According to Pulse by Maeil Business News Korea,

South Korea has managed to lower its reliance on Japan for imports in core materials, parts, and equipment for high-tech device production since export curbs were introduced in 2019.

According to the Ministry of Trade, Industry, and Energy (MOTIE) on Monday, the share of reliance on Japan on 100 materials, parts, and equipment necessary for tech products came down to 24.9 percent in 2021 from 30.9 percent.

Reliance on hydrogen fluoride, EUV photoresists, and fluorinated polyimides which go to wafer fabrication and made the centerpiece on Tokyo’s curbs on exports to South Korea from July 2019 came down notably.

Imports of hydrogen fluoride, a key chemical for chipmaking, decreased from $36.3 million in 2019 to $12.5 million last year. In the case of EUV photoresists for next-gen chipmaking, the share of Japanese imports dropped under 50 percent.

Korean producers no longer have to rely on Japanese fluorinated polyimides, the ministry found.

The government has gone all-out to seek other importing channels and localize the product after Tokyo enforced the curb in shipments to South Korea amid row over wartime labor compensations.

Youlchon Chemical, a packaging materials manufacturer, was cited as the exemplary case.

The company succeeded in localizing lithium-ion battery pouches for electric vehicles through its partnership with domestic secondary battery makers. Youlchon also developed pouch production equipment, resulting in a maximum production capacity of 100 million square meters per year. The battery pouch, the exterior material that protects secondary batteries, is manufactured through surface treatment, lamination, and coating processes on an aluminum-plastic film.

Youlchon Chemical’s shares were up 1.06 percent to 23,900 won on Monday.



By Lim Young-sin, Woo Soo-min and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (February 28, 2022)