[Financial Channel/Comprehensive Report]South Korean President Yoon Seok-yue will visit Japan on March 16, laying a solid foundation for the alliance between the two countries, which will make China feel bad. As far as semiconductors are concerned, Japan and South Korea broke the ice and joined the US camp, coupled with the help of the Netherlands. South Korean scholars believe that China’s semiconductor supply chain will be marginalized and more isolated.
South Korean President Yoon Suk-yue recently announced that South Korea will no longer require Japanese companies to compensate South Korean victims of forced labor during World War II as one of the most important measures to improve relations between the two countries. Instead, Seoul will create a government fund to pay victims directly.
Breaking the ice between Japan and South Korea is particularly important for Beijing. Moreover, South Korean President Yoon Seok-yue will also visit Japan on March 16 and hold talks with Japanese Prime Minister Fumio Kishida. The Japanese government also revealed that it is coordinating to invite South Korean President Yoon Seok-yue to attend the expanded meeting of the G7 summit held in Hiroshima in May.
The South China Morning Post reported that Yin Xiyue became the first South Korean head of state to visit Japan in 12 years. It is expected that Yin Xiyue will also persuade Tokyo to cancel the export control of South Korea’s chip manufacturing materials and coordinate the positions of Japan and South Korea in the supply chain.
Park Ki-soon, former vice president of the Samsung Economic Research Institute and president of the China Samsung Economic Research Institute, and now a senior consultant at Dentons Lee Law, said bluntly that Yoon’s visit to Korea is expected to lead to Japan-South Korea reconciliation and accelerate The process of China’s marginalization in advanced production and global supply chains.
Park Ki-sun said that global semiconductor production is dominated by countries such as the United States, Japan, Taiwan, and South Korea. The semiconductor supply chains of these countries will become more stable, and China will be isolated.
Kim Dae-jung, a business professor at Sejong University in Seoul, also said that if the relationship between Japan and South Korea is normalized, it will greatly help South Korea to import semiconductor materials, parts and equipment, and the trade between the two sides is expected to return to the level before 2019.
However, the decoupling of South Korea and China is expected to suffer huge losses. Kim Dae-jung said that chips account for 20% of South Korea’s total exports, 60% of which are exported to China. If South Korea follows the United States, the investment in China may lose as much as 50 trillion won.
Take the pulse of the economy with one hand
Click me to subscribe to Free Finance Youtube Channel
No need to smoke, no rush, now use the APP to watch the news and guarantee to win the lottery every dayClick me to download APP
According to how I see activities
