostilities between South Korea and Japan are going to dissipate and that South Korea is suspending its complaint to the WTO. This followed Japan’s curbs on exports to South Korea of hydrogen fluoride, photoresists, and fluorine polyimide (essentially hitting the country’s semiconductor and display industries) in 2019. Japan’s move, in turn, was a reaction to South Korean courts, back in 2018, ordering Nippon Steel to compensate its citizens who were used as forced labor during World War II. Japan’s actions then led to a complaint by Seoul against Japan at the WTO.
Japan produces 90% of fluorinated polyimide and 70% of etching glass worldwide, as well as 90% of photoresists. Samsung, SK Hynix, and LG Display were all hit by the trade tit for tat between the two companies because of their reliance on Japanese suppliers for the three key materials. The curbs removed fast tracking of exports to South Korea; the demands put on exporters required they meet strict requirements to gain approval from the Japanese government, and created a lag in shipments.
Japan is also home to the latest manufacturing machinery for use in OLED production. With the expanding footprint of US sanctions on China, and a global downturn, the two countries probably figured out that this about as good a time as any to put aside grievances to maximize support of their manufacturing industries because they both stand to benefit from the uncertainties in the market.
