Japan asks South Korea for explanation on their change in trading policy

In the recent escalation in the trade feud between the two Asian neighbors, the ministry of Japanese industry on Tuesday questioned the rationale behind the decision of South Korea in mid-August for removing Japan from the list of their preferred trading partners.

The Ministry of Economy, Trade and Industry has submitted their opinion to South Korea about the decision that was announced on 12th August for ending the preferential trade status of Japan.

If South Korea continues with their plans of removing Japan from their list of the top-tier trade partners without responding to the questions on their rationales and details, this revision shall be assumed as arbitrary and also illegitimate countermeasures to Japan, said the ministry in a statement.

In addition to further restrictive conditions on the application for comprehensive licenses for the export of strategic goods to Japan, the exportation approval process shall also be extending to between five and fifteen days.

Seoul’s decision has come after Japan’s decision of removing South Korea from their white list of preferred trade partners who enjoy minimum trade restrictions on the goods like electronic components which can be diverted for the use of military.

Japan has already implemented tighter controls in July on exports of some  of the materials that are needed by the South Korean manufacturers of semiconductors as well as display panels, including the Samsung Electronics Corporation and SK Hynix Inc.