South Korea’s trade dependence is 68.8%, 2.4 times that of Japan

South Korean media reported that Korea’s foreign trade dependence in 2017 was 68.8%, 2.4 times that of Japan’s 28.1%. Among them, South Korea’s dependence on exports was 37.5%, Japan was 14.3%, and import dependence was 31.3% in Korea and 13.8% in Japan.

South Korea’s joint news agency pointed out that according to information released by the Korea Trade Association, the International Monetary Fund, and the Statistics Department, South Korea’s dependence on exports is 37.5%, ranking third in the G20 (G20) after the Netherlands and Germany; Japan’s dependence on exports is 14.3%, which is higher in the G20 than in the US, Brazil and India.

According to the report, from the perspective of import dependence, Korea is 31.3% and Japan is 13.8%.

Export dependence is the proportion of total exports to GDP and an indicator of the country’s economy’s dependence on exports. If the dependence on exports is too high, it will be more likely to be affected when the target country’s economy and the global economy are in turmoil.

The report said that the high degree of trade dependence is always the cover of the Korean economy. During the implementation of the Korean War in China and the trade war between the United States and China, the Korean economy has been declining. In particular, South Korea’s three core semiconductor materials with a dependence on Japan of 40 to 90%, when Japan adopts a restraining order, Korean companies need urgent search. Other sources of imports.

On the 8th, the South Korean President, Wen Zai, also hosted the Qingwatai Aides meeting, saying that he hopes that enterprises will get rid of the industrial structure that relies heavily on imports through technology development and investment expansion.

The report said that South Korea’s import and export dependence is declining. Among them, the export dependence decreased from 42.1% in 2008 to 37.3% in 2018. In the same period, the import dependence decreased from 39.5% to 33%.

The report pointed out that the former researcher of the Korea Trade Association, Wen Bingji, said that Japan’s trade volume is larger than that of South Korea, but the domestic demand market is stable and its dependence on foreign countries is low. South Korea needs diversified import and export pipelines to reduce external dependence through domestic production of raw materials and components.

Credit : https://www.cna.com.tw/news/aopl/201907180052.aspx

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