South Korea is introducing a regulation today (July1) on the manufacture and sale of products containing lithium-ion batteries. It is a regulation that could shut out Japanese products, which use lithium-ion batteries, from the South Korean market. According to a report by the Yomiuri Shimbun last week (June 22), the regulation requires that “those wishing to manufacture or sell such products in South Korea obtain certification from a designated organization in the country.”

Japan holds 60% of the global lithium-ion battery market, where it is also South Korea’s biggest rival, said the Yomiuri Shimbun. Japan will reportedly demand South Korea to amend the regulation. The matter may also be taken up by Japan to the World Trade Organization (WTO). WTO rules state that member countries must be given access on equal terms to each other’s markets.

The US has previously demanded South Korea to review the said regulation. South Korea then made US products exempt from the regulation from October, if the US products have been certified by a US organization, said the Yomiuri Shimbun. No similar exemption has been given to Japan.

The regulation is seen by some as a South Korean effort to give its electrical appliances industry a competitive edge, a kind of protectionism after the global financial crunch, according to the Yomiuri Shimbun.

Lithium-ion batteries are used in electrical devices such as cell phones, personal computers, and digital cameras. Japan and other countries have reportedly been applying safety standards on the batteries after reported cases of overheating or explosions.


-  Jen Balboa

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¹ http://www.yomiuri.co.jp/dy/business/20090622TDY01304.htm