South Korea braces for more export curbs as Moon Jae-in warns of ‘greater damage’ to Japan’s economy
- Tokyo could next week remove Seoul from its ‘white list’ of trusted trade partners and impose curbs on a further 40 categories of products
- The escalating trade spat between the closely intertwined Asian neighbours has also raised concerns over a disruption in the global supply chain
Officials from the two countries made no progress in talks last Friday, leading Japan’s Ministry of Economy, Trade and Industry to suggest it could remove South Korea from the list of 27 preferred trading partners, which would require Japanese firms to obtain additional export verifications before selling to South Korean buyers. The Japanese government’s decision is expected to be announced on July 24 and would take effect 21 days later following a review process.
The 40 categories of products include isostatic presses, frequency changers, pressure transducers, titanium alloys, carbon fibre, vacuum pumps, generators, gyroscopes, crane trucks and milling machines.
Within those broad categories, the Korea Strategic Trade Institute estimated about 1,100 specific items could be subject to the new restrictions, according to the Korea Times.
South Korean President Moon Jae-in on Monday struck a defiant tone, warning Japan it was “breaking the frameworks of Korea-Japan economic cooperation that has been built upon mutual reliance and reciprocal benefits over the past half-century”.
