Government "Maintain Export Control Measures Until Abe's Successor Is Elected"

Regulatory Response to Japan's Top 3 Items and WTO Litigation Procedures
Trade Policy Framework Remains Unchanged
Experts Say "Prioritize Korea-Japan Fast Track"

Japanese Prime Minister Shinzo Abe announcing his resignation at a press conference held at the Prime Minister's Official Residence in Tokyo on the 28th. (Photo by AP Yonhap News)

With Japanese Prime Minister Shinzo Abe announcing his intention to resign, our government has clearly stated that it will "maintain the existing approach to export regulations and trade policies for the time being." Amid the ongoing COVID-19 pandemic, voices are emerging that the 'Korea-Japan Business Fast-Track Special Entry' should be prioritized to ease the stalled Korea-Japan relations.

According to the Ministry of Trade, Industry and Energy on the 31st, the government plans not to change the basic framework of trade policies, including the World Trade Organization (WTO) complaint procedure and the organization of the Trade Security Policy Office, in response to Japan's export restrictions on three major items (EUV photoresist, fluorinated polyimide, and fluorinated hydrogen). The government intends to carefully observe the political situations of both countries, including the resolution of the forced labor issue, after the next Japanese prime minister is elected. A ministry official stated, "First, we need to see who will succeed Prime Minister Abe and check the internal reactions in Japan before adopting an appropriate response strategy."

Experts have suggested that consultations on the Korea-Japan Business Fast-Track should precede other measures. Professor Jeong In-kyo of Inha University's Department of International Trade said, "With Korea-Japan relations at a standstill, the change in Japanese political leadership should be leveraged to improve bilateral relations. Removing obstacles to business activities caused by COVID-19 is an area where both countries can relatively easily find common ground, so fast-track consultations should be advanced."

There is also a view that even if Yoshihide Suga, a pro-Abe figure and Chief Cabinet Secretary, becomes the next prime minister, Korea-Japan trade relations might improve compared to Abe's tenure. In Japan, both COVID-19 prevention and trade are handled by Minister of Economic Revitalization Yasutoshi Nishimura (ministerial level), and since Suga is considered less extreme right-wing than Abe, it is analyzed that Minister Nishimura will not be able to ignore this.

Professor Hosaka Yuji of Sejong University explained, "If Suga, who is regarded as more rational than Prime Minister Abe, becomes the next prime minister, Minister Nishimura may adopt a more Korea-friendly stance than now." He added, "Although it may take some time, since there is a possibility that Korea-Japan conflicts will be resolved, it would be good for Korean trade authorities to actively prepare the fast-track."

The government also intends to seek maximum cooperation with the Japanese government regarding COVID-19 responses, including the business fast-track. So far, fast-track procedures have been established with China, Vietnam, Indonesia, and the United Arab Emirates (UAE).

Discussions with Japan began this month but have not yet reached a conclusion. A ministry official said, "While normalizing cooperation and exchanges between companies of both countries is necessary, we need to be cautious due to the current quarantine situation. Korea-Japan cooperation must continue, especially in the economic sector, which should be pursued continuously regardless of changes in Japan's political leadership."

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