Following Japan’s decision on Friday to delist South Korea from its whitelist of trusted trade partners, domestic companies importing 857 items including hi-tech materials will come under tighter rules for export approval.
The items categorized as “nonsensitive” in the list of Japan’s strategic materials include precision machine tools and fine chemical products, such as functional films and adhesives, as well as carbon fiber which is used to produce aircrafts and automobiles.
Market insiders voiced concern that Japan’s export curbs, which started off in the semiconductor and display sectors, will negatively impact the local businesses, as they will now target the auto, battery and smartphone industries.
Civic group members stage a protest in front of the Japanese Consulate in Busan on Friday, following Japan’s decision to delist South Korea from its whitelist of trusted trade partners. (Yonhap)
In 2004, Korea was added to the whitelist of countries that enjoy preference in customs clearance from Japan. Countries on the list only need separate approval on 263 highly sensitive items such as those related to missile and nuclear materials.
If the law is passed and goes into effect by the end of this month, Korea will become the first country to be removed from Japan’s list.
According to Hyundai Research Institute, Korea imported 4,227 items from Japan last year. It relied on Japanese imports for more than 90 percent of 48 items.
By Kim Da-sol (email@example.com