South Korea Bans Export of 798 Items amid Discussions on Tighter Export Restrictions Against Russia

A status board at the Korean Security Agency of Trade and Industry in Gangnam-gu, Seoul displays major countries subject to export restrictions and sanctions by the international community last February. Yonhap News

The government expanded its ban on exports to Russia and added 741 items, including large machinery, automobiles, and chemical products, which are not weapons but have the potential to be used for military purposes. The ban will be enforced beginning April 28. The South Korean government appeared to tighten its restrictions amid reports that G7 countries are contemplating a complete export ban against Russia.

On April 23, the Ministry of Trade, Industry and Energy announced that it would enforce a revised public notice on the export of strategic items to Russia and its ally, Belarus, expanding the list of items subject to “conditional approval” from the existing 57 to 798 items beginning April 28. Conditional approval items are not strategic items, but the export of these goods is fundamentally banned because they have the potential to be used in the development, production, transport, and storage of weapons of mass destruction, missiles and conventional weapons.

Most of the 57 restricted items were electric and electronic products, but this time, the government expanded the scope to general machinery, chemical products and computers.

One example is the ban on the export of quantum computers, which can perform at a level far surpassing ordinary computers and can be used to decode military codes. The export of some general parts to Russia, such as bearings broadly used in manufacturing transportation vehicles for civilian demand, will also be banned. Gems like sapphire and ruby were also included because they can be used to manufacture optical products like lasers. Civilian automobiles will also be restricted since they can be used for military purposes just by removing some major parts and can be used to transport weapons and troops when necessary.

However, the government restriction will be applied to vehicles costing over $50,000, a standard set by the United States and the European Union, so no major problem is expected in the export of used domestic cars, which are mostly valued at under $50,000.

The trade ministry announced, “After the new notice is enforced, companies can apply for a conditional approval in exceptional cases only, such as when exporting the remaining volume from an existing contract or when exporting to a company that is 100% the affiliate of a South Korea corporation.” The ministry also mentioned that it would strengthen efforts to crack down on the items entering Russia or Belarus after going through a third country.

Experts believe the international community will tighten its sanctions on exports to Russia to a complete ban. At present, the U.S. and the E.U. only restrict exports of some hundreds of items including semiconductors and advanced technology.

With a G7 summit scheduled to be held in Hiroshima, Japan next month, member countries are contemplating a complete ban. Until now, the G7 opted to restrict the export of some items while allowing exports to Russia in general, but in the future, they may ban exports completely while only allowing some exceptional items.

However, some experts argue that a complete ban would not be realistic considering the opposition from businesses and the possibility of retaliation from Russia.

Meanwhile, the South Korean government will include Japan in its “white list” of countries eligible for a fast-track export process beginning April 24. Japan will re-enter the list for the first time in three years and seven months after it was removed in response to Japan’s unilateral export controls in September 2019. The government published the notice in the government newsletter Monday. South Korea was first to restore Japan in the trade white list after bilateral relations began to recover at the South Korea-Japan summit last month.

Japan is expected to put South Korea back on its white list soon, but it might take more time. A trade ministry official said, “In our country, the white list can be determined by a notice released by the trade ministry, but in Japan, it cannot be decided by the Ministry of Economy, Trade and Industry alone and must go through a cabinet meeting, a government-wide consultative body,” and added, “The two countries are currently engaging in policy discussions so that Japan can smoothly restore its white list.”