JAPAN – MEASURES RELATED TO THE EXPORTATION OF PRODUCTS AND TECHNOLOGY TO KOREA REQUEST FOR CONSULTATIONS BY THE REPUBLIC OF KOREA
Document: REQUEST FOR CONSULTATIONS BY
Date: 16 September 2019
Document codes: WT/DS590/1; G/L/1325; G/TFA/D3/1; G/TRIMS/D/45; S/L/431; IP/D/42
Complainant: South Korea
Respondent: Japan
Third parties: Brazil, Canada, China, Taiwan, EU, India, Norway, Russia, Saudi Arabia, Singapore, Turkey, Ukraine, United Kingdom, U.S.
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. I, X, VIII, XI:1, XIII, XIII:1, XXIII:1(b)  GATT 1994Art. 2, 6, 7, 8  Trade Facilitation (TFA)Art. 2  Trade-Related Investment Measures (TRIMs)Art. 3.1, 4, 28.2  Intellectual Property (TRIPS)Art. VI:1, VI:5(a)  Services (GATS)Art. XVI:4  Agreement Establishing the World Trade Organization

JAPAN – MEASURES RELATED TO THE EXPORTATION OF
PRODUCTS AND TECHNOLOGY TO KOREA
REQUEST FOR CONSULTATIONS BY THE REPUBLIC OF KOREA
The following communication, dated 11 September 2019 , from the delegation of the Republic of
Korea to the delegation of Japan, is circulated to the Dispute Settlement Body in accordance with
Article 4.4 of the DSU.

Korea ("Korea"), I hereby request consultations with the Government of Japan ( "Japan") pursuant
to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"),
Article 24 of the Agreement on Trade Facilitation ("TFA"), Article 8 of the Agreement on
Trade-Related Investment Measures ("TRIMs Agreement"), Article XXIII of the General Agreement
on Trade in Services ("GATS"), and Article 64.1 of the Agreement on Trade -Related Aspects of
Intellectual Property Rights ("TRIPS Agreement") regarding certain measure of Japan restricting
exports of fluorinated polyimide, resist polymers and hydrogen fluoride , and their related
technologies destined for Korea.
2. Korea considers that this measure is inconsistent with Japan 's obligations under various
provisions of the covered agreements.
3. Korea's request also concerns any amendments, reviews, or extensions of this measure, as
well as any laws, regulations or administrative decisions closely related to the challenged measure
identified in more detail below. Korea's request also concerns any and all individual export licenses
granted or denied by Japan in connection with the measure identified herein.
4. Below, Korea identifies the measure at issue and indicates the legal basis for its complaint.
I. IDENTIFICATION OF THE MEASURE
5. On 1 July 2019, the Ministry of Economy, Trade and Industry of Japan ( "METI") announced1
that it would apply different licensing policies and procedures on the export and transfer of certain
controlled products and their relevant technologies destined for Korea based on Article 25(1) and
Article 48(1) of the Foreign Exchange and Foreign Trade Act of Japan.2
6. In accordance with the announcement, with effect from 4 July 2019, Japan began subjecting
three specific p roducts and their related technologies to unduly stringent export licensing policies
and procedures whenever export of such products and technologies are destined for Korea (the
"Amended Export Licensing Policies and Procedures "). These specific products are (i) fluorinated

1 "Update of METI's licensing policies and procedures on exports of controlled items to the Republic of
Korea" (1 July 2019, Ministry of Economy, Trade and Industry) <
https://www.meti.go.jp/english/press/2019/0701_001.html >.
2 Kanpou (Official Gazette) Gougai No. 135 (1 December 1949).
WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42

polyimide;3 (ii) resist polymers;4 and (iii) hydrogen fluoride.5 These products are used primarily in
the production of smartphone and TV displays and of semiconductors.
7. Japan alleged that it had "recently found that certain sensitive items have been exported to
Korea with inadequate management by companies "6 and that it was thus necessary to apply more
stringent export licensing procedures in relation to these products and their relevant technologies.7
However, Korea considers that the changes to Japan's export control treatments vis-à-vis Korea
have been based instead on political considerations unrelated to any legitimate export control
considerations with respect to Korea or to the three identified products.8 In Korea 's view, the
implementation of the Amended Export Licensing Policies and Procedur es constitute s politically-
motivated, disguised restrictions on trade.
8. Japan's Amended Export Licensing Policies and Procedures have been implemented by certain
amendments to the following four notifications:9

3 Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended
Table 1 of the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the
Ministry of International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gougai No. 151
(14 October 1991), Article 4(xiv)(b). This product is classified within Export Control Classification Number
("ECCN") 1C009.b under the US Export Administration Regulations ("EAR"), to which the Japanese export
control regulation refers.
4 Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended
Table 1 of the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the
Ministry of International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gougai No. 151
(14 October 1991), Article 6(xix). These products are broadly classified within ECCN 3C002 under the US EAR,
to which the Japanese export control regulation refers.
5 There is no additional definition of hydrogen fluoride under Japan's export control regulation, but this
product (also identified under C.A.S. #7664-39-3) is classified within ECCN 1C350.d.10 under the US EAR.
Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended Table 1 of
the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the Ministry of
International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gougai No. 151
(14 October 1991), Article 2(1)(i)(f).
6 "Update of METI's licensing policies and procedures on exports of controlled items to the Republic of
Korea" (1 July 2019, Ministry of Economy, Trade and Industry) <
https://www.meti.go.jp/english/press/2019/0701_001.html >; "Regarding the Notification (tsuutatsu) to
amend parts of notifications including the 'Notification (tsuutatsu) on the implementation of the Export Trade
Control Order'" (1 July 2019, Security Export Licensing Division, Ministry of Economy, Trade and Industry)
< https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_gaiyo.pdf >
7 "Regarding the Notification (tsuutatsu) to amend parts of notifications including the 'Notification
(tsuutatsu) on the implementation of the Export Trade Control Order'" (1 July 2019, Security Export Licensing
Division, Ministry of Economy, Trade and Industry) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_gaiyo.pdf >
8 https://www.reuters.com/article/southkorea-japan-laborers/japans-seko-says-export-curbs-for-
skorea-not-in-violation-of-wto-rules-idUSL4N2422V4
9 "Regarding the Notification (tsuutatsu) to amend parts of notifications including the 'Notification
(tsuutatsu) on the implementation of the Export Trade Control Order'" (1 July 2019, Security Export Licensing
Division, Ministry of Economy, Trade and Industry) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_gaiyo.pdf >; Notification (tsuutatsu) to
amend parts of notifications including the 'Notification (tsuutatsu) on the implementation of the Export Trade
Control Order' (dated 1 July 2019, Trade and Economic Cooperation Bureau Notification No. 2 of 25 June 2019
/ Export Caution No. 28 of 2019) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_jyobun.pdf >, which amended four
Notifications: Notification (tsuutatsu) on the implementation of the Export Trade Control Order (dated
6 November, 1987, Trade and Economic Cooperation Bureau Notification No. 322 of 1987 / Export Caution
No. 11 of 1987) < https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_1.pdf >; Notification
(tsuutatsu) on licensed technology transfer conducted in conformity with the provisions of Article 25(1) of the
Foreign Exchange and Foreign Trade Act and Article 17(2) of the Foreign Exchange Order (dated
21 December 1992, Trade and Economic Cooperation Bureau No. 492 of 1992) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_2.pdf >; Notification (tsuutatsu) on
guidelines for bulk licenses (dated 25 February 2005, Trade and Economic Cooperation Bureau Notification
No. 1 of 23 February 2005 / Export Caution No. 7 of 2005) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_3.pdf >; Notification (tsuutatsu) on
documents and cautions for application for export license, service transaction license and export license for
specific recorded media (dated 2 April 2012, Trade and Economic Cooperation Bureau Notification No. 1 of
23 March 2012 / Export Caution No. 18 of 2012) <
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_4.pdf >.
WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42

• Notification (tsuutatsu) on the implementati on of the Export Trade Control Order (dated
6 November, 1987, Trade and Economic Cooperation Bureau Notification No. 322 of
1987 / Export Caution No. 11 of 1987);
• Notification (tsuutatsu) on licensed technology transfer conducted in conformity with the
provisions of Article 25(1) of the Foreign Exchange and Foreign Trade Act and Article 17(2)
of the Foreign Exchange Order (dated 21 December 1992, Trade and Economic
Cooperation Bureau No. 492 of 1992);
• Notification (tsuutatsu) on instructions for bulk licenses (dated 25 February 2005, Trade
and Economic Cooperation Bureau Notification No. 1 of 23 February 2005 / Export Caution
No. 7 of 2005); and
• Notification (tsuutatsu) on documents and instructions for application for export license,
service transaction license and export license for specific recorded media (dated
2 April 2012, Trade and Economic Cooperation Bureau Notification No. 1 of 23 March 2012
/ Export Caution No. 18 of 2012).
9. Pursuant to the Amended Export Licensing Policies and Procedures, Japan has removed Korea
from the category "Region I ①" and placed it alone in the newly established category "Region Ri".
As a result, (i) "bulk licenses" are no longer applicable to the three identified products when the
export of such products and their related technologies are destined for Korea; (ii) all previously
granted "bulk licenses" for the three identified products and their related technologies d estined for
Korea were effectively terminated; (iii) exporters of the three identified products and their related
technologies can now apply for export licenses on individual contract basis only (as Japan defines,
"individual export licenses") when such exports are destined for Korea; (iv) the licensing procedures
for exports of the three identified products and their related technologies when such exports are
destined for Korea are now administered exclusively by METI's Security Export Licensing Division;
and (v) METI subjects exporters seeking to export the three identified products and their
technologies to Korea to unduly complex and burdensome export formalities.10
10. In sum, no form of "bulk license" is applicable to export of the three identified products and
their related technologies when destined for Korea. Applications for individual export licenses are
placed under increased scrutiny, causing unnecessary delay and other serious restrictions to the
exportation of these products and their related tec hnologies destined for Korea. Moreover, the
Amended Export Licensing Policies and Procedures effectively restrict various other forms of
international trade, including investments, licensing or other transfer of intellectual properties, and
supply of certain services relating to the technology transfer.
II. LEGAL BASIS
11. Korea considers that Japan's implementation of its Amended Export Licensing Policies and
Procedures is inconsistent with Japan 's obligations under various provisions of the covered
agreements. Specifically, the Amended Export Licensing Policies and Procedures are inconsistent
with:
• Article I of the GATT 1994 because, with respect to all rules and formalities in connection
with exportation, Japan fails to accord immediately and unconditionally any advantage,
favor, privilege or immunity granted to products destined for other countries to like
products destined for Kor ea. In particular, Japan no longer allows "bulk licenses" when
the exportation of the three identified products and their related technologies are destined
for Korea while not imposing similar restrictions on the exportation of the like products
destined for other WTO Members.
• Article XI:1 of the GATT 1994 because the Amended Export Licensing Policies and
Procedures constitute restrictions other than a duty, tax or other charge, that is made

10 For hydrogen fluoride, simplified export formalities applicable to exports destined for countries placed
in the category "Region I ①" are no longer applicable to exports destined for Korea. For fluorinated polyimide
and resist, simplified export formalities applicable to exports destined for countries placed in the category
"Region To ①" are no longer applicable to exports destined for Korea for the sole reason that Korea is now
placed in the category "Region Ri".
WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42

effective through an export license on the exportation or sale for export of the three
identified products and their related technologies destined for Korea.
• Articles XIII:1 and XIII:5 of the GATT 1994 because Japan no longer allows "bulk licenses"
when the exportatio n of the three identified products and their related technologies are
destined for Korea while the exportation of like products destined for third countries is not
similarly restricted.
• Article VIII of the GATT 1994 and Articles 6 and 10 of the TFA because Japan's Amended
Export Licensing Policies and Procedures impose unduly burdensome and complex
administrative formalities, and excessive fees and charges.
• Article X of the GATT 1994, as well as Article 2 of the TFA because Japan fails to administer
its laws, regulations, decisions, and rulings of general application relating to the
restrictions on exports in a uniform, impartial and reasonable manner. Furthermore, Japan
implemented the Amended Export Licensing Policies and Procedures only three days after
they were announced on its website, without providing Korea with an adequate opportunity
for comment and consultation.
• Articles 7 and 8 of the TFA because by unilaterally and abruptly implementing the Amended
Export Licensing Policies and Procedures , Japan fail s to provide for additional trade
facilitation measures for authorized operators based on objective criteria; creates arbitrary
or unjustifiable discrimination between operators where the same conditions prevail; and
fails to ensure that its agencies responsible for border controls and procedures relating to
exportation cooperate with Korea and coordinate mutual activities in order to facilitate
trade.
• Article 2 of the TRIMs Agreement because the Amended Export Licensing Policies and
Procedures constitute an investment measure related to trade in goods, which is
inconsistent with the provisions of Article XI of the GATT 1994.
• Articles 3.1 and 4 of the TRIPS Agreement , because by creating certain obstacles for
Korean nationals concerning the transfer of the technologies related to the three identified
products, which are not faced by Japanese nationals or nationals of certain other WTO
Members, Japan has failed to accord to Korean nationals treatment no less favorable than
that accorded to Japan's own nationals and nationals of any other country with regard to
the protection of the intellectual property related to the three identified products.
• Article 28.2 of the TRIPS Agreement, because Japan fails to ensure patent owners' rights
to assign or otherwise transfer the patent and to conclude relevant licensing contracts in
relation to the three identified products.
• Articles VI:1 and VI:5 of the GATS, because Japan fails to administer its laws, regulations,
decisions, and rulings of general applicati on affecting trade in services in a reasonable,
objective and impartial manner. Furthermore, the Amended Export Licensing Policies and
Procedures nullify or impair Japan's specific commitments in a manner more burdensome
than necessary to ensure the quali ty of the relevant service, or in a manner that
constitutes a restriction on the supply of the relevant service.
• Article XVI:4 of the Marrakesh Agreement Establishing the World Trade Organization
because Japan, through the implementation of the Amended Export Licensing Policies and
Procedures, is not ensuring the conformity of its laws, regulations and administrative
procedures with its obligations as provided in the covered agreements.
12. In addition to, and independently of, the multiple violation s of obligations under the
GATT 1994 identified above, Korea considers that benefits accruing to Korea directly and indirectly
under the GATT 1994 are being nullified and impaired as a result of implementation of the Amended
Export Licensing Policies and Procedures, within the meaning of Article XXIII:1(b) of the GATT 1994.
WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42

III. CONCLUSION
13. In light of the foregoing, Korea considers that Japan's Amended Export Licensing Policies and
Procedures nullify or impair the benefits accruing to Korea directly or indirectly under the covered
agreements, or impede the objectives of these agreements.
14. Korea reserves the right to address additional measures and claims under other provisions of
the covered agreements regarding the above matters during the course of the consultations.
15. Korea looks forward to receiving Japan 's reply to this request and to fixing a mutually
acceptable date for consultations.