President Moon Jae-in speaks about Japan's export restriction to South Korea at Cheong Wa Dae on Monday. He issued a strong warning message to Japan on Monday for its continued economic pressure on South Korea, while reaffirming a priority on a diplomatic resolution to the latest stand-off between the neighbors. Yonhap

President Moon Jae-in issued a strong warning message to Japan on Monday for its continued economic pressure on South Korea, while reaffirming a priority on a diplomatic resolution to the latest stand-off between the neighbors.

He pointed out that Tokyo's tougher export restrictions, which target firms here, are tantamount to seeking to block the growth of South Korea's economy at a time when it's seeking to leap forward "by a notch."

"If it's what Japan intends to be, it will never succeed," Moon said during a weekly meeting with his senior Cheong Wa Dae aides.

The president bristled at Japan's accusation that some dual-use materials may be smuggled out of South Korea, calling the claim a "grave challenge" to the South Korean government that's making all-out efforts for improved inter-Korean ties and peace on the peninsula "within the framework" of U.N. sanctions.

He emphasized that Seoul is abiding faithfully by major international export control rules and U.N. Security Council resolutions.

He stressed South Korean people will again overcome the current trouble from Japan's measure, as they did with a number of previous difficulties with their "united power."

Rather, South Korean firms will lose confidence in partnerships with Japan and opt to diversify the supply route of necessary materials or localize related production, Moon added.

"I warn in advance that the Japanese economy will suffer bigger damage in the end," he said.

His message represents the government's resolve not to succumb to Japan's trade-using pressure.