hankyoreh

Despite concerns from some quarters that South Korea and Japan are heading into a full-blown tit-for-tat confrontation, the South Korean government decided to remove Japan from its white list (countries that enjoy streamlined export procedures for strategic materials). The strong-armed measure is aimed at both pressuring Japan following that country’s hesitation due to international criticism and to open the door for negotiations to find a bilateral resolution. Analysts also suggest that South Korea has shown that it can always respond to Japan again by pulling out of the General Security of Military Information Agreement (GSOMIA).

Several South Korean government officials emphasized that the revised act on the export and import of strategic materials announced on Aug. 12 is not a response to Japan’s strengthening of export controls toward South Korea. Trade Minister Sung Yun-mo said that South Korea cannot work closely with countries that have not run their export control systems in line with international export control principles or that continue to conduct “inappropriate trade practices.” A Blue House official also said that the South Korean government has simply judged whether or not Japan is conducting its trade practices in line with international export control principles and that the measure is not aimed at responding to Japan’s measures. Rather, this official emphasized, South Korea has slightly “readjusted” the act on the export and import of strategic materials.

Ultimately, South Korean government officials appear concerned that South Korea will face criticism from the international community if the revised act is deemed a “retaliatory” measure against the Japanese. The World Trade Organization (WTO) prohibits retaliatory trade measures, and South Korea is now preparing a suit against Japan for breaking that very rule. Park Tae-sung, deputy minister of the Ministry of Trade, Industry, and Energy's International Trade and Investment Office, told the Hankyoreh, “We don’t believe that [this revised act] will negatively impact the WTO suit in the future because the act was legally changed within the framework of South Korean and international law.”

The South Korean government is providing vague explanations for the reasoning behind changing the act. Officials say that even though South Korea is part of four major multilateral export control regimes, including the Wassenaar Arrangement, there are still countries that conduct trade practices that fail to meet international export control principles and this situation has necessitated a change in the act. Park Tae-sung says that a country party to these four major regimes can be removed from a white list (moved from Region A to Region A2) for the following reasons: a country fails to follow the principle protecting normal private transactions; a country does not follow international agreements recommending the exchange of information between countries; or, a country conducts inappropriate trade practices.

Reflecting this, South Korea has removed Japan from its white list for the following reasons: Japan put the entire semiconductor industry in danger by suddenly requiring “individual export permission” for three semiconductor materials, including hydrogen fluoride; Japan did not attempt to hold consultations at the ministry head level on the import and export of strategic materials with South Korea; and, finally, South Korea’s long-held accusation that Japanese strategic materials have flowed into North Korea. Choi Jae-sung, a Democratic Party lawmaker heading the Japanese Economic Inquiry Measures Committee, has said that Japan failed to effectively control strategic materials, adding, “A UN report said that strategic materials leaked from Japan have been used in weapons or industries that support weaponry.”

Now the ball is in Japan’s court. Sung has stated that the revised act will be implemented in September after canvassing public opinion for 20 days, reiterating that South Korea will be ready to respond to any Japanese government requests for talks during that period. The deadline to extend the GSOMIA is Aug. 24, which is when the end of the period for canvassing public opinion. Japan’s revised Export Trade Control Order that removes South Korea from its white list will go into effect only four days later, on Aug. 28. A high-ranking official in South Korea’s Ministry of Defense told the Hankyoreh, “The US and Japan want GSOMIA to be extended so it’s now up to South Korea to make a choice” and that “[The government] is comprehensively reviewing what choice will be most beneficial to the national interest.” In short, South Korea could use its exit from GSOMIA as another, and particularly potent, weapon to pressure Japan.

The strengthening of controls in tourism, food, and waste toward Japan announced by Finance Minister Hong Nam-ki is also on the table. On Aug. 8, the Ministry of Environment tightened radioactivity testing during customs clearance of coal ash imported from Japan. Kim Sang-jo, Blue House policy director, said during a recent radio talk show, “The situation today is - to borrow from economic game theory - a strategy game and a game of repetition,” adding, “My [South Korea’s] own strategy changes depending on what kind of response the other side makes. This back-and-forth is then repeated several times.”

In short, South Korea will adjust its strategic response and the level of that response depending on changes in the situation with Japan. An opposition party representative told the Hankyoreh that the removal of Japan from South Korea’s white list shows that South Korea has the willingness to use a wide range of options to bring about change in Japan’s attitude.

By Choi Ha-yan, Lee Wan, and Seong Yeon-cheol, staff reporters, and Yoo Kang-moon, senior staff writer

Please direct comments or questions to [english@hani.co.kr]