The Ministry of Trade, Industry and Energy announced that Japan has decided to lift export restrictions on three semiconductor materials, hydrogen fluoride, fluorinated polyimide, and photoresist, to South Korea.
Accordingly, the Korean government has decided to drop its WTO complaint against Japan’s export control measures.
The Ministry of Trade, Industry and Energy held the 9th Korea-Japan Export Management Policy Dialogue with Japan’s Ministry of Economy, Trade and Industry for three days from the 14th of this month and discussed the effectiveness of export management, including the system of export management authorities in both countries, system operation, and follow-up management.
The governments of South Korea and Japan have agreed to closely discuss the “White List of Countries” measure, which provides mutual benefits for simplification of export procedures, so that the country can be restored as soon as possible.
Previously, Japan started restricting exports to South Korea on three items, including hydrogen fluoride, in July 2019, in opposition to the South Korean Supreme Court’s final decision in October 2018 that Japanese defendant companies pay compensation to victims of forced labor.
These three items are important materials for Korea’s semiconductor and display industries. As of 2019, Japan produced about 90% of fluorinated polyimide and photoresist and about 70% of hydrogen fluoride in the global market.
Japan also excluded Korea from its list of white countries in August of the same year, and Korea filed a complaint against Japan’s export restrictions with the WTO in September of that year.
In November of the same year, Korea and Japan agreed to temporarily suspend the WTO process and proceed with dialogue on export control policies.
Since then, the progress of the WTO complaint has been stagnant at the stage of panel formation in both countries.