Expert's analysis of Japan's export curbs on South Korea

what started off as historical frictions have now escalated into treat tensions between Seoul and Tokyo let's now get the perspectives of a foreign expert on this issue and for that we have dr. Helmut Wagner the chair in macroeconomics at the University of Hagen joining us through Skype thank you for joining us dr. Wagner thank you very much for being here so with the trade restrictions kicking in today how much damage is expected for Korea considering that Korea is an export-oriented economy that relies heavily on semiconductors and tech goods and the short term I think direct effects on some tech companies such as Samsung will be very high and substantial but for the whole economy in Korea I think it will not be so substantial the Japanese trade action is not to compare with an export ban it only means that Japan will implement or increase bureaucratic measures export hindrances to some sensitive products and this will increase of course costs and uncertainty for companies such as Samsung or LG Electronics but you know the real danger comes from potential retaliation and counter Italia's measures this could end up in a trade war but also in an increase in political aversions and the most important thing I think is it will lead to a stop in the clumsy Asian integration process economic integration process which is very necessary for Asia I think the South Korean government strongly argues that Tokyo's trade curbs are a clear violation of international laws including the principle of WTO if a Korea takes the case to the WTO how do you expect the process to go I'm sure as you say that Korea will take the issue to the WTO but I think it will take a while to get a decision there and I'm afraid that the process will worsen in this meantime therefore I hope very much that both countries will get together and find a solution on a diplomatic way because retaliation measures will end up of course in a disaster and WTO decision will not be very much impressed upon I think fight off the negative impact of the restrictions what are some possible ways for South Korean firms to turn the crisis perhaps into an opportunity besides of trying to find a solution on the diplomatic way and to wait for a WTO decision Korea can try to find some substitutes it will not be easy but the substitutes can be materials other materials or it can be other allies other partners which may be export the same or similar products and I am sure and confident that China are that Korean companies will find some solutions and therefore I'm not quite sure that this Korea can do more because doing some retaliation measures will just worsen the situation it's a moment I'm not sure whether this Siraj step now one last question for you what do you make of this growing trend of tariffs threats and export restrictions in the global economy okay first let me see I forgot to say that there is a chance Japan against Japan Korean companies could end up in the in the last step to find some solution by increasing the productivity they are forced to now to really do innovate faster than before and with respect to your question of growing global trend of terrorist threats and export restrictions this global trend is really frightening but also a new trend of countries like United States to fight fiercely against countries which are the new competitors like China or an original way Japan now being afraid of Korea being a real competitor after Japan having been the real regional leader for such a long time that's frightening that in this a kind of situation in attica tightest trap way as Americans see that these countries take measures which are very bad for for the world situation and therefore I think all countries should be very soft in their reactions at the moment because the situation can easily go out of the line and therefore in principle it's an urgent need particularly in Japan and Korea and in Asia as a whole to intensify the discussions about Asian economic integration which have been so slow for the whole time and sees all this always ends up in such conflicts in Europe you find some ways after this European economic integration process to find a solution always we have the same problems with Germany and Greece and Germany and Poland and things like that which you have with Japan but we find solution because we have a basis on the basis of this European integration roses but that's assoumane thing I think Japan and Korea have to start to enforce and I'ma frighten that retaliation and counter retaliation will stop this process at all and this will be a disaster for both countries I'm afraid all right dr. Helmut Wagner joining us a through Skype from Germany tonight thank you so much for your insights thank you for inviting me

40 thoughts on “Expert's analysis of Japan's export curbs on South Korea

  1. As the movie The Iron Lady say by meryl streep We will Stand by principals or We will not stand at all.

  2. Look at the Japanese here, haha.
    They learn to lie from birth.
    And it's organized and it's 300,000 people!
    Can you believe it?
    They are inferior and jealous of Korea, Koreans, and Samsung.
    Since ancient times, Koreans had a high cultural level.
    The Japanese were always jealous of it. Ha ha.
    Today, Japanese people will secretly watch Korean dramas and listen to Korean songs!

  3. Japanese learn to lie from birth, and are not ashamed.
    Broadcasting and the press are controlled! And they move in one voice.
    Companies manipulate data beyond count.
    But no one scolds them!
    If you're from another country, you'll know the truth by looking at the Internet,
    but no one wants to know and lies.

  4. Nobody cares that 위안부 worked like that because they choose to work as 위안부…Most Koreans can ask their grandmothers, why they weren’t taken as 위안부…You need to question the validity of the 위안부 and forced labor narratives made up by the Korean historical revisionists…Koreans are misusing their own legal system to satisfy its own political nonsense.

  5. In the long run, South Korea will be a technological giant that does not need any trivial Japanese parts.
    Their prosperity is very obvious because Koreans have continually defeated their problems for thousands of years.

  6. It is all hydrogen fluoride of Japanese company even if we search high purity hydrogen fluoride all over the world

    Because world share 100%

    There are hydrogen fluoride production plants of Japanese companies all over the world

    S.Korea can not import from any country.

    Requires permission from the Japanese government

    There are patents all over the world

    Japan's most advanced technology

  7. GO JAPAN! What Korean people do these days is good for showing the world how stupid Korean people are:)

  8. Japan: stop poaching our world's whales, raping the oceans, killing dolphin families and smuggling illegal ivory or the US military will do another Hiroshima.
    Korea, Vietnam, and China: stop torturing and killing millions of pets.
    China: Stop smuggling endangered wildlife and massively polluting our world.

  9. An excerpt from a news article ↓

    A large amount of hydrogen fluoride has disappeared from South Korea

    South Korea smuggling to Iran and North Korea

    Japan is angry
    Consider additional sanctions against Korea

    US CIA under investigation

  10. This guy doesn't know anything about what is actually going on. Escalation is happening because of Japan started all this because they are ass holes…

  11. Korea will prevail and win against this stupid Japan. Japan you lost the biggest only market in the world and trust against your neighbor. Good move. You keep talking about South Korea sharing tech with North Korea but the truth will tell because none of them are true, stop making things up. Aho!! Nihonjin no Baka desune~ Abe san no stupid idiot desu~

  12. japs: i don't care USA. I don't need your help any more. You suck!! Actually i hate you in the first time we met! I have a Chinese friend now. So go f**k you! I'll be the no.1 in Asia without Yankees.👺👺👺

  13. North Korea and China should retaliate against Japan in retaliation to Japan for recieving no compensation for what Japan done to them too. Many got raped, displaced, suffered and died at the hands of the Japanese too.

  14. It's really not that big a deal, compared to the trade war between China and USA, this is really nothing. According to Reuters, in the first five months of this year, South Korea bought $103.52 million of photoresists from Japan, $28.44 million of hydrogen fluoride and $12.14 million of fluorinated polyimides. So we are talking about a very small spat in terms of dollar amount. Besides, it's not a total ban, just a 90 day delay to every order from S. Korea. In the long run, this is gonna hurt the Japanese companies who make these chemicals, as nations will diversify their suppliers and try to come up with domestic productions.

  15. The dense export of strategic substances from Korea is 156 cases from 2015 to March 2019. Hydrogen fluoride is also included in strategic supplies. (Used for VX nerve gas that was used to assassinate Kim Jong-nam) Will Korea really sue the WTO? Samsung dies and South Korea dies. Korean stock prices continue to fall. Are foreign exchange intervention funds also depleted? North Korea threatens Japan because Japan regulates to South Korea materials that can be diverted to nuclear development. >>> North Korea has confessed.

    South Korea to repeat anti-day, do the best of rude. At Japan's retaliation, the Korean government developed a tues disease. The treaty does not keep it, does not keep the bilateral promise, abolishes the agreement, and the Korean government who does not know the common sense of the world is a shameless outlaw.
    It seems that there is a request for retaliation in Korea. Please read the reply.

  16. Export control of semiconductor and display materials to Korea in Japan

    The Japanese government officially announced on July 1 that it will restrict exports of some of the materials used in Korea's semiconductors and displays. This will remove the preferential treatment for Korea and also remove it from the White country, because the trust in Korea has dropped significantly.
    ・Although this material is easy to divert to military use (uranium production), Korea has received preferential treatment to simplify the procedure, but diverted exports were found in North Korea and Iran.
    It takes 90 days to apply for and review the permit by removing the preferential treatment and switching to the export permit for each contract.
    ・The White country does not export goods that threaten world peace, and does not detour export. South Korea went through exports of materials for a military shift to North Korea and Iran.

    This also means that Korea has retaliated against frequent absurdions to Japan.
    ・Steaming back compensation and compensation for forced labor in World War II. (Resolved in 1965 Japan-Korea Basic Treaty, Japan-Korea Claim Right Agreement)
    ・Firearm control radar irradiation to the Japanese Self Defense Force patrol aircraft by the South Korea Navy. (Disturbance for smuggling of North Korean ships)
    ・Denied the flag of the Self-Defense Forces vessel (Asahi Sun Flag) to participate in the Korean observation-style participation. (Assign the Rising Sun Flag as a war crime flag from the 2011 national sentiment)
    ・Apology request to the Emperor. The chairman of the South Korea parliament requested the Emperor Emperor to apologize as the son of a war criminal.
    ・Dismantle the Comfort Women's Fund and destroy the World War II comfort women's compensation agreement agreement. (One billion yen embezzlement from Japan)

    The Korean government is planning to sue Japan against the WTO regarding export control of materials used for semiconductors and displays.
    ・Japan just removes the export preferential treatment to Korea and makes export examination the same as a normal country.
    ・Incentives are removed until Korea becomes a credible and decent country.
    ・Do not observe the treaty, break the agreement, overturn the bilateral agreement. This does not create trust.
    ・South Korea, which supplies materials necessary for the production of nuclear bombs to Iran and North Korea, is a terrorist support nation.

  17. the two allies of USA has been manipulated to fight each other at the end they both loser & USA winner, that is the price they got from USA to become a vassal state. Actually SAMSUNG A WINNER ON THE MARKET & SONY ALMOST GOT TO THE LIMBO ROCK.

  18. Enough is enough said Japan. I hope not but it seems that Japan is going to destroy
    Korean economy in a short period. So let's wait and see.

  19. I really can't understand why koreans keeps on asking Japan for compensation.

    "With the Treaty, the agreements between Japan and Korea concerning the settlement of problems in regard to property and claims and economic cooperation was also signed. Japan provided South Korea with $300 million grant in economic aid and $200 million in loans together with $300 million in loans for private trust, a total of $800 million as "economic cooperation".[5] The official policy of Japanese governments has been that, in regard to war-time property issues and individual claims for compensation, such issues were settled completely and finally by this agreement.

    Use of loans and grantsEdit

    The loans and grants provided to South Korea were used for the following projects. Pohang Iron and Steel Company used $88.68 million loan and $30.8 million grant, a total of $119.48 million, 23.9% of $500 million loans and grants."

    Grants and compensation has been made. The problem is Korea government is not giving the money to the victims.

  20. Btw, I also never thought Japan could retaliate this way. Economy retaliation against Supreme Court decision of Japanese war atrocity.
    So, ugly!

  21. to Fonzi-
    My great mother in law became a widower at age of 38. Her husband was a forced laborer during Japanese occupation and died of Tuberculosis leaving two children and a young wife in poverty.
    There are so many stories like this in Korea. Japan’s war atrocity is the Fact. I or any of family member does not want money. It is the way of being recognized for the atrocity that was committed by Japan. Korea is fine without Japan’s money.
    You have to learn history. your school hides and prevent you from learning the facts.
    That’s all-

  22. South Korea should apologize to Japan for messing up the 1965 reconciliation treaty, the 2015 agreement and lying about the radar incident etc. It's 100% Korea's fault.

  23. Hi, Korean people. You can stop to export Jinro and kimuchi to Japan in countermeasure. So Japan will gets serious damage.

  24. South Korea never thought that Japan would retaliate and carried out a number of hostile acts such as fire-control radar irradiation, insult remarks against the Emperor, abolition of comfort women agreement and others.

    On the "forced laborer" issue that was completely resolved under the 1965 Japan-ROK Basic Treaty , Korean supreme court ordered the Japanese side to compensate(in fact, the Korean plaintiffs were not forced laborers. they applied for Japanese companies during the wartime).

    The Korean government keeps ignoring Japan seeking correction of the Korean situation where international law has been violated.

    Now it is natural for Japan to remove South Korea from the white nations( formed with 27 security friendly countries) which are given preferential treatments for trade.

    Japan will cancel the preferential treatments but still treats South Korea as one of the general countries(in the same way EU treats Korea).

    Claiming as if Japan carries out economic sanctions against the WTO agreement is totally Korean propaganda.

  25. Korea has over 50 percent of the global semiconductor market. Japan is not even a global player. What happen to your high tech?

  26. Japan is the greatest high-tech country in the world.
    On the other hand, South korea is one of the low level technology country.

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