Reliance on Japan Falls to All-time Low

South Korea has become less reliant on materials, components and equipment from Japan.

The Ministry of Trade, Industry and Energy announced on Sept. 8 that South Korean material, component and equipment manufacturers’ reliance on Japan was an all-time low of 15.8 percent in the first seven months of this year.

“In that period, their exports to Japan totaled US$8.4 billion, up 13.2 percent from a year ago,” it said, adding, “Primary metal product and electronic component exports increased 43.8 percent and 20.9 percent, respectively.”

In that period, their imports from Japan increased 16.2 percent to US$22.2 billion and semiconductor and display equipment imports and electrical equipment and component imports in particular increased 35 percent and 25.3 percent, respectively. South Korea’s trade deficit with Japan in the sector was US$13.8 billion, up 17.9 percent from a year ago.

The manufacturers’ total exports hit a 10-year high of US$203.2 billion, up 23.3 percent year on year. Their total imports increased from US$112 billion to US$140.5 billion, led by display equipment imports (up 62.6 percent year on year) and primary metal product imports (up 53.5 percent year on year). South Korea’s trade surplus in the sector increased 18.8 percent year on year to US$62.7 billion from January to July.

“The industry showed an average annual export increase of 2.5 percent and an average annual import increase of 2.7 percent while all industries of South Korea showed 1.3 percent and 1.1 percent, respectively,” the ministry explained, adding, “The component segment of the industry accounted for approximately 60 percent of the total exports from the industry and the ratio is falling with the other two segments growing fast.”

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