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S.Korea's chip, display panel, machinery to be hit hard by Japan's export curbs

Source: Xinhua| 2019-08-22 16:05:03|Editor: xuxin
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SEOUL, Aug. 22 (Xinhua) -- Japan's export curbs would hit South Korea's semiconductor, display panel and machinery industries hard, a central bank report said Thursday.

Japan's worsening export restrictions would negatively affect the chip, flat screen and machinery sectors, according to report that the Bank of Korea (BOK) submitted to the parliamentary economic committee.

Japan removed South Korea earlier this month from its whitelist of trusted trading partners, after tightening control last month on its export to South Korea, including three materials crucial for the production of memory chips and display panels. In response, Seoul dropped Tokyo off its whitelist of trusted export partners.

The BOK said Japan's export curbs had a limited impact on the South Korean economy until now, but it noted that if the situations aggravate and the supply of parts and materials are disrupted, it could have a greater impact than the tariff hike.

The bank warned that if Japan's export restrictions are prolonged, the development of new growth engines such as non-memory chips and environmentally-friendly cars could be delayed.

It added to the existing global economic uncertainties such as the global trade dispute and the possible British exit from the European Union (EU) without a deal, the BOK added.

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