[Q&A] "Vehicle Semiconductor Supply Disruption Raises Concerns Over Partial Negative Impact on April Car Exports"

[Sejong=Asia Economy Reporter Joo Sang-don] Moon Dong-min, Director of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, stated on the 1st, "From April, some impact due to supply disruptions of automotive semiconductors is a concern."

Director Moon said at the 'March Export-Import Trends' briefing held at the Government Complex Sejong, "So far, the impact on finished car exports is understood to be not significant."

He explained, "The specific required scale and duration of (automotive semiconductor) needs will be concretely influenced by the demand and supply situation of global finished car manufacturers, which is a cause for concern. The government will provide various supports to minimize the impact of parts supply disruptions on our exports, such as expedited customs clearance of related parts and exemption from self-quarantine for business activities to secure parts."

The following are the main Q&A highlights between Director Moon and the press corps.

▲ The total trade volume combining March exports and imports exceeded 100 billion dollars. How do you evaluate this?

= Industrial production and related indicators have been difficult until now, but recently they have shown signs of recovery. In addition, the global trade market is also recovering. From this perspective, domestic industrial production and overseas trade are actively taking place. The outlook and conditions are not bad, so it is expected to greatly help the real recovery of our economy.

▲ The export performance up to March this year is better than the forecast made at the end of last year. What positive and negative factors could affect our exports going forward?

= The recovery of global trade is a positive factor. Also, the global semiconductor market seems to continue its boom. Furthermore, the rise in international oil prices is positively affecting our exports, so these favorable conditions are indeed forming. However, the speed of recovery from COVID-19, the continuation of protectionism, and risks related to logistics and parts procurement remain uncertainties in the external environment. From the government's standpoint, we will actively resolve difficulties faced by export companies and strive to maintain the momentum of this rebound.

▲ What impact will the Suez Canal incident have on our exports going forward?

= I think the impact of the Suez Canal incident on our exports was somewhat limited. Exports to the European Union (EU) in March showed a significant growth of over 30%. However, due to this incident, there are concerns that shipments to the EU might be delayed by about 1 to 2 weeks. I am not pessimistic about how this situation will unfold. However, our shipping freight rates are increasing, and securing shipping capacity is an issue. I believe efforts should be made to properly transport maritime cargo rather than focusing solely on the Suez Canal's impact. Through the Export-Import Logistics Support Center, we are monitoring export trends daily. We will make efforts to prevent export disruptions to the EU by deploying temporary vessels, prioritizing vessel allocation to small and medium enterprises, and providing freight support.

This content was produced with the assistance of AI translation services.