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Chemical Industry Most Dependent on Japanese Materials and Components
Korean Industries Vulnerable to Japan's Economic Retaliation
Chemical Industry Most Dependent on Japanese Materials and Components
  • By Jung Suk-yee
  • July 25, 2019, 08:58
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Among South Korean industries, the chemical industry is found to be the most dependent on Japanese materials and components.

The South Korean chemical industry’s degree of dependence on Japanese materials and components is as high as 55.6 percent, followed by automotive (36.9 percent), steel (34.6 percent) and semiconductor and display (29.2 percent), according to data from the Ministry of Trade, Industry and Energy released by Liberty Korea Party lawmaker Kim Kyu-hwan on July 24.

The lawmaker, who is a member of the Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly, said that South Korean shipbuilders use European materials and components in many cases and their dependence on Japanese materials and components is less than 20 percent. 

“South Korean industries’ average degree of dependence on Japanese materials and components is more than 33 percent and this is a very high level,” said an industry expert, adding, “Japan’s economic retaliation will have a significant impact on the industries with time.”

“Original technologies in the fields of semiconductor, display, machine tool and robotics can be obtained through long-term research, and yet the South Korean government has paid little attention to small and medium-sized enterprises’ technologies that can be commercialized,” the lawmaker remarked, continuing, “The government has to accurately analyze South Korea’s technological dependence on Japan in dealing with Japan’s economic retaliation.”