On Monday, South Korea officially reinstated Japan to its list of nations that it treats preferentially in trade, three years after the neighbours demoted one another’s trading status as a result of a diplomatic spat fueled by old resentments.
To assist the US-led pressure campaign against Moscow for the crisis in Ukraine, the Ministry of Trade, Industry, and Energy of South Korea, which announced the action in a government gazette, also stated Seoul would further limit technology and industrial exports to Russia and its ally Belarus.
In an effort to combat the danger presented by North Korea, Seoul and Tokyo are attempting to mend fences after years of tension. They are also tightening their three-way security cooperation with Washington. Pyongyang has accelerated the testing of nuclear-capable missiles by taking advantage of the war’s diversions.
On the basis of the processes to change Japan’s export laws, South Korean officials anticipate Tokyo will also reinstate Seoul as a preferred trading partner, but they anticipate that move to take more time.
In response to Tokyo’s similar action, South Korea removed Japan from its “white list” of nations eligible for expedited trade permits in September 2019. South Korea complained to the World Trade Organisation after Japan increased export restrictions on crucial chemicals used by South Korean businesses to produce semiconductors and screens.
Tokyo was accused by Seoul of using commerce as a weapon in retaliation for South Korean court orders that required Japanese businesses to compensate South Koreans who were forced into slavery prior to the conclusion of World War II when Japan colonised the Korean Peninsula.
The 2018 judgements infuriated Japan, which maintains that a 1965 treaty that normalised ties resolved all compensation-related disputes. When the administration of South Korea’s President Yoon Suk Yeol, who took office in May 2022, revealed intentions to utilise South Korean finances to recompense the forced labourers without needing Japanese contributions, relations between the US Allies started to warm up in March.
Yoon visited Tokyo to meet with Japanese Prime Minister Fumio Kishida, and the two men agreed to reestablish their nations’ economic and security relations.
Yoon’s efforts to repair relations with Tokyo have drawn criticism from both his political enemies and from some victims of forced work. They have demanded that the Japanese businesses who used the forced employees pay them directly. Yoon, though, has defended his choice, saying that better relations with Japan are necessary for addressing a number of regional issues, including North Korea’s rising nuclear threat.
Following the Yoon-Kishida meeting, South Korea abandoned its WTO case against Japan as Tokyo announced it has lifted export restrictions on a group of chemicals deemed essential to the country’s technological sector.
Fluorinated polyimides, which are used in organic light-emitting diode (OLED) screens for TVs and smartphones, as well as photoresist and hydrogen fluoride, which are used to make semiconductors, were all included by the Japanese limitations.
Since Japan’s status has been restored, South Korea now gives 29 nations, including the US, UK, and France, preference when it comes to exports of sensitive “strategic” resources that may be used for both civilian and military objectives.
In order to manage the authorisation of the export of sensitive commodities, South Korea classifies its trading partners into two categories. White-list countries typically have a waiting time of five days, while other countries must undergo case-by-case evaluations, which may take up to 15 days.
The South Korean trade ministry also said that this week will see the start of the country’s export restrictions on Russia and Belarus, which would affect hundreds of industrial items and components.
Seoul has so far implemented restrictions on 57 products, including those used in shipbuilding and electronics, and has forbidden enterprises from shipping these products to Russia and Belarus unless they have received special permission. Starting on Friday, there will be 798 items on the list, including exports of sophisticated computers, equipment, steelmaking, autos, semiconductors, and construction.
“(We) plan to work with relevant ministries to strengthen crackdowns and enforcement to prevent (the restricted items) from reaching Russia or Belarus through third countries,” the ministry said in a statement.
