{"id":2201509,"date":"2023-06-28T08:00:14","date_gmt":"2023-06-27T23:00:14","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201509"},"modified":"2023-06-27T15:01:52","modified_gmt":"2023-06-27T06:01:52","slug":"japan-lifts-export-controls-on-south-korea-revives-white-list-status","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/06\/japan-lifts-export-controls-on-south-korea-revives-white-list-status\/","title":{"rendered":"Japan lifts export controls on South Korea, revives \u201cwhite list\u201d status"},"content":{"rendered":"
Japan has <\/span>announced<\/span><\/a> its decision to reinstate South Korea on its \u201cwhite list\u201d 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 \u201cGroup A,\u201d or white-listed nation status, offering Seoul preferential treatment in exports. Tokyo <\/span>removed<\/span><\/a> 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 <\/span>rulings<\/span><\/a> requiring Japanese firms to compensate Korean forced labor victims from the period of Japanese colonial rule. South Korea <\/span>reinstated<\/span><\/a> Japan back on its \u201cwhite list\u201d of trusted trading partners in April.<\/span><\/p>\n Seoul and Tokyo <\/span>committed<\/span><\/a> to reinstating each other on their respective \u201cwhite lists\u201d in March after South Korea revealed <\/span>unilateral plans<\/span><\/a> to compensate Korean victims of Japanese forced labor without seeking contributions from Japan. This commitment was reinforced by an <\/span>agreement<\/span><\/a> between South Korean President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida to work together to improve bilateral ties.<\/span><\/p>\n Dear readers,<\/span><\/i><\/p>\n At KOREA PRO, we are committed to providing engaging and informative content tailored to our discerning audience. Recognizing the significance of your perspectives in enriching our offerings, we cordially extend an invitation for your participation in a brief <\/span><\/i>5-minute survey<\/span><\/i><\/a>. This opportunity allows us to capture your invaluable feedback and insights, which we greatly appreciate and consider integral to our ongoing commitment to service excellence.<\/span><\/i><\/p>\n Why It Matters<\/b><\/p>\n The reinstatement of South Korea to Japan\u2019s \u201cwhite list\u201d of trusted trading partners is a promising development for bilateral trade, especially for the semiconductor sector. The 2019 removal of South Korea from this list resulted in restrictions on the export of <\/span>three critical materials<\/span><\/a> used in semiconductor manufacturing \u2014 hydrogen fluoride, fluorinated polyimide, and photoresist. While South Korean chip manufacturers have worked to mitigate this impact by <\/span>diversifying import lines<\/span><\/a> and <\/span>bolstering domestic production<\/span><\/a>, the decision by Japan to return South Korea to its \u201cwhite list\u201d will likely be welcomed by Korean chip companies.<\/span><\/p>\n This reinstatement also suggests a potential improvement in the geopolitical relationship between Seoul and Tokyo, potentially paving the way for bolstered security cooperation. Over recent years, tensions have been high between the two East Asian countries due to historical and territorial disputes. The decision to reinstate South Korea to the \u201cwhite list\u201d could assist in easing these diplomatic tensions, fostering increased collaboration on shared security threats and regional stability.<\/span><\/p>\n However, there are still significant reservations within South Korea regarding the improvement of relations with Japan. South Korean opposition parties have expressed concerns on various issues, including the planned <\/span>discharge of treated water<\/span><\/a> from the Fukushima nuclear plant. While the Yoon administration is likely to continue its efforts to improve relations with Japan, <\/span>public sentiment<\/span><\/a> is reportedly against Japan\u2019s plan to release Fukushima\u2019s treated wastewater into the ocean. If the main opposition Democratic Party can leverage this sentiment to maintain their majority in the National Assembly in the upcoming parliamentary elections or reclaim the presidency in 2027, these improving ties could potentially be reversed.<\/span><\/p>\n