This report aims to compare the current state and characteristics of component exports to the U.S. by Korea and Japan, and to use the implication to seek out measures to increase Korea’s export of components to the U.S. market.
The total amount of Korea’s component exports is about one thirteenth that of Japan, and the share of components in Korea’s total export of goods lies at a mere 10.5%, less than half that of Japan, which is 22.5%. In 1986, the total amount of Korea’s components export to the U.S. was 10.3% that of Japan, and especially in the case of automobile parts, the amount stays only at 1.3% of Japan’s corresponding amount. While Japanese products account for about 30% of the total annual components import worth almost $40 billion by the U.S., the Korean component goods score only 3.1%. Although Korea’s electronic parts perform well, taking 7.5% of the U.S.’s components import market, the other components, such as those for automobiles or machinery, are staying far behind.
In the case of machinery components, Korea, compared to Japan, has a competitive edge in the U.S. market for simple assembly goods or basic parts, which are mostly labor-intensive, while Korea falls behind Japan in capital/technology-intensive core components. Regarding automobile components, Korea does better than Japan with simple and basic parts used for repairs, where competitiveness is mainly driven by price, while Korea has a lower edge in assembly markets. Especially with core components for car-making, Korea stays far behind Japan in every important aspect including price, quality, and marketing. In the case of electronic components, Korea leads Japan with parts for household appliances, which are Korea’s major export items, while the opposite is the case with components for state-of-the-art products and industrial machinery, where rapid technological innovations occur.
The U.S. components market is turning to Original Equipment Manufacturing (OEM) for less standardized goods. The components produced through OEM account for more than 60% of the total trade volume of parts in the U.S. Increasingly higher proportions of major parts, or even semi-finished products are being imported from outside of the U.S. Japanese producers are meeting this demand by providing well-organized market services and high quality, and by expanding local production through direct or joint investments.
Korea needs to pick and promote promising items and to build consumers’ confidence in the quality of their products through continuous technology development. It also needs to establish long-term strategies, boost efficiency based on a step-by-step approach, and implement marketing plans which incorporate component-specific commercial practices and characteristics of different distribution channels.
우리나라와 일본의 대미부품수출 비교분석
서울 : 산업연구원
|Subject Country||Japan(Asia and Pacific)
South Korea(Asia and Pacific)
|Subject||Economy < Trade|
|Holding||KIET; KDI School|