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Researchers work in a lab at the Korea Institute of Science and Technology in Seoul. (Yonhap News)

South Korea's dependence on Japan in the area of materials and components has fallen to its lowest level in history, statistics show.

The decline is seen as the government and businesses' efforts to stabilize the materials and components supply chain in the wake of controls imposed on exports to South Korea by Japan in July 2019.

According to an examination Thursday of figures from the South Korean Ministry of Trade, Industry and Energy (MOTIE) materials and components information network, Japanese products accounted for US$9.696 billion of South Korea's cumulative components and materials imports of US$64.795 billion between January and April of this year, or 15.0%.

Down 1.1 percentage points from 16.1% during the same period last year, the rate is the lowest since related statistics were first tallied in 2001. The percentage of components and materials imports from Japan peaked at 28.0% in 2003 before falling to 18.2% in 2014 and 15.9% in 2019.

Meanwhile, the proportion of imports from Taiwan climbed from 8.3% last year to 9.3% in 2021, while the proportion from China rose from 29.1% to 30.1%.

In response to Japan's export controls, the South Korean government announced measures to boost competitiveness in the areas of materials, components and equivalent and began work on supporting and investing in development of domestic technology and diversifying supply chains.

The approach has resulted in new domestic production of semiconductor equipment and greater diversity in import sources for key items.

The deficit with Japan in components and materials trade was found to have grown, with South Korea registering a deficit of US$5.396 billion in components and materials trade with Japan between January and April. The number was up by US$790 million from the same period in 2020.

South Korean exports to Japan were valued at US$4.3 billion, an increase of 6.2% from last year. Imports were valued at US$9.696 billion, or more than double the value of exports.

By area, the largest deficits were observed for electronic components (US$1.92 billion), general machinery components (US$6.44 billion), chemicals and chemical products (US$1.31 billion) and rubber and plastic products (US$578 million).

As of April, the total trade deficit with Japan for the year stood at US$7.894 billion.

By Kim Young-bae, senior staff writer

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