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Lee Ho-hyeon, director-general of trade policy for South Korea’s Ministry of Trade, Industry, and Energy (MOTIE), and Yoichi Ida, director-general of the trade control department at Japan’s Ministry of Economy, Trade, and Industry (METI), meet for talks in Tokyo on Dec. 16. (provided by MOTIE)

A bureau director-level policy dialogue lasting over 10 hours was held in Tokyo on Dec. 16 in an attempt to resolve the conflict that erupted between Seoul and Tokyo over Japan’s imposition of stiffer export controls against South Korea last July. It was the first export management policy dialogue held to discuss export controls on strategic items since June 2016.

The policy dialogue, which kicked off at the Ministry of Economy, Trade, and Industry (METI) around 10 am on Monday, continued well past the scheduled endpoint of 5 pm, until 8:18 pm, in a marathon session. The mood during this round of dialogue was more amicable than the rancorous working-level talks between section heads this past July.

When Lee Ho-hyeon, director-general of trade policy for South Korea’s Ministry of Trade, Industry, and Energy (MOTIE), entered the meeting room, Yoichi Ida, director-general of the trade control department at METI, was waiting to greet him. Lee extended a friendly greeting to his counterpart upon entering, and the two shook hands with a courteous smile. During the meeting between section chiefs, also held at the METI this past July, the two sides didn’t even exchange greetings in front of reporters.

South Korean trade representatives meet with their Japanese counterparts in Tokyo on Dec. 16. (provided by MOTIE)

The meeting between director-generals took place in a spacious conference room, capable of seating more than 20 people, with coffee and water provided to those in attendance. Eyebrows had been raised when the section chief meeting was held in a disorderly room, where the chairs hadn’t even been laid out.

This past July, the Japanese government imposed controls on exports of three materials used to manufacture semiconductors and displays in what was effectively payback for a ruling by the South Korean Supreme Court that ordered Japanese companies to compensate victims of forced labor during Japan’s colonial occupation of Korea. Then in August, Japan removed South Korea from its “white list” of trading partners that benefit from a streamlined screening process for dual-use exports. The ostensible rationale the Japanese government provided for those measures is what it describes as the weakness of South Korea’s export management system, including the failure to hold bilateral policy meetings for some time, the inadequacy of “catch all” restrictions on dual-use materials, and a shortage of staff.

Working-level trade talks between South Korea and Japan in Tokyo on July 12. (photo pool)

During the daily press briefing on the morning of Dec. 16, while the meeting between director-generals was underway, Japanese Chief Cabinet Secretary Yoshihide Suga repeated Japan’s basic position. “Japan intends to operate [its export controls] according to a comprehensive assessment of the other country’s export management. This isn’t the sort of matter that can be decided through deliberations with the other country,” he said.

By Cho Ki-weon, Tokyo correspondent, and Kim So-youn, staff reporter

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