Samsung Nano City staffs 40,000 employees and is the site where Samsung semiconductor chips are made.

South Korea said on Wednesday a Japanese plan to remove South Korea from a Japanese list of countries that face minimum trade restrictions would impose tougher conditions without legitimate grounds and consultation.

Japan's plan to remove South Korea from the so-called white list was a very grave matter that undermined the economic and security partnership between the two countries, South Korea's industry ministry said in a statement.

It asked Japan to scrap its plan.

Japan threatened last week to drop South Korea from the white list of countries that face minimum trade restrictions under a trade control law. That would require Japanese exporters to seek a licence for items that could be used in some weapons-related applications.

On Japan's white list are 27 countries, from Germany to South Korea, Britain and the United States.