| President Moon Jae-in speaks during an event to share the outcome of the government's initiative to achieve self-sufficiency in materials, parts and equipment at COEX convention hall in Gangnam District, Seoul, Friday. Yonhap |
Seoul-Tokyo relations expected to stay chilly
By Nam Hyun-woo
President Moon Jae-in said Friday Korea has made noticeable achievements in becoming self-sufficient in terms of key industrial materials, parts and equipment, implying that Japan's tactics to exert industrial influence by restricting exports towards Seoul over the two countries' historical disputes have been ineffective.
“The country has been walking the path toward self-sufficiency in materials, parts and equipment for the past two years, in response to Japan's unfair export restrictions that began like an ambush,” Moon said during an event to share the outcomes of the government's initiative to achieve self-sufficiency in materials, parts and equipment at COEX convention hall in southern Seoul.
“There have been concerns that the restriction will cause a heavy impact on our economy, but our businesses and people joined forces to overcome. Preferably, the restrictions have become an opportunity to increase domestic production and diversify import channels, enabling the country to increase its industrial self-sufficiency significantly.”
Japan has been restricting exports of industrial materials critical for chip and display industries _ the backbone of the Korean economy _ since 2019. Of those materials, three items _ photoresist, etching gas and fluorinated polyimide _ seemed the most critical, as Korea mostly relied on their supply from Japanese imports.
Japan said it did so because Seoul failed to control trade of sensitive items that can be diverted for military purposes, but its move is regarded here instead as an apparent retaliation against a Korean court's decision that ordered Japanese companies to provide compensation for their wartime slavery of Korean workers. Since then, the Moon government has been making efforts to nurture the country's industrial capabilities to help domestic companies become self-sufficient in supplying those materials, and the two countries' relations have been chilly, with Tokyo apparently avoiding Korea's invitations to talk.
During the meeting, Moon said the supply chains for the three materials have become stable, with the country lowering its reliance on Japanese etching gas from 50 percent to 10 percent over the past two years.
According to data from the Ministry of Trade, Industry and Energy, Korea's imports of etching gas from Japan stood at $9.38 million last year, down 86 percent from $66.86 million in 2018, after Korean companies such as Soulbrain and SK Materials expanded their etching gas supply.
In terms of fluorinated polyimide, the ministry said Japanese imports have virtually plunged to zero, as most domestic companies replaced the material with ultra-thin glass. Japanese photoresist imports also declined significantly, as companies opted for Belgian imports.
Following those efforts, Korea's reliance on Japanese imports in the top 100 industrial items also declined to 24.9 percent as of May, down from 31.4 percent at the end of 2019, the ministry said.
| President Moon Jae-in puts his hand over his heart during an event to share the outcome of the government's initiative to achieve self-sufficiency in materials, parts and equipment at COEX convention hall in Gangnam District, Seoul, Friday. Yonhap |
During his speech, Moon controlled his rhetoric, saying “the government does not believe Korea should be self-sufficient on everything” and “the government is making diplomatic efforts to address Japan's export restrictions.” But Friday's event was largely interpreted as a proclamation that Japan's export restrictions had been ineffective.
Presidential senior secretary for public communication Park Soo-hyun, in his Facebook posting, likened Korea's efforts to cut industrial reliance on Japan to an “independence movement,” referring to the country's campaign to achieve independence from Japan's 1910-45 colonial rule.
Park wrote that presidential aides advised Moon two years ago to choose “diplomatic methods” to address Japan's export restrictions, but Moon “reprimanded” them with a message that the country should stand up to Japan's restrictions. Park added that the government and the Korean public will bring an “industrial independence day.”
As Cheong Wa Dae celebrates Korea's industrial independence from Japan, the two countries' relations are expected to remain sour.
While Moon has been calling for talks between the two countries, Japanese Prime Minister Yoshihide Suga has been demanding Korea suggest a solution to resolve bilateral ties before agreeing to a dialogue.
Against this backdrop, Japanese news outlets have been releasing reports containing the Japanese government's skeptical views on a Moon-Suga meeting amid the Tokyo Olympic Games this month.
Cheong Wa Dae has yet to announce whether Moon will attend the sporting event, but ranking government officials told Hankook Ilbo, the sister paper of The Korea Times, that “chances are high that Korea's culture minister will attend the Games (in place for Moon), because Japan is reluctant to improve bilateral relations.”