Japan has filed fresh dispute proceedings at the World Trade Organization against South Korea over alleged shipbuilding subsidies, a sign that bilateral tensions may be resurfacing after a period of apparent calm.
The Japanese government requested "a bilateral consultation as part of the WTO's dispute settlement procedure over South Korea's measures to restructure the shipbuilding industry," South Korea's trade ministry said in a statement, adding the request was made Friday. "We find Japan's claim groundless and will fully explain that the measures comply with international norms."
The origin of the dispute goes back to November 2018 when Japan complained to the WTO that South Korea provided funds, loans, guarantees, insurance and other financing in violation of the organization's subsidies agreement, resulting in losses for its shipbuilders. That led to a first consultation in December 2018, but Japan later deferred its request for WTO involvement.