We begin with the South Korean prime minister's response... to Tokyo's decision to drop Seoul from its trade whitelist.
Prime Minister Lee Nak-yon strongly condemned Japan for its decision,... saying it "crossed a line" that it shouldn't have.
He warned of stern action on Seoul's part,... and follow-up measures to deal with the trade spat.
Our Kim Min-ji starts us off.
Prime Minister Lee Nak-yon condemned Japan's expanded trade controls,... vowing to take stern action in response.
Speaking at a cabinet meeting on Saturday,... he said Tokyo has crossed a line that it should not have and that South Korea will use various channels to raise awareness... that Japan's actions are unjust and damaging.
Tokyo on Friday decided to strip Seoul of its preferential treatment in export procedures,... on top of imposing tougher restrictions on the export of three high-tech materials used in the production of chips and displays.
"Tokyo's action will not only threaten bilateral relations, but also the interdependent global economic system and the trilateral security alliance with the U.S. It has crossed a line that it shouldn't have."
The Prime Minister said that an extra budget -- which was approved by South Korea's parliament on Friday -- will be implemented as soon as possible... to support local firms that will likely be hit by Japan's export curbs.
Of the 4-point-9 billion U.S. dollar extra budget,... roughly 230 million dollars has been set to deal with Tokyo's trade actions.
The majority of that amount... will be used for R&D so that South Korea's parts and materials industries can become more competitive... and localize the production of items that have been restricted by Japan.
"We will swiftly and efficiently implement the budget, so that we can maximize the positive impact. We will allocate the budget to the areas where it is most needed. We will also set aside funds to bolster the country's parts and materials sector in next year's annual budget.
The Prime Minister vowed to make determined efforts to devise follow-up measures through inter-agency and private-public cooperation -- and cushion the blow of the fallout.
On Sunday,... a meeting between senior lawmakers of the ruling party and top officials from the presidential office and the government... will also be held to discuss their next course of action.
Likely on the table will be long-term measures... that include legislative and financial support.... to prepare the country for a drawn-out trade war,... should Japan take further economic retaliatory actions.
Kim Min-ji, Arirang News.
