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South Korean Trade Minister Yeo Han-koo in meeting with his US counterpart on March 3. Courtesy of The Ministry of Trade, Industry and Energy South Korea won an exemption from the United States' expanded export restrictions on Russia over its invasion of Ukraine, the country’s trade ministry announced Friday. The Ministry of Trade, Industry and Energy said, “Washington assessed that Seoul’s export control against Moscow is ‘well-aligned’ with the international standard and thus decided to put South Korea on the list of nations exempt from the Foreign Direct Product Rules (FDPR.)”An official announcement on the revised list is expected within days, the trade ministry added.The FDPR gives Washington the control to ban exports of goods that are not made in the US but produced with the country’s technology or software. The new measure has been in effect since Feb. 24. Fifty seven technologies in seven industries, including the semiconductor industry, are subject to the export control. Last week, the US government announced the FDPR for “all of Russia” to limit the country's access to global high-tech products and components. At the time of the announcement, South Korea was not included on the list of 33 nations exempt from the US export control, which included the European Union, Britain and Japan. The adjustment to the exemption follows South Korean Trade Minister Yeo Han-koo’s meeting with senior US officials in Washington a day prior. US Deputy Secretary of Commerce Don Graves and South Korean Trade Minister Yeo Han-koo
Seoul will strengthen its own export control to Russia as a follow-up measure to the FDPR exemption. The South Korean government will include 49 Russian entities such as the Russian defense ministry on its export blacklist; and require government permits on exports of non-strategic materials to the transcontinental nation.The exemption initially came as a relief to South Korean conglomerates, especially in the electronics and automobile sectors. Samsung Electronics Co. boasts the largest market share in Russia’s smartphone and TV markets. In home appliances, Samsung Electronics and LG Electronics Inc. jointly hold the No.1 positions. The automobile industry is also welcomed the decision, which meant that export of cars equipped with US technology or software is no longer restricted. Over the weekend, however, Samsung announced it is suspending product shipments to Russia. The company said in a press release: "We continue to actively monitor this complex situation to determine our next steps."By Zi-hoon Leelizi@hankyung.comJee Abbey Lee edited this article.
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