Japan restricts the export of some tech materials to South Korea

Japan announced trade restrictions on July 1, which will make it more difficult for Korean companies such as Samsung and LG to purchase materials and technologies for manufacturing chips and smartphones.  From July 4th, Japanese companies will need government approval to export polyimides that used for the manufacture of chips and smartphones to Korean companies.

The Japanese government will also seek public comment on whether South Korea should be removed from the “white list countries”. Companies operating in countries listed on “whitelisted countries” can trade in Japan with minimal restrictions.

“C64 mainboard”by Digger/ATL is licensed under CC BY-SA 2.0

The Ministry of Economics, Trade, and Industry said that the international export control system is based on the trust relationship, but from the review of relevant ministries, the trust relationship between Japan and South Korea has been seriously damaged. Japan stated that it is committed to establishing a free, fair, non-discriminatory, transparent, predictable and stable trading and investment environment and keeping the market open. International trade and investment are important engines of growth, productivity, innovation, job creation, and development.

In May of this year, the Japanese government also tightened regulations on foreign investors who are interested in buying shares in Japanese domestic technology companies. The new regulations will take effect in August this year, and 20 new industries will be added to the list of approvals. If foreign investors buy more than 10% of the shares of Japanese companies operating in these industries, they must obtain approval from the Japanese government. Japan’s various departments said in a joint statement that the importance of securing cybersecurity has increased in recent years, and Japan has decided to take the necessary measures to prevent cybersecurity from affecting Japan’s national security.