Caution Urged on Deferred GSOMIA Termination Notice... Government Resumes Diplomatic Strategy Adjustment Meetings
[Asia Economy Reporter Lim Cheol-young] The deadline (31st) for Japan to respond to South Korea's demand regarding the lifting of export restrictions unilaterally imposed last July is approaching. Due to the complex entanglement of disputes surrounding the South Korean Supreme Court's forced labor ruling, the Korea-Japan General Security of Military Information Agreement (GSOMIA), and the World Trade Organization (WTO) complaints, expectations for a progressive change in Japan's stance are low.
The South Korean government is reportedly considering how to utilize cards such as resuming the suspended or deferred WTO complaint procedures and the notification of GSOMIA termination if Japan does not announce its position on lifting export restrictions by the 31st. On November 22 last year, the government suspended the WTO complaint procedure and postponed the GSOMIA termination notification by one day to discuss export restrictions with Japan.
A government official explained, "The WTO complaint directly linked to export restrictions is expected to be addressed first," adding, "Regarding the GSOMIA termination suspension, the government still maintains the position that it can terminate the agreement at any time."
Although the response deadline is near, the Japanese government has shown no significant movement. Coincidentally, on the 26th, Japanese media reported the arrest of three individuals, including the representative of a Japanese chemical machinery manufacturer, for illegally exporting 'spray dryers'?strategic materials?to South Korea, violating foreign exchange and foreign trade laws. These items have been listed under export trade control regulations by Japan's Ministry of Economy, Trade and Industry since 2013.
Japan's export restrictions are being seen as self-defeating. This is the result of South Korean companies successfully finding alternatives in response to Japan's tightened export controls. Samsung Electronics, which holds the world's number one market share in memory semiconductors, uses hydrogen fluoride produced by domestic companies in some processes.
According to the Nihon Keizai Shimbun, Japan's hydrogen fluoride producer Stella Kyowa saw its net profit decrease by 18% compared to 2018. Shipments of high-purity hydrogen fluoride used in semiconductor manufacturing processes dropped by 30%. Morita Chemical Industries resumed exports in January this year, but sales to South Korea decreased by 30% compared to before the export restrictions.
Meanwhile, on the 26th, the Japanese government extended the stringent entry restrictions on arrivals from South Korea, which were set to expire at the end of this month, until June. Previously, the two countries had discussed easing restrictions on essential personnel entry through several non-face-to-face meetings. A Ministry of Foreign Affairs official commented, "Considering South Korea's quarantine situation, we regret Japan's announcement to extend the entry restrictions." However, the Japanese government showed contradictory actions by lifting states of emergency one after another, citing improvements in the domestic COVID-19 situation.
Meanwhile, to respond to the US-China trade dispute and Japan's export restrictions, the South Korean government resumed the Diplomatic Strategy Coordination Meeting on the 28th, which was launched last July. This is the first meeting in five months since the last one held in December last year. The meeting reportedly discussed issues including the Terminal High Altitude Area Defense (THAAD), the use of US strategic assets and Chinese Huawei products, and 5G.
The Ministry of Foreign Affairs also integrated the previously separately operated subcommittees on diplomatic security and economic science and technology. The ministry plans to hold several subcommittee meetings and convene the third Diplomatic Strategy Coordination Meeting in the summer.
Foreign Minister Kang Kyung-wha, who attended the meeting, emphasized, "We are proactively identifying upcoming challenges and comprehensively reviewing our response directions according to various situations and issues to protect our citizens and safeguard national interests," adding, "Going forward, related ministries must work together to find creative and proactive solutions amid challenges."
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