The Government Pulls Out the GSOMIA Card... Shifts from Defensive to Offensive

[Image source=Yonhap News]

[Asia Economy Reporters Nakgyu Yang, Chulyoung Lim, Jaehee Kwon] The South Korean government has shifted to an active offensive against Japan, which has not withdrawn its unilateral export restrictions for 11 months. Following the resumption of the World Trade Organization (WTO) complaint procedure against Japan, South Korea has also brought up the possibility of terminating the General Security of Military Information Agreement (GSOMIA) between South Korea and Japan again. However, concerns are rising that this issue could rekindle tensions in the South Korea-US alliance, as the US has publicly opposed the termination of GSOMIA.

On the 2nd, the government issued a series of response policies centered on the main ministries leading negotiations between the two countries. After Japan ignored South Korea’s request for a clear stance on the withdrawal of export restrictions by the end of last month, the Ministry of Trade, Industry and Energy opened the offensive first by filing a WTO complaint, followed by the Ministry of Foreign Affairs indicating the possibility of reconsidering the termination of GSOMIA. Kim Incheol, spokesperson for the Ministry of Foreign Affairs, said on the day, “(Regarding the withdrawal of export restrictions) depending on the trend of discussions, (the termination of GSOMIA) is a matter that should be carefully reviewed, and we plan to do so.”

The government’s decision to bring up the GSOMIA card after showing a cautious stance until last month is seen as a kind of confidence considering the situation in Japan. Above all, it is analyzed that the South Korean government has been able to raise its momentum further as Japanese semiconductor companies have suffered irreparable damage due to the export restrictions. The South Korean semiconductor industry has significantly reduced its dependence on Japan due to Japan’s export restrictions and has succeeded in domesticating materials. On the other hand, Japanese companies have sharply declined in performance due to the export restrictions and have raised critical voices against their government, calling it an “unwise measure.” In this regard, the Japanese Nihon Keizai Shimbun pointed out on the 20th of last month that “while Japanese export restrictions have lasted for nearly a year, Korean companies are preparing alternative processes, but only Japanese companies are facing backlash.”

In fact, Stella Chemifa, Japan’s top exporter of hydrogen fluoride, saw its operating profit drop 31.7% year-on-year to 2.47 billion yen (about 27.5 billion KRW) from April last year to March this year. This was due to a 22% decrease in sales of its main product, hydrogen fluoride. Morita Chemical also saw its exports to South Korea decrease by about 30% compared to before the restrictions. The situations of JSR, which mainly exports photoresists, and Sumitomo Chemical, which produces fluorine polyimide, are not much different.

The Japanese government expressed regret while shifting responsibility for South Korea’s anticipated measures but consistently avoided mentioning the GSOMIA termination issue. The Japanese government has treated GSOMIA, export restrictions, and the South Korean Supreme Court’s compensation ruling on forced labor during the Japanese colonial period as separate issues and has avoided the GSOMIA termination issue. Chief Cabinet Secretary Yoshihide Suga said on the day, “We have had serious communication between authorities so far, but this announcement is extremely regrettable,” and added, “We will continue to explain that the review of export control operations announced last July complies with WTO agreements.”

The problem is that the fallout could affect South Korea-US relations. Since the Blue House notified Japan of the GSOMIA termination in August last year, US Defense Secretary Mark Esper and others have publicly expressed opposition. The US strongly opposes the disruption of the trilateral security posture among South Korea, the US, and Japan due to the termination of GSOMIA, especially as talks with North Korea remain stalled. If the US publicly opposes the South Korean government again, there are concerns that the South Korea-US relationship, already strained by disagreements over defense cost-sharing negotiations, could be caught up in another conflict.

GSOMIA is reviewed annually for extension, and if not extended, the other party must be notified three months in advance. Accordingly, if Japan does not lift export restrictions, South Korea must notify the termination of GSOMIA by August.

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