[Exclusive] "Korea Doesn't Invest and Makes It Expensive"... 98% of Robot Drive Components Depend on Japan [Future Materials and Components Dependency]

80.3% Dependence on Foreign Drive Components
Sensor and Control Parts Shift from Japan to China
Korean Robot Industry Worth 5.9 Trillion Won, but Lacks Domestic Component Supply

Although the use of robots is rapidly increasing across various industrial sites in South Korea, it has been revealed that most of the core components that power these robots are still heavily dependent on foreign imports. Concerns are being raised that sourcing robot parts-considered a future industry-from Japan and China may undermine the competitiveness of South Korea’s industrial sector.

Inside view of a store in the Huaqiangbei component market, Futian District, Shenzhen, China, visited by a reporter on August 18. Photo by Park Juni.

According to data requested by Assemblyman Lee Jaegwan of the Democratic Party from the Ministry of Trade, Industry and Energy, as of 2023, the overseas dependency rate for drive components used in domestic industrial robots reached 80.3%. This figure is higher than the 77.7% recorded in 2021, two years prior. Among these, the vast majority of imported drive components (97.8%) originated from Japan. Drive components, which include motors, reducers, and drives, are the most critical parts responsible for moving robot joints.

For other components, dependency has recently shifted from Japanese products to Chinese products. Sensor components, such as camera modules, torque sensors, and encoders-which serve as the eyes and ears of robots-were imported at a rate of 51.5% from countries like China and Japan. Compared to 2021, reliance on Japanese products decreased (from 74.3% to 43.1%), while the share of Chinese products more than doubled (from 23.2% to 48.4%). For control components, Japanese products accounted for the highest share in 2021 (57.3%), but by 2023, Chinese products dominated the market (95.8%).

Industrial robots are already being utilized in various domestic industrial sites. According to the Ministry of Trade, Industry and Energy in 2023, the total sales volume of the domestic robotics industry reached approximately 5.9805 trillion won, a 1.5% increase compared to the previous year. About half of this amount was attributed to industrial robot sales. While demand for robots is rising rapidly, most of the detailed components are still being sourced from overseas.

As a result, not only are foreign component suppliers benefiting, but domestic robot manufacturers are also facing increasing burdens. Because the supply chain is small, it is difficult to procure components in large quantities, making it impossible to reduce prices. Consequently, domestic manufacturers turn to foreign suppliers for parts even in the early stages of producing small quantities of research robots. Notable examples include Japanese reducer companies such as Harmonic Drive and Nabtesco, as well as Chinese controller and sensor companies such as Inovance and Slamtec.

Heo Jeongwoo, Chief Technology Officer (CTO) of Rainbow Robotics, pointed out, “Since gears, motors, and sensors inside robots have not been localized, we inevitably end up making our products more expensive than those from other countries. For domestic companies to manufacture these components, what is ultimately needed is materials and equipment. However, there are no companies in South Korea that produce these materials and equipment, nor is there any investment in this area.”