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Due to the trade friction with Japan, S. Korea is struggling to develop its technology. (Image via Pulse)
Japan vs. S. Korea: Hydrogen Fluoride imports approved amid restriction
Amid the trade friction between Japan and S. Korea, the Japanese government approved exports of hydrogen fluoride to S. Korea on 29 August, according to the Japanese government.The chemical is one of the essentials for the S. Korean tech companies to make computer chips, semiconductors, and display panels for computers and smartphones. Besides hydrogen fluoride, Japan also allowed exports of photoresists twice on 7 & 19 August.
The Japanese Ministry of Finance confirmed the rumors. It noted 470 tons of hydrogen fluoride shipped from Japan to S. Korea in July. Since the trade restrictions were imposed by the Prime Minister of Japan, Shinzo Abe, the export rate declined by more than 80%. Also, the value of export declined by more than 30% to ¥400.97 million, compared to 2018’s value at 500 million – 700 million.
The biggest tech company in S. Korea, Samsung, was reported to be one of the importers. Ever since the export restriction, S. Korea has been trying its best to be independent. S. Korean tech companies’ dependence on Japan’s hydrogen fluoride has decreased to at least 44%. Nonetheless, for the other two components, their dependence is still more than 90%.
While it seems to be good news for the world, Japan’s approval for the imports does not reflect any change in a stance against S. Korea. It still requires approval for the imports. On the other hand, S. Korea still struggles to beg for mercy from Japan’s export curbs.
Due to S. Korea mentioning compensation for wartime labor during World War II, Japan decided to remove S. Korea from its preferential trade treatment or whitelist. To get these chemicals, S. Korea needs to get special approval which they could not get since the friction broke loose in July. For S. Korean tech companies, this policy puts them between the devil and the deep sea.
Source: http://www.koreaherald.com/view.php?ud=20190830000090
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