1,120 strategic goods likely to be affected by Japan's removal of S. Korea from whitelist
- 5 years ago
日 백색국가 제외 강행...수출의존도 높은 48개, 전체 전략물자 품목 1천여개 영향받나
Tokyo's decision will likely impact Korea's manufacturing industries, as more than one-thousand items are designated as strategic goods by the Japanese government.
We take a closer look into the issue with part 1 of our special series.
Here's Yoon Jung-min.
One-thousand-120 strategic goods are likely to be affected due to the Japan's decision to remove South Korea from its whitelist of countries which receive preferential treatment on trade as its allies for defense and security.
Japanese exporters get comprehensive approval every three years to ship strategic goods to the countries on the whitelist. But they have to apply for case-by-case approval every six months to export such items to non-whitelist countries.
For the countries on the whitelist, the approval takes about a week, but for non-whitelist countries, it will take about 90 days.
Even for non-strategic goods, shipping to countries excluded from the list requires case by case approval,...which is not applied to the whitelist countries.
The items most likely to be affected include those used in chips and displays, automobiles, petrochemicals, machinery, steel and aluminum.
According to the Hyundai Research Institute, 48 items are heavily dependent on Japanese components or equipment, with imports from Tokyo taking more than 90 percent of the total imports of those goods last year.
For example, more than 90 percent of photoresist, laser machines and polishing machines used for making chips come from Japan.
More goods used for producing petrochemicals, machinery and steel are also dependent on Japanese suppliers.
Future industries are also susceptible,...including batteries used in hydrogen cars and non-memory chips.
South Korean companies are likely to look for alternative suppliers or try to make some items on their own, if possible.
The decision to revise the trade law to remove Seoul from the whitelist came at Japan's Cabinet meeting on Friday.
Japan's Emperor Naruhito will announce the revision on August 7th and the law will go into effect on August 28th.
Yoon Jung-min, Arirang News.
Tokyo's decision will likely impact Korea's manufacturing industries, as more than one-thousand items are designated as strategic goods by the Japanese government.
We take a closer look into the issue with part 1 of our special series.
Here's Yoon Jung-min.
One-thousand-120 strategic goods are likely to be affected due to the Japan's decision to remove South Korea from its whitelist of countries which receive preferential treatment on trade as its allies for defense and security.
Japanese exporters get comprehensive approval every three years to ship strategic goods to the countries on the whitelist. But they have to apply for case-by-case approval every six months to export such items to non-whitelist countries.
For the countries on the whitelist, the approval takes about a week, but for non-whitelist countries, it will take about 90 days.
Even for non-strategic goods, shipping to countries excluded from the list requires case by case approval,...which is not applied to the whitelist countries.
The items most likely to be affected include those used in chips and displays, automobiles, petrochemicals, machinery, steel and aluminum.
According to the Hyundai Research Institute, 48 items are heavily dependent on Japanese components or equipment, with imports from Tokyo taking more than 90 percent of the total imports of those goods last year.
For example, more than 90 percent of photoresist, laser machines and polishing machines used for making chips come from Japan.
More goods used for producing petrochemicals, machinery and steel are also dependent on Japanese suppliers.
Future industries are also susceptible,...including batteries used in hydrogen cars and non-memory chips.
South Korean companies are likely to look for alternative suppliers or try to make some items on their own, if possible.
The decision to revise the trade law to remove Seoul from the whitelist came at Japan's Cabinet meeting on Friday.
Japan's Emperor Naruhito will announce the revision on August 7th and the law will go into effect on August 28th.
Yoon Jung-min, Arirang News.