Japan Allows Certain Exports to South Korea, but Says Tighter Restrictions Could Be Imposed

Japan is approving exports for a semiconductor manufacturing material to South Korea days after removing the country from its list of trusted trading partners, stressing that South Korea’s removal from the list was not an export embargo, Japan’s trade minister Hiroshige Seko said during an Aug. 8 press conference. But Seko also said Japan will not hesitate to increase export restrictions on South Korea if it finds more “specific inappropriate cases” of South Korea’s export control regime, according to an unofficial translation of the press conference.

The press conference was one of several held by Seko since Japan announced stricter export controls on South Korea and removed the country from its so-called “whitelist” (see 1908020023). Japan’s move was aimed at tightening restrictions on exports of certain chemicals used to make computer chips and other high-tech goods, as well as about 1,000 other products.

Although Japan’s restrictions increased tensions with South Korea and embroiled the two in a trade dispute, Japan said its decision to approve the semiconductor exports to South Korea undercuts criticism from the Korean government that the restrictions were essentially a trade embargo. Seko called the criticism “unjust.”

“As I have repeatedly stated, this measure we have taken is not an embargo, and the Japanese government does not operate arbitrarily for legitimate transactions,” Seko said. “It shows that we have given permission.”

The exports were permitted because there were no national security risks, Seko said. But the trade minister added that Japan is committed to “fulfilling its responsibility to maintain international peace and security” and called on Japanese companies to “accurately” confirm the end-use of their exports to South Korea. “We will continue to conduct strict examinations on export license applications and take strict measures to avoid cases such as detour trade or unintended use,” Seko said.

If Japan finds more causes for concern in its exports to South Korea, it will introduce “thorough measures to prevent recurrence,” Seko said, including revoking general export licenses and instead making certain exports subject to “individual permission applications.”

Japan will “continue to collaborate with major countries” to ensure its export control list “is sufficient to respond to security concerns,” Seko said. The U.S. said it wants to work with Japan and Korea and has expressed willingness to mediate in any potential negotiations (see 1908070072). Japan said it has “no intention to change anything about the partnership with South Korea” and that the two sides should “cooperate.”

South Korea Prime Minister Lee Nak-yeon said his country "has confirmed the permit for export of resist,” one of the three chemicals subject to Japan’s export restrictions, according to an Aug. 8 report from Nikkei Asian Review.