South Korea Plans New Rules That Could Shut Out Products With Japanese-Made Li-Ion Batteries

22 June 2009

The Yomiuri Shimbun reported that the government of South Korea will introduce new regulations on the manufacture and sale of products containing lithium-ion batteries on 1 July. The rules reportedly could shut out products using Japanese-made lithium batteries from the South Korean market.

Japanese Li-ion battery manufacturers hold about a 60% share of the global Li-ion market.

The new regulations include a requirement that those wishing to manufacture or sell such products in South Korea obtain certification from a designated organization in the country...“The criteria for obtaining certification isn’t particularly clear,” a Japanese government official said. “We’re worried that Japanese products are basically being kicked out of the South Korean market.”

The government is planning to demand South Korea amend the regulations, and is prepared to take the issue to the World Trade Organization as it believes it likely the regulations violate WTO rules requiring member countries have access on equal terms to each others’ markets.

The South Korean government agreed to make US products exempt from the rules.