Dependence on Japan has decreased slightly, but
Imports from China increased by 28% last year
Expert “Government, for business growth
We must hurry to prepare measures for protection and nurture”
[e대한경제=안종호 기자] After the Japanese government took measures to restrict exports of essential items such as semiconductors and displays to Korea in July 2019, the Korean government tried to grow domestic companies, but only the domestic market share of Chinese companies increased. As advanced countries such as the United States and China are expanding protectionism to protect their own companies, some point out that the Korean government needs to create conditions for domestic companies to grow, such as reducing subsidies for overseas companies.
According to the Ministry of Trade, Industry and Energy on the 19th, the total export amount of materials, parts and equipment (minister manager) until July this year was 215.1 billion dollars and imports were 152.653 billion dollars. Until July of this year, the trade balance in the field of ministries recorded a surplus of $62,44,941 million.
However, thanks to the Korean government’s efforts to secure a variety of supply chains at home and abroad after Japan’s export control measures, its dependence on imports from Japan has decreased. In July 2019, the Japanese government imposed export restrictions on key semiconductor and display equipment such as photoresist, polyimide fluoride, and hydrogen fluoride in retaliation after the Korean Supreme Court ruled that compensation for forced labor during the Japanese occupation was necessary.
Accordingly, the Korean government has been striving to achieve a trade surplus by promoting technology development, diversification of import sources, and fostering competitiveness in order to reduce dependence on Japan in the field of small intestine management. As a result, the proportion of imports from Japan to Japan is gradually decreasing from 17.2% (US$34 billion) in 2020 to 15.8% (US$39.3 billion) in 2021 and 15.3% (US$22.3 billion) as of July this year.
Initially, it was the government’s plan to localize Korean companies by making achievements in the small department management field, but in reality, it is producing results that are only double that of Chinese companies. The amount of imports from China in the field of small intestine management jumped from 27.4% (US$54.2 billion) in 2020 to 28.6% (US$71 billion) in 2021. It has already recorded 29.5% ($45.1 billion) in January and July of this year, and it is predicted that by the end of the year, the amount of income from the general public will increase to about $77 billion.
It is pointed out that the government focused on reducing its dependence on Japanese imports and neglected to reduce its dependence on China. An official from a private economic research institute said, “Because there are many specialized fields in the field of sub-ministers, it is difficult to obtain perfect results within two to three years of the start of the support policy. It is urgent for the state to take measures to protect and nurture domestic industries until the
Reporter Ahn Jong-ho joh@
〈ⓒ e-Korea Economic Daily (www.dnews.co.kr), unauthorized reproduction, collection, and redistribution is prohibited〉