S.Korea tech material producers gain on Japan's plans to tighten exports

Dongjin Semichem

01/07/2019 02:58

** South Korean firms producing materials used in
semiconductor manufacturing process rise after Japan says it
will tighten restrictions on exports of tech materials to South
Korea
    ** Japan will tighten restrictions on the export of
high-tech materials used in smartphone displays and chips to
South Korea in connection with a dispute over a South Korean
ruling on war-time forced labour - industry ministry
 urn:newsml:reuters.com:*:nT9N234028
    ** The row between Japan and South Korea flared last October
when South Korea's Supreme Court ruled that Japan's Nippon Steel
 5401.T  must compensate South Koreans for forced labour during
World War Two
    ** South Korea's Foosung Co Ltd  093370.KS , producer of
hydrogen fluoride, and Dongjin Semichem Co Ltd  005290.KQ ,
which supplies photoresist to Samsung Electronics  005930.KS ,
will get a benefit from the restrictions, Kim Yang-jae, an
analyst at KTB Securities, says in a report
    ** Foosung and Dongjin Semichem soar 11.3% and 11%,
respectively 
    ** The restrictions would deal a blow to domestic
chipmakers, but such restrictions will not be prolonged as South
Korean chipmakers' reduced supply to Japan will also hit Japan,
says Park Sung-soon, analyst at Cape Investment & Securities
    ** Samsung Electronics and LG Electronics  066570.KS  fall
1% and 3.2%, respectively, while SK Hynix  000660.KS  gains 0.8%
    ** The broader KOSPI market  .KS11  was steady

 ((hayoung.choi.thomsonreuters.com@reuters.net;
yuna.park.thomsonreuters.com@reuters.net))