The South Korean government has assessed that the impact on South Korean companies will be minimal in response to the US government’s new export controls targeting advanced technologies such as quantum computers and next-generation semiconductors.
South Korea’s Ministry of Trade, Industry, and Energy announced that Thursday morning, the US Department of Commerce’s Bureau of Industry and Security had released a revision of the export control measures related to advanced technologies, including quantum computing and semiconductor manufacturing.
Key aspects of the revision include adding 24 items related to these advanced technologies to the list of controlled goods. As a result, exports, re-exports, and domestic transfers from the US to all countries will now require authorization from the Bureau of Industry and Security.
However, an exception clause has also been established, allowing exports without permission to countries like the UK and Japan, which implement the same controls as the US. South Korea is not currently included in this list. Still, the US has indicated that it would approve export licenses if South Korea applies, suggesting that the impact on Korean companies will be limited.
South Korean Ministry views the US action as a measure to enhance controls on advanced technologies for national security and diplomatic policy reasons. It believes the action aims to prevent the diversion of advanced technologies for military purposes through coordinated controls with allies and like-minded countries.
Currently, South Korea’s foreign trade regulations prevent it from independently imposing controls on items not covered by the international export control regime, which means it cannot currently secure exceptions to the approval requirements.
Legislative amendments expanding the scope of export controls are expected to be completed by October, after which discussions on control coordination with the US government are anticipated.
