[5] Several external observers have stated that the current tensions are a reflection of or are responses to various historical grievances from Japan's occupation of the Korean peninsula[5][11][12][9][4][13] and from recent regional flash points, such as relations with North Korea and China.

[17] In Japan, 3 companies (JSR Corporation, Showa Denko, and Shin-Etsu Chemical) as well as Kanto Denka Kogyo, produce 90% of the world's Fluorinated polyimide and Photoresist, both of which are used for LCD and OLED displays, and 70% of Hydrogen Fluoride, used to make LSI, DRAM and NAND flash memory.

[22] The two countries established diplomatic relations in December 1965, following the signing of the normalization treaty in June of the same year when Japan recognized South Korea as the only legitimate government of the whole Korean Peninsula.

[25][26] To further integrate itself, laws such as the COCOM (Coordinating Committee for Multilateral Export Controls) were passed, and a system to regulate the import of strategic materials through certificates of acceptance and customs was created in July 1990.

[51] The two countries' bilateral relations then declined in late 2018, after the Supreme Court of South Korea and other high courts made a decision that ordered several Japanese companies, including Mitsubishi Heavy Industries, Nachi-Fujikoshi and Nippon Steel, to make compensations to the families of South Koreans who were unfairly treated and illegally forced to supply labor for World War II war efforts, such as building ships and aircraft for Japan without pay at a Mitsubishi shipyard and machine tool factory in Nagoya in 1944.

The Japanese government protested these decisions, claiming that the issue was settled under the 1965 treaty of Normalization of Diplomatic relations between the two countries and stating that it would be taking "necessary measures" against South Korea.

[62] On July 1, Japanese Ministry of Economy, Trade and Industry (METI) applied updated licensing policies and procedures on the export and transfer of controlled items and their relevant technologies to South Korea.

[75][76] On July 12, representatives from Japan and South Korea held a meeting in Tokyo to discuss the worsening diplomatic relations between the two countries, but failed to resolve the issue.

[87][note 2] That means the Japanese manufacturers must apply for approval for each technology-related contract for 1,120 strategic materials that will be exported to South Korea, rather than the simpler checks granted to preferential trade partners.

[88][89] On August 8, the Japanese government, at a news conference held by Seko, approved shipments of a key material used in making chip and displays to South Korea to ease tensions between the two countries.

[90] The approval was granted on August 7, and according to South Korean Prime Minister Lee Nak-yeon, there was a material known as EUV photoresists, which is crucial for Samsung's advanced contact chipmaking production.

[103] On September 3, METI submitted opinions and questions regarding the plans of South Korea to revise the public notice of the exportation and importation of strategic items.

[104] South Korean Trade, Industry, and Energy Ministry announce to file a complaint with the WTO over Japanese tighter export controls and restrictions of three materials.

[116] On December 4, Japanese METI held a Director-General level preparatory meeting for the 7th Japan-Korea Export Control Policy Dialogue with the Korean Ministry of Trade, Industry and Energy (MOTIE).

[118] Moon Jae-in said in new year's address, "In the face of Japan's export restrictions, business, labor, the Government and the people all joined forces to localize production of key materials, components and equipment.

At the Dialogue, both sides updated and exchanged views on improvements in system and implementation of trade and sensitive technology transfers controls, to contribute to exploring resolution of issues of concern.

[44] In a phone call following his inauguration in November, Japanese Prime Minister Suga Yoshihide and South Korean President Moon Jae-in agreed to strive to improve bilateral ties in earnest.

Secretary-General of the Japan-Korea Parliamentarian's Union Kawamura Takeo visited Seoul in October to discuss possible ways to move forward with South Korean politicians.

[137] The South Korean government is also set to review whether to join the CPTPP (which includes Japan as one of its members) putting the matter among its 10 strategic goals for international economic policies.

Both Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida pledged to resume regular visits and end the trade dispute by restoring each other onto their countries' respective whitelist.

[153][154] The South Korean government, led by the First Vice Foreign Minister Cho Sei-Young, summoned the Japanese ambassador to lodged the protest against the export curbs by Japan on July 1.

[177] About 5,000 people, including members of 596 civil groups, held a candlelight vigil on July 27, in Gwanghwamun Plaza and in front of the Japanese embassy to criticize Prime Minister Shinzo Abe for imposing trade restrictions.

[199] The Japanese government's stance is based on global export control regime to prevent resale of strategic goods,[200] and it is a case of updating implementation due to significantly undermined trust with South Korea.

Countries that rely on South Korea's semiconductors such as the United States, China and even Japan will all be adversely affected, causing a domino effect on the global supply chain in computer and smartphone industries.

[224] On the annual conference of the Korea-Japan Economic Association in Seoul, 300 business leaders from the two countries have urged both governments to find a diplomatic solution for the trade disputes.

In that meeting, Japan and South Korea agreed to discuss efforts to resolve the conflict over compensating Korean forced laborers that has escalated into a trade war.

[246] Moody's Investors Service, in a "Global Macro Outlook 2019–20" report released on August 26, revised down forecast economic growth for both South Korea and Japan.

On September 4, according to data from Korea Automobile Importers & Distributors Association (KAIDA), the combined sales of Japanese cars stood at 1,398 units in August, more than halving from a year earlier.

Deputy of Blue House national security office, Kim You-geun, announced on August 22 that South Korea decided to give Japan the required 90-day notice to terminate the military intelligence sharing pact.

[281] On August 7, 2019, the chairman of Kolmar Korea, Yoon Dong-han, played a video by a YouTuber named Leeseob TV praising Shinzo Abe and criticizing the Moon Jae-In administration.