Ministerial Meeting on Japan’s Trade Curbs

Government to Flexibly Apply Regulations to Promote

High-tech Material R&D

Deputy Prime Minister Hong Nam-ki presided over the Ministerial Meeting on Japan’s Trade Curbs[1], held on July 19, a third gathering to discuss recent developments in the trade issue and review ways to reduce losses that can be incurred to Korean companies.  Participants discussed ways to promote the development of high-tech materials.

The following is a summary of the discussion.

1) The government will work on temporarily relaxing regulations to promote the development of high-tech materials.

- Work on streamlining the approval process required to use chemical substances if they are needed for the R&Ds of high-tech materials, and work on the accelerated approval of new chemical substances

- Work to allow longer work hours to help companies that can be affected by Japan’s export curbs

- Announce a guide for flexible work-hours, which will be applied to R&D workforce

- Work on financial support for companies affected, which will be provided through state-owned financial institutions

2) The government will work on the following to help reduce industrial reliance on Japan and improve Korea’s industrial fundamentals.

- Work for the fastest passage of the 2019 supplementary budgets, which include support for material, part and equipment industries

- Include in the 2020 budget proposal support for high-tech material R&Ds, and work to give them budget support without feasibility study

- Expand the new growth engine R&D tax deduction to technologies involved in high tech materials, parts and equipment

The meeting also examined items that might be affected if the country is dropped out of the ‘white list’, and discussed responses.

Please refer to the attached pdf