Concerns Over a Second Urea Solution Crisis... 8 Out of 10 Key Korean Imports Are Made in China
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172 out of 228 Key Imported Items Are Made in China
Eight out of ten key industrial materials in the Korean economy were found to be of Chinese origin. There are concerns that excessive concentration could lead to a 'second Dosu crisis.' Given the ongoing global supply chain disruptions, there are calls to address the 'concentration issue' on China.
The Federation of Korean Industries released a report titled "Status and Implications of Key Industrial Materials in the Korean Economy" on the 30th, commissioned to Professor Choi Nam-seok of the Department of Trade at Jeonbuk National University.
The report defined 228 items as "key imported items requiring management," which are items with an import dependency rate of over 90%, absolute inferiority in import competitiveness, and fall within the top 30% in terms of import value. The analysis showed that among the 228 items, 172 (75.5%) were Chinese-made. Japanese products accounted for 32 items (14.0%), and American products accounted for 24 items (10.5%).
The key Chinese-imported items requiring management included industrial raw materials such as electrical products, machinery and computers, steel, organic and inorganic compounds, glass, medical supplies, and non-ferrous metals. Specifically, manganese, an essential material for steel manufacturing; graphite, a critical raw material used in the anode of electric vehicle batteries; and magnesium, a major material for automotive lightweighting, were identified as representative Chinese-imported items.
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In the event of export restrictions on these items due to future trade disputes with China, significant damage to all industries in the Korean economy would be inevitable. Professor Choi advised, "If supply management of key imported items is not maintained, supply crises like the Dosu crisis could occur at any time," and recommended, "A continuous monitoring system should be established, and measures such as diversification of imports should be taken."
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