S Korea's preferential trade partner status restored by Japan

Japan had removed South Korea from its so-called white list of countries entitled to minimum trade restrictions in August 2019 after the apex South Korean court ordered two Japanese firms in 2018 to compensate Korean plaintiffs over forced labour accusations connected to Japan's 1910-1945 colonial rule of the Korean Peninsula.

The South Korean government later removed Japan from its white list as well.

Japan had claimed then that it was concerned over South Korea's export system and needed assurance about exported goods not landing up in North Korea and other countries of concern, a news agency reported.

With a change of leadership in South Korea, ties improved between the two countries, leading to a summit between Prime Minister Fumio Kishida and President Yoon Suk Yeol in March this year.

Japan eased export controls on three key semiconductor manufacturing materials bound for South Korea in the same month, in response to Seoul retracting its complaint at the World Trade Organisation over the export controls.

South Korea put Japan back on its list of countries entitled to preferential treatment in April, allowing strategic items to head to Japan with a shorter review period.

The two sides signed a memorandum of cooperation in July this year to hold a regular policy dialogue on export procedures.

Fibre2Fashion News Desk (DS)