Yonhap reported on September 18th that the Ministry of industry and Commerce resources of Korea formally announced the implementation of the "strategic goods import and export notice amendment" on the same day, and removed Japan from the export "white list". This is another measure taken after Korea filed a complaint against Japan's trade restriction issue to the World Trade Organization (WTO).
(Yonhap reported screenshots)
According to the report, the revised Trade Classification of South Korea's trade partners is divided into two categories: Class A, 1, 2, and B, from the existing category A and B, and the countries with Class A that enjoy the simplification of export procedures are divided into 1 categories: the group with the same treatment and the 2 class with reduced treatment. Japan is listed in the 2 category of the new class A, the only country in the original 29 countries.
The report also states that the export control of the 2 class a countries is roughly the same as that of class B countries. The difference is to exempt from the intermediary trade examination of some materials and strategic materials required for individual declarations. As a result, when Korean enterprises export strategic goods to Japan, the declaration and approval process takes about 15 days, far exceeding the current 5 days. At the same time, enterprises must apply for approval one by one, and each required documents submitted to the government should be increased from 3 to 5.
The Ministry of industry and Commerce resources of Korea said that the revision is aimed at strengthening export management and improving the system, aiming at separate control of export control system that runs counter to the basic principles of international export and control system of international peace and regional security and countries that are difficult to carry out international cooperation.
The Ministry also said that it would provide timely export licenses for private trade with Japan, and allocate full-time censors to SMEs to minimize the time of examination and approval and reduce the impact of amendments on South Korean enterprises. The Ministry of industry will also pay close attention to the problems that export enterprises may encounter and make full use of the transparent export control system to provide advisory services to relevant enterprises.
According to previous media reports, after the Korean court sentenced the World War II workers to Japan's claim for compensation, the relationship between Japan and South Korea deteriorated, and in August 7th, it announced that the three semiconductor raw materials exported to South Korea should be examined and removed from South Korea's "white list" which could enjoy trade convenience. The new law was formally implemented in August 28th and is valid for 3 years. In August 12th, the Korean government decided to move Japan out of trade.