Japan ratchets up export controls against South Korea

   Japan’s Ministry of Economy, Trade and Industry (METI) has updated its licensing policies and procedures for exports and transfer of controlled items to South Korea.
   The Japanese ministry said it’s become increasingly concerned that South Korea’s export controls are insufficient for certain “sensitive items,” adding it will “apply more stringent procedures over certain controlled items and their relevant technologies.”
   On July 1, the ministry immediately removed South Korea from its so-called list of “white countries” — countries with recognized export compliance oversight. METI also has begun taking public comments related to its removal of South Korea from this list. 
   In addition, as of July 4, Japanese exporters to South Korea must apply for individual export licenses for shipments of fluorinated polyimide, resist and hydrogen fluoride and related technologies. The Japanese ministry said it will no longer issue bulk export licenses for those three items to South Korea.
   “It is extremely important that export compliance officers (ECOs) of U.S. multinational firms that have affiliates (branch, subsidiaries or manufacturing) in Japan and export ‘sensitive items’ or technology to South Korea from Japan be cognizant of these changes and ensure that their global export compliance program is adjusted to accommodate these new procedures,” Paul DiVecchio, a 40-year export compliance consultant based in Boston, told American Shipper.
   According to Bloomberg, Moon Jae-in, South Korea’s president, called on Japan this week to drop the new export restrictions and warned that his country will “take responsive measures” if its industries are injured by Japan’s export controls.