Japan, South Korea meet over trade dispute but no quick fix seen

SeniorJapanese andSouthKoreantradeofficials met on Monday for the first time sinceJapanimposed controls on exports to its neighbor of high-technology materials, plunging testy relations between the USallies into a new crisis.

Japanimposed the curbs on exports toSouthKoreaof three materials used to make semiconductors in July, threatening a pillar of theSouthKorean economy and the global supply chain of chips.

Japancited its concern about insufficientSouthKorean controls on the materials, suggesting they might have been shipped to NorthKorea, although the curbs came as relations souredoveradisputeoverJapan's wartime actions.

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Yoichi Iida, director-general at theJapanesetradeministry'stradecontrol department, and hisSouthKorean counterpart Lee Ho-Hyeon met in Tokyo for the first senior-level bilateral talks in three and a half years.

The two made no comment to each other or to media as they shook hands at the beginning of theirmeeting.

On their agenda will beJapan's tighter rules on its exports and its removal ofSouthKoreafrom its list of countries with fast-tracktradestatus.

SouthKorearesponded by droppingJapanfrom its favored-tradelist and threatening to end security cooperation.

Japan's chief cabinet secretary Yoshihide Suga played down expectations for anyquicksolution to thedisputeon Monday.

"We look forward to a comprehensive assessment," Suga told a news conference, suggesting a solution would take time.

Relations between the neighbors have been plagued for years for bitternessoverJapan’s colonisation of theKorean peninsula from 1910 to 1945, which saw forced use of labor byJapanese companies and the use of “comfort women”, aJapanese euphemism for girls and women, many of themKorean, forced to work in its wartime brothels.

Japan's Julytraderestrictions came as it complained of the erosion of trust withSouthKoreaafter aSouthKorean court ruled last year thatJapanese companies had to pay compensation toSouthKoreans forced to work inJapanese factories duringJapan’s occupation.

Japanbelieves the issue was settled under a 1965 treaty and the court ruling violated international law.

Thetradedisputehas raised fears about security cooperation althoughSouthKorealast month decided to retain an intelligence-sharing pact withJapan, after threatening to end it.