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Jacob comments

Posted in: Angry South Koreans accuse Japan of 'economic invasion' See in context

This is not a trade ban. By removing South Korea from the white list, Japanese firms that trade with the country need to fill out additional paperwork to the Japanese government to acquire a export permit for certain items. South Korea was the only Asian country on the list, so Taiwanese and Chinese tech companies have been going through this same process for years. It is more a regulation on the part of the Japanese government to keep track of each export’s destination.

Contrary to the Korean media’s sensational reports of a massive GDP contraction (which is based on the false assumption that this is a ban), a Goldman Sachs report from July 21 states that the effects of the removal will be temporary and will return to normal once companies get used to the paperwork. Disruptions to Japanese-Korean trade will occur, but they will be limited in the sense that any slowdown will be caused by companies being unfamiliar with filing out the new forms for the first time.

See Bloomberg article: Goldman, BofAML See Limited Disruption From Japan-Korea Spat

https://www.bloomberg.com/news/articles/2019-07-22/goldman-bofaml-see-limited-disruption-from-japan-korea-spat

Anti-Japanese nationalism is playing a significant role in the Korean popular response to the white list removal. Where were they when Trump threatened steel and car tariffs on Korean companies? Most businesses in Korea that trade with Japan do not know what the white list changes mean, even though they are the ones who are most likely to hire expensive corporate lawyers to read through this stuff. Therefore, it’s highly unlikely that the various civic associations and media outlets that are mobilizing the Korean people to boycott Japanese goods grasp the details beyond a handful of such slogans as “economic invasion.”

Financial Post: S.Korea launches 'Let's Learn Japan's Restrictions' website for puzzled businesses

https://www.google.com/amp/s/business.financialpost.com/pmn/business-pmn/s-korea-launches-lets-learn-japans-restrictions-website-for-puzzled-businesses/amp

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