Japan has filed a complaint against South Korea with the World Trade Organization(WTO) over subsidies paid to South Korean shipbuilders.

According to a WTO filing published on Tuesday, Japan claimed that the measures in question relate to the development, production, marketing, and/or sale or purchase of commercial vessels, including vessels designed to carry crude oil, liquefied natural gas, and shipping containers. 

In the complaint, Tokyo requested bilateral consultations with South Korea, the first step under the world trade body's dispute settlement process. If the talks break down, the case will be brought to the WTO’s dispute settlement panel.

The Japanese government claims that since 2015, South Korea provided financial assistance totaling about 12 trillion won to Daewoo Shipbuilding and Marine Engineering, thus enabling the firm to sharply cut prices and win orders, causing excessive competition in the global shipbuilding industry.