The decision to remove South Korea from a so-called white list means that Japanese exports to South Korea now require additional screening to make sure they are not used for weapons and military applications.
The new restrictions go into effect August 28.
The standoff between the two countries started last month when Tokyo placed controls on exports of three chemical materials to South Korea. The materials — fluorinated polyamides, photoresists and hydrogen fluoride — are used to make computer chips, among other things. Those restrictions are already having an impact on the global semiconductor industry. South Korea's Samsung and SK Hynix make nearly two thirds of the world's memory chips, which are used in everything from smartphones to connected cars. Smartphone makers including Apple and Huawei rely on memory chips from the South Korean companies.
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