Government: "Japan, respond with export regulation resolution plan by end of May... Not a final ultimatum but a request" (Comprehensive)

"Japan's Demand to 'Strengthen Legal Grounds for Catch-All Controls on Conventional Weapons, Export Organization, and Export Personnel' Met"
"No Reason to Hesitate in Restoring Export Regulation Measures"
"Cooperation Between the Two Countries, Including COVID-19, Has Boundless Potential"
"Japan Also Agrees on the Need to Resolve Export Controls... Only Differences in Method, Speed, and Direction"
"Difficult to Reveal Plan B if Japan Does Not Respond or Refuses... Will Respond After Assessing the Situation"

Lee Ho-hyun, Director General for Trade Policy, Ministry of Trade, Industry and Energy. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] "Considering that the three reasons Japan cited for suspending Korea-Japan policy dialogue?export regulations, catch-all control on conventional weapons, and insufficient export control organization and personnel?have all been resolved and that there is no issue with exports to Korea, it can be said that the Japanese government has met all the necessary and sufficient conditions to address the current issues. There is no reason to hesitate in restoring the strengthened export control measures to their original state."

Korea has urged Japan to present solutions by the end of this month regarding the three regulated items?EUV resist, fluorinated polyimide, and hydrogen fluoride?and the whitelist (countries favored in export screening for security reasons). Since Korea has fulfilled all the conditions Japan demanded, such as catch-all control on conventional weapons and reinforcement of export control organization and personnel, Japan is also called upon to express its willingness to restore export regulations to their previous state.

Lee Hohyun, Director-General for Trade Policy at the Ministry of Trade, Industry and Energy, held a briefing at the Government Complex Sejong on the 12th, strongly urging Japan to resolve the export regulations. Although the Ministry of Trade, Industry and Energy and Japan’s Ministry of Economy, Trade and Industry have held official and unofficial meetings at the director and division chief levels over the past six months since agreeing to resume Korea-Japan director-level policy dialogue on November 22 last year, Japan has not taken any measures to withdraw the export regulations.

Source: Ministry of Trade, Industry and Energy

Director-General Lee emphasized that since Korea has fulfilled all the requirements Japan demanded?such as establishing legal grounds for catch-all control on conventional weapons, reorganizing the export control organization, and reinforcing export control personnel?Japan should also show a clearly changed attitude.

He said, "Despite Korea’s catch-all control operating normally and effectively, the amendment to the Foreign Trade Act was completed on March 18 and is scheduled to be enforced on the 19th of next month."

He explained, "Regarding the export control organization and personnel, as of the 6th of this month, the dedicated trade security organization within the Ministry of Trade, Industry and Energy was expanded and reorganized from the division-level 'Trade Security Division' to the bureau-level 'Trade Security Policy Office.'"

He added, "Not only has the export control review personnel been significantly expanded, but trade security tasks such as strategic materials and prevention of technology leakage have been unified, and expertise has been further strengthened."

President Moon Jae-in visited the Kolon Industries Gumi plant in Gumi-si, Gyeongbuk, a factory producing fluorinated polyimide, one of Japan's three major regulated items, on the 1st of last month, and was seen looking at fluorinated polyimide film. (Photo by Yonhap News)

Director-General Lee stated that the three items, which were switched from general licenses to individual licenses by the Japanese government on July 4 last year, have accumulated sufficient sound export transaction records over more than ten months of actual operation. He mentioned that some items are allowed under specific general licenses, and there have been no issues with exports to Korea. He judged that it is a situation where transitioning from individual licenses back to general licenses would not be problematic, and emphasized that Japan should make a decision to minimize corporate uncertainty.

He said, "Moreover, as it approaches one year since the Japanese government announced strengthened export control measures against Korea on July 1 last year, the resolution of the current issues can no longer be delayed." He added, "The Korean government urges the Japanese government to clarify its specific stance on solutions regarding the three items and the whitelist. Considering the emergency situation caused by the novel coronavirus infection (COVID-19), we request that the Japanese government respond by the end of this month."

Director-General Lee made it clear that this request is not a 'final ultimatum.' Rather, it is a strong call to resolve the issue to reduce corporate uncertainty. He explained, "I will not call this a final ultimatum here. I hope it will be understood as a strong urging for Japan to actively engage in resolving the issue since the time has come."

Photo by AFP Yonhap News

He said that cooperation between the two countries, including in response to COVID-19, is boundless. He judged that traditionally, economic relations between Korean and Japanese companies have been quite well established. He also mentioned that they are communicating sufficiently through official and unofficial channels with the Japanese side, and since Japan also recognizes the need to resolve export regulations, he expects a positive response.

However, when asked whether the issue should be resolved through a two-track approach alongside diplomatic issues such as forced labor, he clearly stated that "only export control issues are being addressed."

He explained, "This is a dialogue between the export control authorities of Korea’s Ministry of Trade, Industry and Energy and Japan’s Ministry of Economy, Trade and Industry to resolve export control issues. Of course, we communicate with related ministries, but the export control authorities are focusing on export control issues."

Photo by Yonhap News

He did not mention the 'Plan B' prepared in case Japan remains unresponsive or refuses by the end of this month. He also did not provide specific answers regarding the conflict over the World Trade Organization (WTO) complaint.

Director-General Lee said, "It is difficult to give a precise answer at this time, but since Japan has the will to resolve the issue, I believe they will respond positively. We will comprehensively assess various situations and respond accordingly in the future."

This content was produced with the assistance of AI translation services.