S. Korea to use Japan’s export curbs as chance for Korean economic growth: official

SEOUL, South Korea will make efforts to use Japan's retaliatory export restrictions as a chance to catalyze innovative growth, a top Cheong Wa Dae official told lawmakers Tuesday.

Noh Youngmin, presidential chief of staff, told the parliamentary steering committee that the government will take necessary steps against Japan's removal of South Korea from a list of trusted buyers.

We will make (the current situation) an opportunity to develop the South Korean economy a step forward in a way that will not be swayed by 'technological hegemony', Noh told lawmakers.

On Friday, Japan's Cabinet approved a proposal to remove South Korea from the white list of countries for preferential trade treatments, following its July 4 imposition of export curbs of key hightech materials against the South.

Noh described Japan as taking a deadend path, saying that Japan's actions are clear economic retaliatory measures against South Korean court rulings over compensation for Tokyo's wartime forced labor.

The government will remove Japan from its list of trusted trading partners in order to strengthen export controls and take measures to ensure the safety of Korean nationals when it comes to tourism, food and waste, he added.

Meanwhile, Kim Sangjo, Cheong Wa Dae chief of staff for policy, said chances are very slim that potential outflows of Japanese funds could destabilize Korean financial markets.

Some raise concerns that Japanese investors may withdraw their funds from Korean capital markets as part of Tokyo's retaliatory trade measures.

Korea's financial fundamentals are different from what they were in the midst of the 199798 Asian financial crisis 20 years ago. So I think such a possibility is very low, Kim said.

Source: Yonhap news Agency

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