Japan has announced its decision to reinstate South Korea on its “white list” of trusted trading partners, a move aimed at enhancing their bilateral economic relationship. This reinstatement, scheduled to take effect on July 21, elevates South Korea to a “Group A,” or white-listed nation status, offering Seoul preferential treatment in exports. Tokyo removed Seoul from its white list in 2019, imposing export controls on three essential materials for semiconductor manufacturing, ostensibly in response to South Korean Supreme Court rulings requiring Japanese firms to compensate Korean forced labor victims from the period of Japanese colonial rule. South Korea reinstated Japan back on its “white list” of trusted trading partners in April.

Seoul and Tokyo committed to reinstating each other on their respective “white lists” in March after South Korea revealed unilateral plans to compensate Korean victims of Japanese forced labor without seeking contributions from Japan. This commitment was reinforced by an agreement between South Korean President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida to work together to improve bilateral ties.