The Japanese government passed a revised decree at a cabinet meeting on June 27, redesignating South Korea as a “Group A” (original white list country) that enjoys preferential export treatment. Japan tightened restrictions on exports to South Korea in the summer of 2019, only to remove them four years later.
Japan will amend the Foreign Exchange and Foreign Trade Law (Foreign Exchange Law) Decree, promulgated on June 30, 2023, and implemented on July 21.
Chief Cabinet Secretary Hirokazu Matsuno said at a press conference on Tuesday that the two sides will continue to have a comprehensive policy dialogue on the system and its use.
Economy, Trade and Industry Minister Yasutoshi Nishimura said on the 27th, we will demand appropriate measures if there are problems such as improper exports to third countries.
Japan downgraded South Korea to a “Group B” country in August 2019. Japanese companies have to bear a certain burden when exporting products to Korea. There are views that this has had a great impact on small and medium-sized enterprises with limited manpower.
At that time, the ministry of Economy, Trade and Industry cited a lack of personnel in charge of inspection and the partial failure to introduce the inspection system when South Korea exports parts and materials that can be diverted for military use. After South Korea’s return to “Group A”, although the internationally stipulated “control list” category requires an export license, but other categories in principle no longer require an export license.