South Korean protesters denounce Japan's new trade restrictions on South Korea in front of the Japanese embassy in Seoul on Saturday. (Photo: AP/ Japan Today)

Stop leaning on Japanese imports, South Korea plans to invest $6 billion in R&D

Faradita Prayusti
Politics & Economic
Economic
Aug 05, 2019
1907
Responding to Japan’s act on removing South Korea from a whitelist of trusted trade partners on last Friday, the country plans to stop depending on Japanese imports. On Monday, Moon Jae-in administration announced plans to invest US$6.48 billion (KRW 7.8 trillion) in research and development (R&D) for the next seven years ahead.

The R&D will focus on local materials, parts as well as tools industry. Cutting reliance on imports from Japan, South Korea is eager to increase “self-sufficiency” in order to maintain supply for the next five years.

The country will self-reliance on 100 main components, materials and tools items used to produce automobiles, electronic products such as batteries and chips and other product.

South Korea wants to change the crisis in materials, parts, and tools sector to be a benefit. according to Industry Minister of South Korea Sung Yun-mo.

Previously on August 2, Shinzo Abe’s administration officially announced that South Korea was no longer listed on Japan’s white list. The decision makes the tension between Seoul and Tokyo getting worsen.

President Moon blamed the Japanese government to make the relationship between both countries worse. An effort to diplomatically solve the dispute has been made by the Korean government and the international community, but apparently, Tokyo ignored it, said Moon cited by the Yonhap news agency at an emergency Cabinet meeting.

According to the Finance Minister of South Korea Hong Nam Ki, Korea will also withdraw Japan from its own “white list” of export partners. However, the minister did not mention further information about its own white list, according to the Associated Press.

Source: https://www.reuters.com/article/us-southkorea-japan-laborers-ministry/south-korea-to-spend-6-5-billion-on-rd-to-cut-reliance-on-japanese-imports-idUSKCN1UV00M

Japan , South-Korea , Korea , White-list , Trade , War , Politics , Economic , Import