Japan tightens chip-material exports to Korea

Reading the numbers

Documented context for the figures above that run against the event’s headline. The measurements stand as they are; each item cites its sources.

2018 is the year before the licences; 2020 is their first full year and the COVID year (world trade in the chapter −11.3%); the licences ran to 23 March 2023. In the series on this page Japan's share of Korea's photographic and film goods imports was 67.8% (2018), 66.3% (2019), 68.2% (2020) and 65.6% (2021).

1. Scope of the measure

   Japan → Korea: 67.8% → 68.2% of Korea's photographic and film goods imports, $648m → $704m (+8.6%) (2018 → 2020). Chapter 37 is all photographic chemicals and film; photoresist is one heading, 3707. The licence requirement reached only the high-specification part of "resist", such as EUV photoresist, and from 20 December 2019 METI moved EUV photoresist for Korea to specific bulk licences. KITA: Korea's photoresist imports from Japan were $150.81m in January–May 2020, up 33.8% on a year earlier. [1] [6] [7] [8] [13]

2. Substitution

   Belgium → Korea: 1.2% → 3.8% of Korea's photographic and film goods imports (2018 → 2020); 6.8% in 2021. JSR has a plant in Belgium whose photoresists were not under the Japanese licence requirement. KITA's count shows Korea's photoresist imports diversifying to Belgium (RMQC), the United States (DuPont) and Germany (Merck), with Japan's share down from 92% in January–June 2019 to 85% in July–November; the government said imports of EUV photoresist from Belgium grew twelve-fold in two years. [10] [11] [15]

3. Product definition

   Korea's inorganic chemicals imports (HS 28): Japan's share 13.0% → 9.3% (−3.7 pp, 2018 → 2020); Korea's imports −8.0% in 2020. Chapter 28 runs from rare gases to precious-metal compounds and radioactive isotopes; hydrogen fluoride is one line, 2811.11. KITA and the semiconductor-display society: Korea's hydrogen fluoride imports from Japan were $4.03m in January–May 2020, −85.8% on a year earlier, Japan's share 43.9% → 12.3%, after Soulbrain and others began mass-producing liquid hydrogen fluoride matching the Japanese product in early 2020. [9] [14]

4. Business cycle

   World trade in photographic and film goods −11.3% in 2020 ($13.7bn); Japan's exports −6.5%, Korea's imports +8.4%. 2020 is the COVID year: Japan's photographic-goods exports fell to France (−39.2%), the UK (−40.7%) and the United States (−10.5%), while Korea's chip industry kept growing. MOTIE's annual figures: Korea's semiconductor exports were $99.18bn in 2020, +5.6% and the second-highest on record, while total exports fell 5.4%. [12]

Timeline

1. 1 Jul 2019METI announces individual licences for three items and moves to drop Korea from its white countries [1]
2. 4 Jul 2019Individual licences required for fluorinated polyimide, resist and hydrogen fluoride [1]
3. 2 Aug 2019Cabinet approves removing Korea from the white countries [2]
4. 28 Aug 2019Korea's removal from the white countries takes effect [2]
5. 11 Sep 2019Korea requests WTO consultations (DS590) [3]
6. 16 Mar 2023After a policy dialogue, METI decides to revise the controls on the three items [4]
7. 23 Mar 2023The three items return to bulk export licences [5]
8. 23 Mar 2023Korea withdraws its WTO complaint [3]

What else changed

World exports of photographic and film goods changed −12.8% between 2018 and 2020.

Values are in US dollars: prices and exchange rates move them as well as volumes, and this page does not separate them. None of the numbers here says why trade moved.

Documented context for the figures that run against the headline is in “Reading the numbers”, with sources.

Coverage

Sources

1. Update of METI's licensing policies and procedures on exports of controlled items to the Republic of Korea · Ministry of Economy, Trade and Industry, Japan (archived copy) · 1 Jul 2019
2. The Cabinet approved partial amendment to the Export Trade Control Order · Ministry of Economy, Trade and Industry, Japan (archived copy) · 2 Aug 2019
3. DS590: Japan — Measures related to the exportation of products and technology to Korea · World Trade Organization · no date; accessed 24 Oct 2026
4. Japan-Korea Export Control Policy Dialogue held · Ministry of Economy, Trade and Industry, Japan (archived copy) · 16 Mar 2023
5. Circular notice on partial amendment to the circular notice on the operation of the Cabinet Order on Export Trade Control (review of export control to South Korea) · Ministry of Economy, Trade and Industry, Japan (archived copy) · 23 Mar 2023
6. 韓国向け輸出管理の運用の見直しに関連する日本の制度運用についての基礎的解説 · 安全保障貿易情報センター (CISTEC) · 2 Aug 2019
7. 日, 수출규제 5개월 만에 '찔끔' 완화…"불확실성 우려 여전" · 서울신문 · 20 Dec 2019
8. [日 수출 규제 1년]소·부·장 경쟁력 향상됐지만…'100% 탈일본'은 아직 요원 · 뉴시스 (한국무역협회 집계) · 1 Jul 2020
9. [日 수출규제 1년-중] 반·디 절반의 성공...국산화 일부 성과에도 갈길 멀어 · 데일리안 (한국무역협회·한국반도체디스플레이기술학회 집계) · 22 Jul 2020
10. 동진쎄미켐, 日규제에도 '국산화' 포토레지스트 공장 증설 · 아시아경제 (한국무역협회 집계) · 15 Jan 2020
11. Korea significantly reduces dependence on Japan · Korea JoongAng Daily · 1 Jul 2021
12. 코로나에도 선방한 韓 수출…반도체 수출액 '역대 2위'(종합) · 뉴시스 (산업통상자원부 연간 수출입 동향) · 1 Jan 2021
13. Japan's Tariff Schedule (April 2020), Chapter 37: Photographic or cinematographic goods · Japan Customs · 1 Apr 2020
14. Japan's Tariff Schedule (April 2020), Chapter 28: Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes · Japan Customs · 1 Apr 2020
15. 'Samsung's foundry expansion faces hurdle on Japan's export controls' · The Korea Times · 9 Jul 2019

Related case studies and chains

No case study is built on this event yet.

• Chain: Chips and electronics