July 21, 2019
Latest News

Japan trade barriers on South Korea threaten global market

By Nora Olivé

Tokyo, Jul 8 (EFE).- Samsung representatives are in Japan seeking to defuse tensions that have emerged after Tokyo imposed trade on Seoul that could have a global impact.

On July 4, Japan rolled out restrictions on exports to South Korea on products that ranged from smartphone chips, television sets and personal computers, among other electronic devices.

Samsung Electronics, a Soth Korean electronics conglomerate company, is a worldwide leading manufacturer of consumer electronics, meaning any problem in its chain of production could have global ramifications.

Lee Jae-yong, one of South Korea's most high-profile businessmen and vice president of Samsung, arrived in Tokyo on Sunday night to meet with Japanese suppliers and entrepreneurs in order to address the problems that could arise as result of this trade blockade.

Lee, who has not made the details of the visit public, refused to comment on the matter upon his arrival and all meetings were held privately.

Local media have reported that the Samsung meetings with Japanese clients were linked to concerns arising from changes in export policies that could lead to delays in the supply chain and subsequent production.

In line with the new restrictions, Japanese suppliers would have to request a license for exporting three materials used in the production of semiconductors, which are used for the creation of smartphone displays, television sets and memory chips in South Korea.

In his first reaction to the measures, South Korean President Moon Jae-in on Monday urged Japan to revoke the measure and called for a dialogue to resolve the crisis diplomatically.

He also warned of retaliation if the Shinzo Abe government did not revoke the trade barriers.

Like Samsung, a significant number of South Korean firms depend on Japan for the supply of chemicals, electronic equipment, machinery and tools.

Hong Nam-ki, South Korean Minister of Economy and Finance, on Sunday met with heads of conglomerates such as Hyundai Motor, SK and LG, all of which are also affected by the new policy.

The new trade restrictions on South Korea are allegedly in response to the rulings by several South Korean courts - including the Supreme Court - ruling Japanese companies to pay compensation to Korean citizens that were forced to work for them during World War II.

Japan, which colonized the Korean peninsula between 1910 and 1945, maintains that all compensation for victims enslaved by Japanese companies was settled during the 1965 Treaty on Basic Relations.

Moon on Monday said that South Korea and the rest of the world were worried about the decision, which was politically motivated, and affected an area that was mutually beneficial.

The Japanese government has only cited significant weakening in the relationship of trust with its neighboring country for the new policies.

According to financial daily Nikkei, Samsung Electronics only has one month worth of supply of the materials affected by the export restrictions, which would compel the company to reduce or even stop its production if it is unable to find an alternative.

The technology giant is the leading manufacturer and global provider of memory chips and semiconductors and also dominates the market of OLED technology that is used across all types of screens.

Other leading electronics manufacturing companies such as Apple and Lenovo are also dependent on these components.

South Korean authorities have already announced that they will take the case to the World Trade Organization, arguing that it is a decision is lacks common sense.

nov-asb/sk/ch

News history
British Airways suspends all flights to Cairo, citing security concerns

London, Jul 20 (efe-epa).- British Airways said Saturday that it has suspended all flights to Egypt's capital for seven days, citing unspecified security...

Kenya inaugurates Africa's largest wind farm

Loiyangalani, Kenya, Jul 19 (efe-epa).-Kenyan President Uhuru Kenyatta on Friday inaugurated Africa's largest wind farm, a 310-MW power station located in a...

Japan, South Korea trade fresh barbs over export curbs

Seoul, Jul 19 (efe-epa).- South Korea on Friday said Japan’s curbs on exports of high-tech materials critical for manufacturing of memory chips was in...

Trump nominates Eugene Scalia to replace scandal-ridden labor secretary

Washington DC, Jul 19 (efe-epa).- The president of the United States on Thursday nominated a right-wing corporate lawyer to be the new secretary of labor...

Microsoft's cloud business drives record sales

By Asa Fitch and Dan Gallagher

China reaffirms zero tolerance to corruption in New Silk Roads initiative

Beijing, Jul 18 (efe-epa).- China’s top anti-graft watchdog on Thursday reaffirmed its pledge of zero tolerance to corrupt practices in the country’s...

KLM diktat to cover up while breastfeeding in flights causes global outrage

The Hague, Netherlands, Jul 18 (efe-epa).- Dutch airline KLM is facing a storm of criticism for asking mothers to cover up while breastfeeding their babies...

Australian MasterChef star fined for underpaying his employees

Sydney, Australia, Jul 18 (efe-epa).- A high-profile chef who serves as a judge on the Australian version of the popular television show MasterChef and is...

Japan's trade surplus fell by 19 percent in June

Tokyo, Jul 18 (efe-epa).- Japan recorded a trade surplus of 589.5 billion yen ($5.5 billion) in June, a figure that is 19 percent lower than the one...

US-China trade war threatens economic growth in LatAm

Guayaquil, Ecuador, Jul 17 (efe-epa).- The already flagging economies of Latin America could be hurt by the ongoing trade war between the United States and...

Japan's curbs can damage global tech industry, South Korea says

Seoul, Jul 17 (efe-epa).- South Korea on Wednesday said Japan’s curbs on exports of high-tech materials critical for manufacturing of memory chips could...

Amazon faces EU antitrust probe for third-party retailer data use

Brussels, Jul 17 (efe-epa).- The European Commission on Wednesday opened a formal investigation into US tech giant Amazon to see whether its use of...

Paraguay taxi drivers again at war with Uber

Asuncion, Jul 16 (efe-epa).- Hundreds of taxi drivers suspended their service this Tuesday to again drive through the streets of Asuncion with a long...

Mercosur seeks to build on EU trade deal with new agreements

Santa Fe, Argentina, Jul 16 (efe-epa).- South American economic bloc Mercosur is seeking to build on a trade agreement reached with the European Union and...

US Treasury Secretary Steven Mnuchin

Washington DC, USA, Jul 16 (efe-epa).- Social media behemoth Facebook will not offer its Libra cryptocurrency services until it had been proven to meet the...

737 MAX woes hobble budget carrier Ryanair

By Oliver Griffin

Energy company says faulty cable was behind power outage in New York

New York City, USA, Jul 15 (efe-epa).- United States energy company Con Edison, which is responsible for the power outage that affected over 73,000...

Mercosur looking to expedite enactment of pact with EU

Santa Fe, Argentina, Jul 15 (efe-epa).- Officials from Mercosur member-states Argentina, Brazil, Paraguay and Uruguay said here Monday that they will urge...

Billionaire Buffett's real estate unit joins forces with Spain's LARVIA

New York, Jul 15 (efe-epa).- Berkshire Hathaway HomeServices, the real estate unit of billionaire Warren Buffett's Berkshire Hathaway Inc. conglomerate,...

Trump says tariffs taking a toll on China's economy

Washington, Jul 15 (efe-epa).- President Donald Trump said Monday that the tariffs imposed by his administration were taking a toll on China's economy,...

Huawei plans layoffs in US as blacklisting takes a toll

By Dan Strumpf

South Korea, Israel to push for early FTA deal

Seoul, Jul 15 (efe-epa).- The leaders of South Korea and Israel on Monday agreed to accelerate negotiations to reach a free trade agreement.

China's GDP grew 6.3 percent in 1st half of 2019, 27-year low in 2nd quarter

Beijing, Jul 15 (efe-epa).- China's gross domestic product grew by 6.3 percent during the first half of 2019, 0.5 percentage points less than in the same...

Former FARC rebels turn to coffee growing in Colombia

By Claudia Polanco Yermanos

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.