Tokyo-Seoul feud deepens with disputed accounts of trade meeting

Japan has restricted export of three materials citing what it has called ‘inadequate management’ of sensitive items exported to South Korea. (AP/File)
Updated 14 July 2019
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Tokyo-Seoul feud deepens with disputed accounts of trade meeting

  • The ongoing export dispute may threaten global supplies of microchips, smartphone displays

SEOUL, TOKYO: A row between Japan and South Korea escalated on Saturday, with contested accounts of a frosty meeting the day before that had failed to make progress on a dispute that could threaten global supplies of microchips and smartphone displays.
Tokyo lodged a protest against Seoul, saying it had broken an agreement on what the two sides would disclose from the Friday discussions on Japan’s curbs of exports to Korea of some materials used to make high-tech equipment, said Japanese Trade Ministry official Jun Iwamatsu.
Japan’s Ministry of Economy, Trade and Industry (METI) also disputed a Korean official’s statement that Seoul had asked Japan on Friday to withdraw the restrictions.
But a Korean Trade Ministry official shot back that Seoul had “clearly demanded Japan withdraw its trade restrictions at yesterday’s meeting, and there should be no disagreement over that matter with Japan.”
He told Reuters the two sides had discussed what they would disclose but that there was no agreement.
“I am frustrated,” said the Korean official, who declined to be named due to the sensitivity of the matter.
Japan recently tightened restrictions on the export of three materials used in high-tech equipment, citing what it has called “inadequate management” of sensitive items exported to South Korea, as well as a lack of consultations about export controls.
But the dispute also appears to be rooted in a decades-old wartime disagreement. It comes amid deep frustration in Japan over what Tokyo sees as Seoul’s failure to act in response to a South Korean court ruling ordering a Japanese company to compensate former forced laborers from the World War II.
In the Friday talks, South Korean officials expressed regret over Japan’s export restrictions and asked Tokyo to remove them, participant Han Cheol-hee, a Trade Ministry director, told reporters as he was leaving Japan on Saturday.
In response, Iwamatsu, director of METI’s trade control policy division, told a hastily arranged news conference: “We’ve checked the record of the meeting ... We found no clear comment asking for the withdrawal.”

FASTFACT

• Japan recently tightened restrictions on the export of three materials used in high-tech equipment.

• Seoul regrets the curbs and wants those restrictions lifted.

• The last meeting failed to produce results and the details will be made public later.

Iwamatsu said the two sides had agreed on what they would disclose from the talks but that the Korean official went beyond the agreement. “We believe this is something that affects our relationship of trust,” he said.
One reason for the sensitivity over characterizing the talks could be a Japanese fear that if Korea can assert that it used consultations and unsuccessfully sought to have Tokyo withdraw the curbs, Seoul could justify escalating the matter to the World Trade Organization.
“The nature of the meeting is not a consultation, but an occasion where Japan gives an explanation after getting a request from the South Korean government,” Iwamatsu said.
“Therefore, we would like to correct an expression from a South Korean official that the meeting can appropriately be described as consultation for problem solving.”
Friday’s talks began with two negotiators from each side facing off in stony silence in a small meeting room, without greeting each other and with the Japanese officials not standing or bowing when their Korean counterparts entered.
A Japanese official later explained that the bureaucrats had earlier met and exchanged greetings. South Korean media, however, reported there was a “cold reception” for their officials, and that the meeting took place in a room that looked like a “garage.”


Stc Group issues US dollar-denominated sukuk with a total value of $2bn

Updated 09 January 2026
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Stc Group issues US dollar-denominated sukuk with a total value of $2bn

RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.

The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.

It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.

The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy. 

This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.

This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position. 

It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.