Seoul, July 10 -- South Korean President Moon Jae-in on Wednesday criticized comments by Japanese officials who questioned the credibility of Seoul's sanctions against North Korea while justifying Tokyo's stricter controls on high-tech exports to South Korea.

The issue has become a full-blown diplomatic dispute between the neighboring U.S. allies.

In a meeting with South Korean business leaders at Seoul's presidential palace, Moon said his government was committed to resolving the matter diplomatically and urged Japan to refrain from pushing the situation to a "dead-end street."

Tokyo last week tightened the approval process for Japanese shipments of photoresists and other sensitive materials to South Korean companies, which need the c...