Moon warns Japan of grim consequences of export curbs against S. Korea

SEOUL, Aug. 2 (Yonhap) -- President Moon Jae-in warned Friday that Japan will face severe consequences of its "reckless" decision to drop South Korea from the list of favored trade partners. He described Tokyo's move to expand export restrictions as a "grave challenge" to bilateral relations and a "selfish" act that will heavily damage the global economy. He was presiding over an emergency Cabinet meeting at Cheong Wa Dae on the worsening trade rift between the neighboring countries. His opening remarks were broadcast live. The meeting came after Japan's Cabinet approved a proposal to drop South Korea from the "whitelist" of 27 countries given preferential trade status in apparent additional economic retaliation over a row surrounding Japan's wartime forced labor. Moon voiced "deep regret" over the move, calling it a "very reckless decision that's further exacerbating the situation." He pointed out that Japan has finally ignored efforts by South Korea and the international community to resolve the issue diplomatically. "As it has become clear that the responsibility for worsening the situation lies on Japan, I clearly warn that the Japanese government will be fully responsible for what will happen, going forward," Moon stressed. In response to Japan's "unjust economic retaliation," he added, the South Korean government will take "corresponding" measures in a resolute way. Even if Japan is an economic powerhouse, South Korea has "methods" to counter Japan's attempt to damage its economy, he said. "As I have already warned, if Japan deliberately strikes our economy, it will have to endure huge damage," Moon emphasized. Seoul does not want the vicious cycle of tit-for-tat actions, he said, adding the only way to stop it is for Japan to retract the trade restrictions as early as possible and have dialogue with South Korea. Asia's fourth-largest economy has potential to overcome such difficulties, he said. "But history repeats itself if (we) succumb to the challenge," he said. "It's time for South Koreans to turn the current trouble into a chance to achieve another stage of economic development." The president stressed the Korean economy can outstrip the Japanese economy, in an apparent message not just to Japan but also to the people here. lcd@yna.co.kr (END)