President Moon Jae-in has fired off a warning to Japan, saying Tokyo's economic retaliations could also harm its own economy.
He also called on Japan to once again return to the negotiating table.
For more on the president's remarks we go live to our Shin Se-min on the line.
Se-min, tells us more about the message delivered by the president.
It's the third time the president has commented on this issue, and it's the strongest-worded one seen thus far.
President Moon Jae-in, for the first time, responded to Japan's accusations and claims one-by-one-- and said Japan's move is not only unreasonable, but also an unwise one.
But first, let's listen to a part of his remarks made during a meeting with his top aides.
"First, it is very unwise for Japan to link historical issues with the economy and their action runs counter to the development of relations between the two countries."
The president also said that the Korean government had proposed to Japan, a smooth solution to the issue of victims of forced labor during the Japanese colonial rule, but that Japan has failed to hold proper consultations, taking one-sided measures instead.
Also pointing to Japan. which has claimed that Seoul allowed sensitive materials to be reexported to North Korea, the president said such an accusation is a serious challenge to the South Korean government that had devoted its strength for peace on Korean Peninsula while also abiding by all UNSC resolutions and international sanctions.
And speaking in terms of economic damage, a warning from the South Korean president.
"Korean companies will break away from relying on Japanese semiconductor material exports and instead diversify its import partners or choose the path of localization. In the end, I warn that more damage will be done to the Japanese economy."
The president added that his government's will to turn this into a blessing is firm, and that it will do all it can to resolve this diplomatially while supporting Korean firms to counteract this situation with confidence.
That's all for me at this hour-- but I'll be sure to bring a more comprehensive review of the president's remarks in our later newscast.