TOKYO (majiriox news) — There is widespread fear throughout Korea’s industry that the vital parts and materials imported from Japan that Korean industry is reliant on will face inevitable stoppages and bottlenecks. Although the Korean economy is powerfully driven by exports, the most vital parts and materials are in many cases imports from Japan. The Korean government is laying plans to assure, as much as possible, a steady flow of all vital parts and materials.
Korea ran a trade deficit with Japan in 2010 of approximately $30 Billion. Transistors, electronic sub assemblies, chemicals, car parts and materials are all imported from Japan as well as high tech production machinery and in many instances incorporated into finished products exported from Korea. When Korean exports increase, the suck in increasing amounts of Japanese made parts and materials. For this reason, any interruption of the smooth flow of parts and materials from Japan would inevitably result in slow downs and production stoppages in Korean industry.
Industrial experts speaking on Korean TV expressed serious concern about the situation.
” Electronics firms which are totally reliant on Japan for cutting edge high tech parts may be facing a heavy blow.” Export industries are also carefully monitoring the situation in Japan.”
On March 12, the Korean government called a special meeting of the Cabinet to explore the possible effect on Korea’s economy from the natural disaster in Japan. A Korean government spokesman announced at the conclusion of the meeting, “To a large degree, most industries have sufficient inventory to tide them over for the time being, but if blockages in the supply chain continue for any length of time, the possibility emerges that the effect will certainly be strong felt in some industrial sectors.”