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What led to the 2019 Korea-Japan Trade Dispute? Judicial Cases of Japan’s Wartime Forced Labor

  • The Journal of Northeast Asia Research
  • Abbr : NEA
  • 2025, 40(1), pp.193~228
  • DOI : 10.18013/jnar.2025.40.1.006
  • Publisher : The Institute for Northeast Asia Research
  • Research Area : Social Science > Political Science > International Politics > International Relations / Cooperation
  • Received : December 30, 2024
  • Accepted : February 23, 2025
  • Published : February 28, 2025

Jihye Kam ORD ID 1

1성신여자대학교

Accredited

ABSTRACT

Japanese export controls on hydrogen fluoride, photoresists, and fluorinated polyimides, used in semiconductor and display manufacturing, took effect in August 2019. Prompted by the Supreme Court’s ruling on compensation for Japan’s wartime forced laborers, South Korea became the only country removed from Japan’s white list, which exempts exports from additional screening procedures. This decision triggered the Korea-Japan trade dispute, which lasted until June 2023. To investigate the legal causes and economic consequences of the dispute, this study reviews cases of Japan’s wartime forced labor and comfort women, examines trade balance trends, and analyzes stock market indices in both countries before and after the dispute, with particular emphasis on the semiconductor industry. Lawsuits filed by forced laborers, similar to those involving comfort women, have resulted in inconsistent court decisions, primarily due to varying judicial interpretations of ‘state sovereign immunity’ among judges, rather than adherence to Supreme Court rulings. This inconsistency could lead to further trade disputes in the near future. Although the significant decline in imports of hydrogen fluoride, photoresists, and fluorinated polyimides from Japan has had minimal impact on South Korea's semiconductor exports, it has caused short-term volatility in the stock market. The findings suggest that lower courts should issue coherent rulings based on clear Supreme Court guidelines on the interpretation of state sovereign immunity to strengthen Korea-Japan relations.

Citation status

* References for papers published after 2023 are currently being built.