US Includes Korea in FDPR Exemption Countries... "Reaffirming Cooperation on Export Controls Against Russia" (Comprehensive)

Government Holds High-Level Meeting with US... Agreement Includes FDPR Exemption Countries
Initiates Additional Export Controls... "Will Actively Participate in Sanctions Against Russia"
To Continue Discussions on IPEF... Urges Improvement of Steel Section 232

Quad Leaders Hold Virtual Summit Amid Ukraine Crisis
(Washington AFP=Yonhap News) On the 3rd (local time), U.S. President Joe Biden held a virtual meeting at the White House in Washington DC with the leaders of the Quad regarding Russia's invasion of Ukraine. The meeting included President Biden, Japanese Prime Minister Fumio Kishida, Australian Prime Minister Scott Morrison, and Indian Prime Minister Narendra Modi. The Quad, a consultative group consisting of the United States, Japan, Australia, and India aimed at countering China, agreed during the meeting to establish a humanitarian support mechanism related to the Ukraine war. [Provided by the White House. Advertising and sale prohibited] 2022.3.4
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The United States has decided to include South Korea in the list of countries exempted from the Foreign Direct Product Rule (FDPR). Following this decision, the South Korean government will initiate additional export controls against Russia.

The Ministry of Trade, Industry and Energy announced that Ye Han-gu, the Director-General for Trade Negotiations, met with Don Graves, Deputy Secretary of Commerce of the U.S., and Darling Singh, Deputy Assistant to the President for the National Security Council (NSC) and National Economic Council (NEC), in Washington DC on the 3rd (local time) and reached this agreement.

During the meeting, the U.S. decided to include South Korea as an FDPR-exempt country concerning export controls on Russia. This decision was based on the assessment that South Korea’s implementation of export controls against Russia aligns with the sanction levels of the international community. The FDPR is a measure that prohibits exports of products made in third countries if they are produced using U.S. technology or software (SW). Former U.S. President Donald Trump previously used this rule to pressure China’s Huawei.

The U.S. will publish an official notice including South Korea in the FDPR exemption list within a few days. South Korea plans to raise the level of sanctions to a level similar to that of the U.S. and the international community through additional export control measures against Russia. The government stated that the meeting reaffirmed the strong cooperation between the Korea-U.S. alliance and export controls against Russia.

The government plans to promptly inform companies about the strengthened export control measures through briefings with relevant ministries. Director-General Ye said, “Through this bilateral meeting, we have actively participated in sanctions against Russia as a responsible member of the international community, while also alleviating uncertainties faced by our companies due to the strengthened export control measures.”

Additionally, the government agreed to continue close consultations regarding the Indo-Pacific Economic Framework (IPEF) led by the U.S. According to the Ministry of Trade, Industry and Energy, the U.S. side explained during the meeting that IPEF is being promoted for comprehensive cooperation on new trade issues in Asia, including trade, supply chains, infrastructure, and clean energy. In response, Director-General Ye stated that IPEF should promote future-oriented economic cooperation based on the principles of openness, transparency, and inclusiveness.

Meanwhile, the government urged the U.S. to negotiate improvements to Section 232 of the Trade Expansion Act. Section 232 allows the U.S. to restrict imports or impose high tariffs on imports deemed a threat to national security. Former President Trump, advocating protectionism, imposed a 25% tariff on steel imports from the European Union (EU), Japan, China, and others in 2018 under Section 232. South Korea was exempted from the steel tariff at that time but accepted a quota limiting steel exports to within 70% of the average export volume over the previous three years.

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