Korea has amended it export control system on Monday, removing Japan from its whitelist of trusted trading partners.
Once the amendment goes into effect, Japan will no longer enjoy preferential treatment on over 17-hundred strategic items.
Various Japanese media outlets are giving out analyses on Korea's new trade restrictions against Japan, while Japanese firms are bracing for impact.
Today we go in-depth on Korea's removal of Japan from its whitelist amid continuing Seoul-Tokyo trade frictions.
For that, Dr. Yang Jun-sok, Professor of Economics at Catholic University of Korea joins me in the studio.
1. Minister of industry and trade Sung Yun-mo, while making the announcement yesterday said that "Korea needs to put an export control system in place as it's difficult to cooperate with countries that continuously violate basic principles of export control". What do you think is the implication of Korea's decision?
2. Korea's amended export controls will go into effect sometime next month after a period of opinion gathering. We know that Japan will no longer enjoy preferential treatment, but how exactly will the import procedures change for Japan?
3. Some point out that Korea's new export curbs on Japan will have a limited impact on Japanese firms, and instead, will backfire and affect Korean firms to a greater extent. Your thoughts?
4. Following Korea's announcement, Japan's Vice Foreign Minister Masahisa Sato said Seoul's removal of Tokyo from its whitelist, if it was in retaliation against Japan's trade curbs, violates the WTO rules. Given that South Korea is planning to take Japan's trade curbs to the WTO, how would the current sentiment in Japan affect how things would play out at the WTO?
5. Last Thursday, Japan gave the first export approval of a Korea-bound key high-tech material, which was subject to stricter regulations since Japan slapped export curbs against Korea. How did you see that? Would you say Japan has taken a step back from its hard-line stance?
6. Do you think Japan's first approval on Korea-bound high-tech materials somewhat eased uncertainties for Korean firms?
7. Japan, meanwhile, did not specify which goods will be categorized as items that need individual export approval. And President Moon, yesterday, once again showed willingness for dialogue. Will the two sides meet for talks anytime soon?
8. Seoul's Deputy National Security Advisor Kim Hyun-chong recently stated Japan's move to expel South Korea from its trade whitelist, has only had a "handful" of real effects on the economy. Do you agree?
Kim Hyun-chong also said during his visit to Washington last month, he did not ask U.S. officials for mediation, as doing so would have yielded reverse effects. How do you interpret that?