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Japan will give a further output of the high-tech equipment to South Korea

SEOUL (Reuters) – Japan has agreed to allow the transfer of high-tech equipment to South Korea for the second time since the imposition of export curbs last month, two of the sources said, ahead of talks by government officials this week to resolve a dispute arising out of their troubled history.

FILE PHOTO: A businessman walks away from a loading area at a port in Tokyo, Japan, on March 16, 2016. REUTERS/Toru Hanai

The relations between the two U.S. allies have been compounded at the end of last year, when a South Korean court ordered the Japanese firm to compensate its former workers are being forced by the companies to work with during the second world War.

At the beginning of July, and Japan tightened controls on shipments to South Korea, the three materials which are used in chips and displays threatens to disrupt the global tech supply chain. Japan also announced a plan to provide for the removal of South Korea’s fast-track the export status later this month.

The material is made available for the japanese export, to Samsung Electronics Co Ltd (005930.KS), South Korea, photoresists, which are crucial to the tech giant is in advanced contract chipmaking production, people familiar with the matter said on Tuesday.

Samsung’s president and the South Korean ministry of commerce spokesman, declined to comment. A Japanese officer who is in charge of the issue, which was not available for comment.

An official at South Korea’s presidential office has confirmed that the output is in a brief, but said that “uncertainty” will continue to be, to Japan, to completely remove the application of more stringent controls on the export setting.

“Tokyo’s latest export approval will be positive for the local industry, but I don’t see Japan’s move as a conciliatory message to South Korea,” a South Korean government official told Reuters, requesting anonymity due to the sensitive nature of the subject matter.

Earlier this month, Japan gave the green light for the export of photoresists to Samsung Electronics for the first time since the imposed constraints.

Samsung Electronics shares ended up 1.95% on Tuesday, leading the broader market .KS11 gain of 1.05%.

CARBON FIBER

Japan’s latest move comes ahead of a meeting with Japanese Foreign Minister Taro Kono and his South Korean counterpart, Kang Kyung-wha, in Beijing on Wednesday.

“This is a signal that Japan will not continue to escalate the tension. This has been a positive one in the sense that it creates an atmosphere of talking,” said Ahn Duk-geun, an international studies professor at Seoul National University.

However, he said that he did not expect a breakthrough in the standoff, citing major differences on how to resolve the forced labor issue between the two countries. “I’m hoping that at the very least can be trusted,” Low said.

“We need to actively express our position, but it is a very difficult situation,” Kang said at the airport in Seoul, south korea, on Tuesday before leaving for Beijing.

Separately, the South Korean President, Moon Jae-in pledged to support the local carbon-carbon industry, and, as part of its efforts to reduce dependence on Japan for imports of high-tech materials are used.

The moon took part in an event as a result of the South Korean company, Hyosung, Advanced Materials, 298050.SO, to announce that a total of 1 trillion won ($828.55 million) of investment by 2028, in the increase of the production of carbon fiber, one of the items that are potentially subject to more stringent export controls, and the use of part of the hydrogen cars and aircraft.

Currently, South Korean companies rely on japanese Toray Industries (3402.The others are for carbon fiber supplies, industry officials say.

Reporting by Hyunjoo Jin; Additional reporting by Yuna Park in SEOUL, south korea, and Makiko Yamazaki in TOKYO ; Editing by Stephen Coates and Muralikumar Anantharaman

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