Prime Minister Lee Nak-yon said Saturday that Japan's decision to remove South Korea from its whitelist of trusted trading partners has "crossed a line it should not have."  

In a Cabinet meeting, Lee said the whitelist exclusion is the second retaliation following restrictions to high-tech material exports to South Korea.

He said Japan's measures jeopardize bilateral relations as well as global free trade and economic cooperation that is interdependent, and can also cause a crack in the trilateral security alliance with the United States.

Lee said Seoul cannot but sternly respond.

He then laid out four goals related to the economy which South Korea will pursue in the wake of Japan's trade curbs.

They are fostering the parts and materials sector to reduce dependence on foreign imports, establishing a collaborative system among large and smaller firms, reviving manufacturing, and lastly, through these measures, creating jobs.

The prime minister also noted the extra budget bill finally passed in parliament on Friday includes over 270 billion won set aside to cope with Japan's trade restrictions.

He promised to swiftly and efficiently execute the budget to maximize effects.