Impact on global supply chain : Rajiv BISWAS, Chief Economist IHS Markit

2019-07-25 3

While South Korean tech giants, such as Samsung Electronics, SK Hynix and LG Display, are likely to be hit hardest by the move in the short term, you’ve said Japan may suffer in the long term as such companies will be forced to rethink their reliance on Japanese part. Why is that?

Tokyo said it plans to strip South Korea off some preferential treatment in its trade ties with Japan. Such a move, which is expected by August, would involve removing South Korea from a "white list" of countries deemed trustworthy by Japan.
What would that mean for SK and Japan?

Could there be a contagion effect - can the the U.S. and China also feel the pain given that both countries rely on supplies from South Korea?

How can this issue be resolved?