The World Trade Organization’s Dispute Settlement Body has decided to set up a panel to look into South Korea’s complaint over Japan’s trade restrictions, the Ministry of Trade, Industry and Energy said Wednesday.

The DSB makes decisions on trade disputes between governments that are adjudicated by the WTO. Panels are limited to making recommendations.

Members of the multilateral trade agency have agreed to set up a panel following South Korea’s request last month.

In July last year, Japan announced restrictions on exports of high-tech materials -- photoresist, etching gas and fluorinated polyimide -- crucial for the nation’s semiconductor and display industries.

South Korea had filed a complaint with the WTO in September 2019, but decided to suspend the case after two months in a goodwill gesture to settle the trade war.

In June 2020, however, it refiled the suit after Japan refused to compromise and “meet expectations.”

According to WTO’s rules, a panel should be formed unless all members oppose a second request.

The Industry Ministry said it would take prompt actions to prove Japan’s export restrictions were intentional and discriminative and do not comply with the WTO’s rules.

According to the ministry, it would take around 10-13 months to receive the final panel report. The suit, however, could take years if Japan appeals against the panel’s decision.

By Shim Woo-hyun (ws@heraldcorp.com)