U.S. sanctions on China's semiconductor industry are causing major shifts in the global supply chain, affecting South Korea's industry due to its reliance on Chinese manufacturing. The Biden administration's increased sanctions, combined with global trends towards semiconductor self-sufficiency, are putting South Korea's semiconductor position at risk. Countries such as the U.S., China, and Japan are building up their domestic semiconductor industries, potentially affecting South Korea's position in the global market. Deeply integrated with China, Korean companies, face the challenge of reducing this dependence and adapting to the evolving supply chain landscape.
This brief explores the shifting global trade landscape characterized by weakening globalization and rising protectionism, exacerbated by events such as the US-China trade disputes, COVID-19 pandemic, and Russia's invasion of Ukraine. It discusses how these factors have prompted a trend towards 'Open Strategic Autonomy' (OSA) in the European Union (EU), as evidenced by newly suggested industrial and trade policies. The EU's experiences during the pandemic and energy dependence on Russia have emphasized the need for resilient supply chains. The analysis draws from Jang et al. (2023) to examine how the EU's OSA has evolved in response to these changes, offering insights for policy implications for Korea.
While the United States, China, Japan, and other established economic and cultural partners traditionally dominate the discourse when considering Korea's international relations, a vast potential for collaboration lies untapped with India. This South Asian nation, with the world's largest population and impressive economic growth, holds great promise for future engagement despite the current limitations in economic, cultural, and diplomatic interactions.
This article explores the challenges and transformations in global economic governance, particularly in the context of China's rise, widening trade disputes, and the retreat of globalization.
The commencement of the ASEAN Economic Community (AEC) in 2015 marked a significant milestone for the Association of Southeast Asian Nations (ASEAN). Following this initiation, the ASEAN Economic Community Blueprint 2025 was unveiled, followed by the launch of the ASEAN Community in 2025 Consolidated Strategic Action Plan (CSAP) in 2017.
KIEP Opinion
- From Historical Ties to Shared Future: Strengthening Korea-India Cooperation for Growth and Sustainability 새글 2024.03.14
- Building Bridges: The Republic of Korea's Approach to Regulatory Convergence with ASEAN 새글 2024.03.06
- How to Boost Social Values for Entrepreneurs in International Development 2024.02.22
- Projection of China’s National Strategy on its ODI 2024.02.07
- Taiwan's Election and the Outlook for Cross-Strait Relations 2024.01.26
World Economy Brief
- Analyzing South Korea’s Semiconductor Industry: Trade Dynamics and Global Position 새글 2024.03.19
- EU's “Open Strategic Autonomy” and its Implications for Korea 새글 2024.03.19
- Korea’s Global Value Chain Strategies amid Rising Trade Disputes 새글 2024.03.14
- Japan’s Supply Chain Policy and its Implications for South Korea 2024.02.22
- Assessing ASEAN Economic Integration Progress and South Korea’s Approach Focusing on TBT and SPS 2024.02.14
KIEP News
- 2024 KOPEC Asia-Pacific Strategy Forum 2024.02.26
- The 1st Annual Meeting of the 2024 KIEP Research Advisory Committee 2024.02.22
- KIEP Awards the 21st EAER Best Paper of the Year 2024.01.15
- Visiting Scholar’s Seminar with Professor Mohammad Sharif Karimi from Monash University, Malaysia 2023.12.28
- 2023 IEFS-EAER-APAEM Conference 2023.12.21
KIEP Video Report
Why South Korea Can Open Up Its Financial Markets Despite the Trauma of the Asian Financial CrisisKIEP Video Report
“The Precision-Guided Weapon of the 21st Century” – How Are the U.S. Financial Sanctions Possible And What Is the Mechanism Behind Their Effectiveness?EAER
EAER Vol.27, No.4 (December 2023)
more- The Impacts of Climate Variability on Household Consumption: Evidence Based on Village Weather Data in Indonesia
- The Ebb and Flow of Regional Integration Vision in Asia-Pacific: From A Lens of Leaders’ Declarations over 30 Years
- Business Cycle Synchronization between the European Union and Korea
- The Effects of Policy Funds on the Investment and Management Stabilization Financing of Small- and Medium-sized Enterprises
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