Impact of Japan's planned export regulations on Korean firms
- 5 years ago
日, 한국 수출 규제 발표…국내 기업 영향은?
Korean government ministries are responding quickly to these measures from Tokyo.
But still, there are concerns that they will hurt the business of some of Korea's biggest tech companies.
Our Ko Roon-hee takes a closer look.
South Korea's finance chief Hong nam-ki held a meeting with related ministries on Monday... to discuss possible countermeasures to Tokyo's planned export restrictions on Seoul.
And Trade Minister Sung Yun-mo will discuss the details of Japan's move in the trade ministry's meeting this afternoon.
Because Japan's planned restrictions will cover high-tech items necessary for manufacturing semiconductors... there are concerns over whether the restrictions will impact Korea's chip exports, which accounted for one-fifth of the county's total exports in 2018.
Two of the three items announced by Japan are related to semiconductor manufacture.
One is called resist, the thin layer used to transfer a circuit pattern to the semiconductor substrate.
The planned export restriction is likely to affect tech giants like Samsung Electronics and SK hynix...because Japan accounts for about 90-percent of the global production of the item.
The other is etching gas, and Japan produces around 70-percent of total global supply.
One other item, called fluorinated polyimide, is used for making displays used in Samsung and LG's smartphones.
And Japan accounts for about 90-percent of the global supply of this too.
Some analysts are downplaying the possible impact on the local economy.
According to an analyst from KTB Investment & Securities, the restrictions will persuade the tech giants to find suppliers in Korea... which will benefit local companies making related materials.
However, it may not be that easy to find other firms capable of making the materials at a low enough price.
"The reason why Korea didn't look for markets other than Japan is because of cost and technology. Japanese firms like Toshiba and Sharp are among the most powerful companies in the world that are capable of producing items with that level of technology at the current cost. So it is good to solve this trade conflict diplomatically."
Industry sources say, Korea's tech giants are paying sharp attention to the matter...and planning to work with the government to find possible countermeasures.
Ko Roon-hee, Arirang News.
Korean government ministries are responding quickly to these measures from Tokyo.
But still, there are concerns that they will hurt the business of some of Korea's biggest tech companies.
Our Ko Roon-hee takes a closer look.
South Korea's finance chief Hong nam-ki held a meeting with related ministries on Monday... to discuss possible countermeasures to Tokyo's planned export restrictions on Seoul.
And Trade Minister Sung Yun-mo will discuss the details of Japan's move in the trade ministry's meeting this afternoon.
Because Japan's planned restrictions will cover high-tech items necessary for manufacturing semiconductors... there are concerns over whether the restrictions will impact Korea's chip exports, which accounted for one-fifth of the county's total exports in 2018.
Two of the three items announced by Japan are related to semiconductor manufacture.
One is called resist, the thin layer used to transfer a circuit pattern to the semiconductor substrate.
The planned export restriction is likely to affect tech giants like Samsung Electronics and SK hynix...because Japan accounts for about 90-percent of the global production of the item.
The other is etching gas, and Japan produces around 70-percent of total global supply.
One other item, called fluorinated polyimide, is used for making displays used in Samsung and LG's smartphones.
And Japan accounts for about 90-percent of the global supply of this too.
Some analysts are downplaying the possible impact on the local economy.
According to an analyst from KTB Investment & Securities, the restrictions will persuade the tech giants to find suppliers in Korea... which will benefit local companies making related materials.
However, it may not be that easy to find other firms capable of making the materials at a low enough price.
"The reason why Korea didn't look for markets other than Japan is because of cost and technology. Japanese firms like Toshiba and Sharp are among the most powerful companies in the world that are capable of producing items with that level of technology at the current cost. So it is good to solve this trade conflict diplomatically."
Industry sources say, Korea's tech giants are paying sharp attention to the matter...and planning to work with the government to find possible countermeasures.
Ko Roon-hee, Arirang News.