Japan Tightening Export Controls on Tech Goods to South Korea

Japan’s Ministry of Economy, Trade and Industry is implementing more restrictions surrounding licensing policies and procedures for exports of certain “controlled items” and technologies to South Korea, the ministry said in a July 1 press release. Japan said its relationship of trust with South Korea “in the field of export control and regulation” has been “significantly undermined.” Japan said it will “apply more stringent procedures over certain controlled items and their relevant technologies” to “ensure appropriate implementation of Japan’s own export control and regulation.” Some “sensitive items” have been exported to South Korea “with inadequate management by companies,” the press release said. The changes will take effect July 4, Japan said.

While the METI announcement did not mention specifics -- beyond saying “exporters shall apply for an individual export license for export of Fluorinated polyimide, Resist, and Hydrogen Fluoride, and their relevant technologies, which may include technology transferred with exports of manufacturing equipment” -- the country plans to increase restrictions on “high-tech materials” used for smartphones and chips, Reuters reported June 30. The controls would slow Japan’s export process “by several months” and impact major South Korean technology companies, including Samsung, SK Hynix and LG Display, the report said. South Korea plans to file a complaint with the World Trade Organization, Reuters reported, citing comments from South Korea’s industry minister.