Japan has removed Korea off its 'whitelist' of trusted partners earlier this month, and the revised export control took effect as of today.
More than 1-thousand strategic items are now subject to an individual export approval from Japan, which could take up to 90 days.
Korea had made numerous requests for dialogue while hinting that it would reconsider the fate of GSOMIA should Japan roll back its export curbs.
But ignoring those gestures, Japan has downgraded Korea's trade status.
Today we go in-depth on the 'whitelist' removal of Korea and the possible fallout with Dr. Yang Jun-sok, Professor of Economics at the Catholic University of Korea.
1. So Korea's trade status has been officially downgraded by Japan. But market reactions were relatively calm today. Let's begin with market analysis.
2. As Korea is now off Japan's 'whitelist', more than 1-thousand strategic items are now subject to an individual, case-by-case export approval from Japan which could cause great damage in material supplies. What kind of items are included on that list?
3. There are reports that Korea could utilize the Internal Compliance Program, or ICP, of some Japanese firms which would allow Korea to enjoy the same trade benefits it enjoyed before being removed from the whitelist. Can you tell us more about this program?
4. There are also reports on how Japanese firms are looking for the loopholes to seek ways to export their products to Korea through a third country. How do you see this and does this imply that Japanese firms will also be hurt by Japan's trade curtbs against Korea?
5. The whitelist removal came on top of the already existing trade curbs on three high-tech materials slapped by Japan last month. So far, Japan has approved exports of photoresist to Korean firms on two separate occasions. Why photoresist and not the other two materials?
6. Of the more than 1-thousand items that are now subject to tougher export procedures due to whitelist removal of Korea, which items do you think Japan would target next?
7. Some Japanese news outlets are reporting that the Japanese government and the ruling Liberal Democratic Party are mulling a third round of export curbs on Korea. Do you expect further economic restrictions from Japan?
8. The Korean government announces it will invest more than four billion dollars in the local parts, materials and equipment sectors over the next three years as part of efforts to mitigate fallout from Japan's restrictions. Could this be a viable solution?