5 Business Organizations Sent Opinion to Japanese Government Calling for Withdrawal of Export Trade Control Order

- Jointly delivered to Japan’s Ministry of Economy, Trade and Industry on 23^rd -

Five Korean business organizations, including the Korea International Trade Association, Korea Chamber of Commerce and Industry, Korea Employers Federation, KBIZ Korea Federation of SMEs, and the Federation of Middle Market Enterprises of Korea delivered an official opinion to Japan’s Ministry of Economy, Trade and Industry on July 23^rd, calling for withdrawal of the revised bill of the Export Trade Control Order. 

The organizations stressed in the opinion, “If Japan’s ‘Export Trade Control Order’ is implemented, it will hurt the ties between Korea and Japan and cause uncertainties in trade and industrial relations of the two countries, and bring significantly negative impact on the global economy through disruption in the value chain. Therefore, the order must be withdrawn.”

The five economic bodies pointed out that the principle of free trade order, which Korea and Japan have been championing, could be hindered by the restriction. They argued that the two countries have effectively operated export controls and management systems making sure that they do not undermine the foundation of free trade, and in the same context, this control order must be reconsidered.

In addition, they indicate clearly, “The Japanese government announced the revised ‘Control Order’ on the grounds that the trust relations between the two countries were severely damaged. However, the Japanese government did not provide specific grounds for damage to the trust relationship, nor did it proactively communicate or negotiate with the Korean government in advance. It’s a matter of formality.”

They also expressed their concerns that since Korea and Japan have formed a complementary industry and trade structure through division and specialization for over 60 years and have grown into key countries in the global value chain, the negative impact will spread to third-party companies.

The opinion stressed, “In the midst of fierce competition between regions to secure the leadership of the future new industry and service industry, the friendly cooperation and specialization between Korea and Japan are becoming more important. Therefore, the revised control order must be withdrawn in order to build a favorable relationship between the two countries.”

Finally, the five business organizations stated, “We urge the Japanese government to withdraw the revised ‘Export Trade Control Order’ so as not to undermine the valuable relationship of trust that the two countries have built over a long time. Moreover, businesses in Korea and Japan need to make this event as an opportunity to cooperate and prosper together.”