Society

Japan ends preferential trade status for S.Korea

Aug 28 (NHK) - Japan has removed South Korea from a list of trading partners entitled to simplified export procedures. Some companies may need to submit extra paperwork, depending on the items they want to sell.

An ordinance that took effect on Wednesday ranks South Korea in Group B, the second-highest among four newly created categories. Nations in Group A are entitled to simplified procedures.

Exporters will need to gain approval from the trade ministry for each contract to sell such items as machine tools and carbon fiber. These are subject to severe restrictions because there is a high risk they could be used for military purposes.

Companies may also need to obtain approval to export other products if the ministry determines that they could be converted for military use.

Japan introduced tighter export rules last month on shipments of three high-tech materials to South Korea. The ministry has issued approvals to some applicants.

The ministry argues that these measures are not an export ban, but a review of procedures on national security grounds. It says applications will be approved if no problems are found.

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