Japan restores South Korea’s preferential trade partner status

Japan reinstated South Korea on Friday to its list of countries with preferential trade status, allowing for simplified export procedures.

In August 2019, the government had excluded South Korea from the list, citing deficiencies in the country’s trade control system.

In the same year, the government also tightened export controls to South Korea for three materials used for the production of semiconductors and displays. Tokyo lifted the strict controls in March.

Under the preferential status, most of the items that were subject to strict controls no longer need export permits per contract.

The items include machine tools, which are believed to be at high risk of being diverted for military use.

Earlier this month, Tokyo and Seoul signed a memorandum to hold director-level policy talks periodically on their export control systems.

They said that if there are any problems, they will hold dialogue and decide what actions should be taken.