Japanese Menace
A forecast from the Korea Trade Insurance Association (KTIA) export market outlook survey warned against exporting to the Japanese market this year. The survey was conducted with the cooperation of 14 overseas offices, and cited market volatility stemming from the rapidly-depreciating yen and the appreciation of the dollar resulting from the tapering of Quantitative Easing as factors.
In particular, the survey expressed alarm about Japanese-bound export industries such as farming and fishing. Also, industries that are in direct competition with Japan such as automobiles, electronics, and semiconductors were reportedly put on the alert list.
Song Yeon-jae, manager of the Tokyo office, said, “With the Japanese government expected to push forward the yen’s depreciation, reciprocal appreciation of US dollars has led to the further downward spiral of the yen.”
KTIA raised a red flag about trading with developing countries such as Indonesia and Brazil, as well as political instability and worsening economic conditions.
The survey was conducted with small and medium-sized companies in mind, to give them get a clear picture of market conditions overseas.