South Korea's Retaliation Against Japan Will Have Little Impact, Japanese Minister Says

Japan is unsure about the details of South Korea’s decision to remove Japan’s preferential trade status, a Japanese official said, but thinks the move won’t have much of an impact.

Japan’s Economy, Trade and Industry Minister Hiroshige Seko said Aug. 15 that Japan is “currently requesting a detailed explanation” from South Korea about the move because is unsure exactly what it means. But the country thinks the move won’t be of much consequence.

“I think it is necessary to scrutinize it, but as long as I look at the items that Japan imports from South Korea, I think that the impact will be small,” Seko said during a press conference, according to an unofficial translation of a transcript.

Seko said the move has left Japanese officials with questions. “I don't know the details of the contents, so the Japanese government wants to refrain from answering with any precautions about the future response,” he said.

South Korea announced plans to remove Japan from its so-called white list of trusted trading partners days after Japan made a similar announcement (see 1908120036). The two countries have been locked in a trade dispute since July 1, when Japan announced tighter export restrictions to South Korea on chemicals needed to make certain high-tech goods such as computer chips.

In a nationally televised speech on Aug. 15, South Korean President Moon Jae-in said he wants to talk with Japan and wants to end the dispute, according to the Associated Press. “If Japan better late than never chooses the path of dialogue and cooperation, we will gladly join hands,” he said, according to the AP. The two sides have not met to discuss export control issues for the last three years (see 1908080039).

During the press conference, Seko stressed that Japan’s restrictions on South Korea were not an embargo and are “being carried out as an export control measure.” Seko said the Japanese government might talk about “a decision to reopen the policy dialogue” with South Korea “about export control,” but did not go into further details. “We are not going to discuss this matter at all, and we think that we will ask for explanations on the Korean measures,” Seko said.