Anchor: President Moon Jae-in delivered opening remarks in an emergency Cabinet meeting convened Friday, following Japan's decision to remove South Korea from its preferential trade partner list. He said Japan will face "big consequences" if it intentionally harms the Korean economy. 
Kim Soyon has this report. 

Report: President Moon Jae-in expressed "deep regret" over Japan's removal of South Korea from its preferential trade partner list. 

In an emergency Cabinet meeting broadcast live on Friday, he said Tokyo has refused diplomatic efforts to resolve bilateral disagreements and made a reckless decision that will further aggravate the situation.

[Sound bite: President Moon Jae-in (Korean)]
"As it has become clear that the responsibility for aggravating the situation lies with Japan by avoiding diplomatic efforts by our government and the international community, I warn the Japanese government that responsibility for what will happen next also rests with [them]." 

Moon said Tokyo did not accept Seoul's proposal to “put their heads together” and seek a resolution and neither did it accept a suggestion by the U.S. to establish a time frame for negotiations.

The president said that regardless of what Japan says, its decision to remove South Korea from a shortlist of preferential trading partners is clearly a reprisal for Korean Supreme Court rulings on the wartime forced labor issue.

[Sound bite: President Moon Jae-in (Korean)]
"It goes against Japan's own past position that individual reparation issues haven't lapsed." 
"What we take more seriously is that the Japanese government's measures have the clear intention of attacking [the South Korean] economy and to strike a blow against its future growth. It is extremely disappointing and regrettable that Japan, which we had regarded as our closest neighbor and ally, took such a measure." 

He promised full support for Korean businesses that may be affected by the move, including financial support and the securing of alternative import channels for parts and materials.

Moon added that the government will work to expand and develop domestic alternatives to Japanese-sourced materials. He pledged to raise the competitiveness of South Korea's components and materials sector so it will “never again be swayed by the technological dominance of another country.”

South Korea, he said, will seek to enact strong countermeasures in response to Japan's economic retaliation and step up response measures in phases in accordance with the Japanese government's moves.

The president also warned that if Japan intentionally seeks to damage the Korean economy, it will suffer consequences.
Kim Soyon, KBS World Radio News.