Dependence on Imports of Materials and Components from Japan Hits Record Low of 15% from January to April This Year

(Photo) [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] The dependency on Japanese imports in the materials and components sector has dropped to an all-time low. This is interpreted as a result of efforts by the Korean government and companies over the past two years to strengthen competitiveness and stabilize supply chains in the materials and components field, following the export restrictions imposed in July 2019.

According to the Ministry of Trade, Industry and Energy's 'Materials and Components Integrated Information Network' on the 3rd, among Korea's cumulative imports of materials and components totaling $64.795 billion from January to April this year, Japanese products accounted for $9.696 billion, or 15.0%.

The import share of Japanese products decreased by 1.1 percentage points compared to the same period last year (16.1%). This is the lowest level since related statistics began to be compiled in 2001.

The share of Japanese materials and components imports reached 28.0% in 2003 but gradually declined, recording 18.2% in 2014, remaining in the 17% range before falling to 15.9% in 2019.

Meanwhile, the import share from Taiwan increased from 8.3% last year to 9.3% this year. The share of imports from China also grew from 29.1% to 30.1%.

However, Korea's trade deficit in materials and components with Japan has further expanded. Korea posted a trade deficit of $5.396 billion with Japan in materials and components from January to April this year, an increase of $709 million compared to the same period last year.

This is because imports from Japan increased more than exports. Korea exported $4.3 billion to Japan, up 6.2% from last year, but imports ($9.696 billion) were more than twice the export value. By item, the deficit was large in electronic components ($1.92 billion), general machinery parts ($6.44 billion), chemical substances and chemical products ($1.31 billion), and rubber and plastic products ($578 million).

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