World News | South Korea restores Japan to trade ‘white list’

SEOUL, April 24 (AP) – South Korea formally added Japan back to its list of countries to which it grants preferential trade treatment on Monday, three years after the neighbors downgraded each other’s trade due to a diplomatic spat over a historic feud. trade status.

South Korea’s Trade, Industry and Energy Ministry, announcing the move in a government gazette, also said Seoul would further restrict technology and industrial exports to Russia and its ally Belarus in support of a U.S.-led effort to pressure Moscow over the Ukraine war.

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After years of friction, Seoul and Tokyo are working to mend ties and boost trilateral security cooperation with Washington to counter the threat posed by North Korea. Pyongyang has used the disruption caused by the war to hasten nuclear missile tests.

South Korean officials expect Tokyo to also restore Seoul’s status as a favored trading partner, but the step is expected to take more time under the process of revising Japan’s export regulations.

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In September 2019, South Korea responded to a similar move by Tokyo by removing Japan from its “white list” of countries receiving fast-track trade approval. Japan has also tightened export controls on key chemicals used by South Korean companies to make semiconductors and displays, prompting South Korea to file a complaint with the World Trade Organization.

Seoul has accused Tokyo of weaponizing the trade in retaliation for a South Korean court ruling ordering Japanese companies to pay compensation to South Koreans Japan colonized on the peninsula before the end of World War II.

The 2018 ruling angered Japan, which insisted that all compensation issues had been resolved through a 1965 treaty to normalize relations. Tensions between the U.S. allies began to ease in March, when the government of South Korean President Yoon Suk-yeol, who takes office in May 2022, announced plans to use South Korean funds to compensate forced labor without Japanese contributions.

Yin traveled to Tokyo to meet Japanese Prime Minister Fumio Kishida, and they vowed to rebuild security and economic ties between the two countries.

Yin’s efforts to mend relations with Tokyo have drawn criticism from some victims of forced labor and his political opponents. They called for direct compensation from the Japanese companies that employ these forced laborers. But Yoon defended his decision, saying closer ties with Japan were crucial to addressing a range of regional challenges, not least the growing nuclear threat from North Korea.

South Korea withdrew its WTO complaint against Japan following the Yoon-Kishida summit, as Tokyo simultaneously confirmed the removal of export controls on a range of chemicals deemed critical to South Korea’s technology industry.

Japan’s restrictions cover fluorinated polyimides used in organic light-emitting diode (OLED) screens for TVs and smartphones, as well as photoresists and hydrogen fluoride used to make semiconductors.

With the restoration of Japan’s status, South Korea now offers preferential treatment to 29 countries, including the US, UK and France, for the export of sensitive “strategic” materials that can be used for civilian and military purposes.

South Korea divides its trading partners into two groups when it comes to managing export licenses for sensitive materials. The waiting period for whitelisted countries is usually five days, while other countries are reviewed on a case-by-case basis, which can take up to 15 days.

Announcing its new rules on exports of strategic materials, South Korea’s trade ministry also said the country would place hundreds of industrial products and components under export restrictions to Russia and Belarus starting this week.

Seoul’s controls so far cover 57 items, including items related to electronics and shipbuilding, which authorities have banned from being shipped to Russia and Belarus unless the companies receive special approval. Starting Friday, the list will grow to 798 items, including exports related to construction, machinery, steelmaking, automobiles, semiconductors and advanced computing.

“(We) plan to cooperate with relevant departments to strengthen crackdowns and law enforcement to prevent (restricted items) from entering Russia or Belarus through third countries,” the ministry said in a statement. (Associated Press)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)