Japan has lifted its export curbs on key chip materials to South Korea.

The trade ministry in Seoul announced the agreement between the two governments as a result of the three-day bilateral policy meeting on managing exports that ended on Thursday.

In response, South Korea has decided to withdraw its World Trade Organization complaint filed against Japan's export curbs that went into effect July 2019.

As a result, imports of three key items for the manufacture of displays and semiconductors – photoresist, fluorinated polyimide and hydrogen fluoride – will resume.

The two sides also agreed to closely discuss measures to reinstate each other to their respective whitelist of preferential trading partners.