South Korea: Lack of core raw materials continues: Samsung, SK, LG, Hyundai
-Possibility of a second shortage of raw materials-
-2022 “Danger signal” to Korean companies-
LG Economic Research Institute:
December 15th, “2022 Domestic and Domestic Economic Outlook”
“The risk of supply disruptions, such as the urea water scarcity turmoil, is expected to continue next year,” he warned.
Samsung / SK / LG / Hyundai Cars:
Semiconductors, batteries, automobiles, etc. operated by major Korean corporate groups.
Raw material supply network of core industry:
Due to external factors such as the US-China trade dispute and the coronavirus
The analysis says that the raw material supply network is likely to continue to be threatened.
Increasing dependence on China:
South Korea is becoming more dependent on China for its raw materials.
Semiconductor industry:
Semiconductors that Samsung Electronics and SK Hynix are the mainstays.
Battery industry:
Batteries for LG Energy Solutions, Samsung SDI, SK Innovation, etc.
It is pointed out that if China becomes interested in it, it could disturb the Korean industry.
lithium
Semiconductor and rechargeable battery related industries
magnesium
Steel, shipbuilding, displays, automobiles, home appliances
The material is related to Korea’s main industry.
Korea Trade Association:
Tungsten trioxide:
Tungsten oxide is used in the manufacture of semiconductors and medical devices due to its photocatalyst and light emission characteristics.
Until September this year, it imported $ 567.5 billion, and its dependence on China was 94.7%.
Lithium hydroxide:
Lithium hydroxide for secondary batteries is highly dependent on China at 83.5% ($ 363.7 million).
Magnesium ingot:
Magnesium ingots required for seat frames for automobile bodies and aircraft.
We rely 100% on imports from China.
Ministry of Trade, Industry and Energy:
Manage items that are highly dependent on the outside world.
Operate an “early warning system (EWS) that can grasp risk factors in advance” for 4000 items such as tungsten.
Korean newspaper / economy