The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Family of five found dead in Incheon

  • 3

    INTERVIEW'The Glory' actress Lim Ji-yeon says she wanted everyone to hate her character

  • 5

    Post-Colonialism and BTS

  • 7

    Grandson of Chun Doo-hwan hospitalized after using drugs on livestream

  • 9

    Koreans wish to work less than 40 hours per week: survey

  • 11

    Apple Pay's imminent launch in Korea draws mixed responses

  • 13

    Amorepacific President Lee Dong-soon vows to bolster presence in ASEAN, Japan, US

  • 15

    Turkish president supports Finland's NATO bid

  • 17

    Stocks fall to cap chaotic week driven by fears about banks

  • 19

    Kremlin dismisses ICC warrant for Putin

  • 2

    Malaysia looks east to Korea for future economic growth

  • 4

    BTS member Jimin's single tops iTunes charts in 110 countries

  • 6

    Yoon faces strong political backlash after Tokyo summit

  • 8

    Mask mandate on public transportation to end Monday

  • 10

    Centre Pompidou's Korean branch to open in 63 Building

  • 12

    Political divide intensifies in Korea over Yoon-Kishida summit

  • 14

    ICC issues arrest warrant for Putin over Ukraine war crimes

  • 16

    ANALYSISYoon-Kishida summit may 'raise ceiling' for trilateral cooperation with US: expert

  • 18

    US House Foreign Affairs Committee members to visit Seoul next month

  • 20

    NK claims almost 800,000 people have signed up for military to fight against US

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
Mon, March 20, 2023 | 19:23
Companies
Brexit to exert mixed influence on Korean industries
Posted : 2016-06-28 14:16
Updated : 2016-06-28 15:05
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Choi Sung-jin

The yen's value is soaring amid the global financial turmoil caused by Britain's decision to leave the European Union, as investors turn to safe assets.

The Japanese currency, which had remained strong in the wake of the 2008 global financial crisis, turned downward with the inauguration of the Shinzo Abe administration and has remained relatively weak. Immediately after the Brexit vote, however, it went from 105 yen to 100 yen against the U.S. dollar.

For Korean exporters, the yen's strength is good news because it pushes up the price of Japanese products competing with Korean goods in international markets, weakening the former's price competitiveness.

The overall impact of Brexit on Korea's industry will be more mixed, though, experts said Monday.

One of the biggest beneficiaries from the Brexit-caused strength of the yen will be the auto industry. According to a report released by the Korea Institute of Industrial Economics and Trade last year, the export similarity index of Korea and Japan -- which measures the similarity of the two countries' export structure -- steadily rose from 45 in 2007 to 48.3 in 2014. The auto industry's export similarity index was highest of all, with 69.

It was Japan's transportation equipment industry -- including its carmakers -- that was hit relatively hard during the era of the strong yen, which continued for years after the global financial crisis, according to a report by the LG Economic Research Institute. Between 2008 and 2011, Japanese transportation equipment makers suffered the sharpest profitability decline of 6.4 percent compared with their global competitors, followed by chemical (-4.3 percent) and electric-electronic industries (-2.6 percent).

Brexit gives wake-up call to politicians here
2016-06-28 19:01  |  National
Uncertainties keep market volatile
Uncertainties keep market volatile
2016-06-27 17:16  |  Economy
BOK under pressure to cut key rate further
BOK under pressure to cut key rate further
2016-06-27 17:15  |  Economy
Park calls for crisis management
Park calls for crisis management
2016-06-27 17:55  |  National
Reflecting the expectations about enhanced export competitiveness of Korean vehicles, auto-related shares, including Hyundai Motor and Kia Motors, rose simultaneously at the Seoul bourse Monday.

"There have recently been some downsides in competing with Japanese cars in international markets because of the yen's prolonged weakness," said an official at Hyundai Motor Group. "If the yen remains strong, price competitiveness of our products will go up." The yen's strength will also be good news for domestic auto parts makers for different reasons, because many gave up their supply plans to Japanese carmakers because of the yen's weakness, he said.

Most other industries are more concerned about declining demand, however, as Brexit may postpone the recovery of the already sluggish global economy.

"Shipbuilding exports to Europe are expected to fall considerably, affected by the economic slowdown on the continent because of Brexit," said Shim Hye-jeong, a researcher at the Institute of International Trade. "Some industries, including shipbuilding, are affected more by demand than price competitiveness.

Steelmakers do not regard the yen's strength as so favorable a factor either because their profitability is influenced more by the won-dollar exchange rate than won-yen parity rate. "We make dollar-based contracts of raw material purchases and the value of the dollar also rose," an industry executive said.

For Korean industries to enjoy export growth because of the yen's rise, it is important the global economy does not fall deeper into a slump, experts said.

"Some industries directly competing with Japanese products in overseas markets can benefit from the yen's rise," said Ryu Seung-min, another researcher at the Institute of International Trade. "If the global economy retreats to another setback, however, such benefits will be limited."

Shin Min-young, a fellow at the LG Economic Research Institute, said the Japanese currency's influence on domestic exporters has dwindled. "It remains to be seen whether and how much influence the yen's rise will exert on Korea's exports at a time of increased uncertainty in the global economy caused by Brexit," Shin said.

Emailchoisj@ktimes.com Article ListMore articles by this reporter
 
LG Group
Top 10 Stories
1Yoon faces strong political backlash after Tokyo summit Yoon faces strong political backlash after Tokyo summit
2Koreans wish to work less than 40 hours per week: survey Koreans wish to work less than 40 hours per week: survey
3Apple Pay's imminent launch in Korea draws mixed responses Apple Pay's imminent launch in Korea draws mixed responses
4[ANALYSIS] Yoon-Kishida summit may 'raise ceiling' for trilateral cooperation with US: expertANALYSISYoon-Kishida summit may 'raise ceiling' for trilateral cooperation with US: expert
5New EU trade policies unnerve Korean firms New EU trade policies unnerve Korean firms
6Land minister fortifies city building cooperation with Indonesia Land minister fortifies city building cooperation with Indonesia
7North Korea fires ballistic missile as US bombers join drills North Korea fires ballistic missile as US bombers join drills
8Could Doosan Robotics be valued at 1 trillion won in IPO? Could Doosan Robotics be valued at 1 trillion won in IPO?
9Bitcoin extends super-rally amid SVB fiasco Bitcoin extends super-rally amid SVB fiasco
10Woman killed in stopped car struck by bus on highway Woman killed in stopped car struck by bus on highway
Top 5 Entertainment News
1[INTERVIEW] 'The Glory' actress Lim Ji-yeon says she wanted everyone to hate her character INTERVIEW'The Glory' actress Lim Ji-yeon says she wanted everyone to hate her character
2Competition among rookie boy groups to gain momentum Competition among rookie boy groups to gain momentum
3'Dansaekhwa' master's art museum to be prominent addition to Jeju Island's cultural fabric'Dansaekhwa' master's art museum to be prominent addition to Jeju Island's cultural fabric
4Film highlights discrimination against Chosun schools in Japan Film highlights discrimination against Chosun schools in Japan
5Kim Hee-ae, Moon So-ri team up for Netflix political drama 'Queenmaker' Kim Hee-ae, Moon So-ri team up for Netflix political drama 'Queenmaker'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group