Ministry of Industry “Notification of FDPR Exception in the US”
Promotion of payment plans for companies and international students
Investigation of the damage situation of exports to China this week
▲ Government Ukraine emergency response task force meeting
The ’10th Ukrainian Emergency Response Task Force (TF) Meeting and Macroeconomic and Financial Meeting’ is being held at the Bank Hall in Jung-gu, Seoul on the 3rd, presided over by the 1st Vice Minister of Strategy and Finance Lee Won Lee (third from left).
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It was found that cell phones, automobiles and washing machines were excluded from the application of the FDPR, which was enforced by the US to control exports to Russia following Russia’s invasion of Ukraine. The government has decided to actively review and promote measures to resolve the difficulties of Korean companies, Russian residents, and international students in making payments to Russia.
The Ministry of Trade, Industry and Energy said on the 3rd, “In the course of consultations on cooperation on export control with Russia, the US Department of Commerce has mentioned that even if smartphones, finished cars, washing machines, etc. are subject to FDPR, it is safe to regard them as an exception unless they are consumer goods and military-related exports.” said. Also, he explained, “Our company’s exports to Russian subsidiaries are an exception to the application of the US ‘policy of denial’, and there is a possibility of permission through a case-by-case review.”
FDPR is a sanction clause that prohibits the export of products made by foreign companies outside the United States if they use software or designs that are subject to US control. All of the detailed technologies related to seven fields including electronics (semiconductor), computer, communication/information security, sensor/laser, marine, navigation/avionics, and aerospace apply.
The Ministry of Trade, Industry and Energy said, “The condition for being included in the US FDPR exemption countries is to implement export controls to Russia at a level similar to that of the international community such as the US. do,” he added.
Meanwhile, the Ministry of Strategy and Finance held a ‘Ukrainian Emergency Response Task Force’ at the Bank Hall in Seoul on the same day and announced that it would prepare a separate damage support plan specialized for small and medium-sized enterprises (SMEs). “This week, we will conduct an investigation on damage to small and medium-sized enterprises exporting to Russia and Ukraine and come up with countermeasures, including support for management stability funds and special guarantees, and activation of unit price adjustments,” said 1st Vice Minister Lee Won-won.
The government diagnosed that the impact of the Ukraine crisis was tangible, with more than 400 inquiries and difficulties related to export controls and payment. In Ukraine, local shipments and departures of grains for feed and edibles that have already been signed are being disrupted.
We will also review ways to resolve difficulties in payment for Korean companies, Russian residents, and international students. Vice Minister Lee said, “Domestic financial companies’ exposure to Russia was not large, accounting for 0.4% of total overseas exposure as of the end of last year. As it has decreased to USD (regarding 1.4 trillion won), the direct impact will be limited.”
Senior Correspondent Ryu Chan-hee, Sejong
Reporter Im Joo-hyung
