Current Japan and South Korea Economic Situation

written by 20814 Park Chae-Rim

Japanese export regulations have been going on for more than a year. So far, the situation is ironic. It is larger than the one affected by the regulation. The Korean industry is said to have minimized the damage by responding quickly. 

On July 4th last year, Japan's Ministry of Economy and Industry strengthened its review of exports of three critical materials for semiconductors and displays. In August, Korea was excluded from the whitelist list.

The Korean domestic industry was put on alert. In addition to the three materials, there were still many areas that relied heavily on Japan. However, the government, businesses and research institutes have found a solution. So far, they are conducting business without much damage. 

Although there are still many cases of using Japanese products, Japanese companies are trying to reach out first as South Korean customers account for a large portion of their sales. On the contrary, Japanese companies are suffering from poor performance. 

The aftermath continues not only last year but also this year when export regulations began. Some companies saw their sales drop 15-25 percent year-on-year.

However, the situation in the future is also formidable. Concerns are being raised about secondary export regulations. Through this experience, Koreans have developed the power to overcome even if a second or third export regulation occurs.