Subject to FDPR, South Korea's exports of semiconductors, ICT and other products to Russia will require US approval

The South Korean government said on the 28th that it would join the sanctions against Russia. Currently, South Korean companies must obtain prior approval from the US Department of Commerce to export products that meet the Foreign Direct Product Rules (FDPR) to Russia.

According to BusinessKorea, the FDPR is to prevent the export of products based on US technology and software without the approval of the department. The US Department of Commerce applied the regulation to 57 items in seven industries, including semiconductors, information and communication technology (ICT), sensors and lasers, and aerospace, on the 24th of last month.

A total of 32 countries and regions are not subject to this restriction, including EU member states, Australia, Canada, Japan, New Zealand and the United Kingdom. These countries are imposing sanctions on Russia. South Korea, mainland China, India and Taiwan, which do not impose sanctions separately, are also subject to the FDPR. The South Korean government plans to negotiate with the United States within this week to exempt it from the restrictions.

The report pointed out that due to the slow response of the South Korean government, exports in the semiconductor and information and communication technology (ICT) sectors will also be affected. Many people criticized the government for not joining the sanctions earlier.

The South Korean government decided to negotiate the above content in order to minimize the losses of enterprises, and said: "We have also announced an export ban on strategic materials, and the United States is expected to reclassify them." "Despite this regulation, semiconductor consumer goods such as consumer electronics, smartphones, and automobiles can be exported to Russia normally."

However, experts believe that the government's measures came too late and the impact on exports may be greater. One of the officials explained: "For strategic materials, the application will be more stringent. Considering that these materials may be used for military purposes, there is a possibility that the United States will regard them as strategic materials."