Supply Chain Risks in EU-South Korea Relations: Semiconductor Industries

 “Supply Chain Risks in EU-South Korea Relations: Semiconductor Industries” by Sunkung Choi focuses on the impact of supply chain disruptions on the semiconductor industries in the European Union (EU) and South Korea.

The key points:

1. Global supply chain vulnerabilities: Recent geopolitical crises and the COVID-19 pandemic have exposed significant weaknesses in global supply chains, leading to disruptions and shortages. Governments and industries are now prioritizing supply chain resilience and independence.
2. Economic cooperation between the EU and South Korea: The EU and South Korea have developed strong economic ties, especially since the EU-Korea free trade agreement in 2011. This agreement has greatly increased bilateral trade and investment, with total trade in goods reaching 107.3 billion euros in 2021.
3. Semiconductor shortage crisis: The semiconductor shortage crisis in 2020–2021 severely impacted industries reliant on chips. This crisis highlighted the importance of addressing supply chain vulnerabilities and prompted collaborative efforts between the EU and South Korea to strengthen critical industries like batteries and semiconductors.
4. Strategic collaboration: Moving forward, strategic collaboration between the EU and South Korea is crucial for effectively addressing supply chain crises. Key measures include enhancing supply chain resilience, investing in research and development, and fostering technological cooperation to ensure economic stability and navigate future challenges.
5. Impact on the EU and German economy: The supply chain crisis has significantly affected the EU, causing shortages of critical components and raw materials, production delays, and increased costs. The German economy, heavily reliant on imports for intermediate goods, has been particularly impacted. Disruptions in countries like China and India have exposed the EU’s vulnerability due to its dependency on a limited number of suppliers, leading to price volatility and inflation.
6. Future directions: The study emphasizes the need for ongoing cooperation and strategic measures to mitigate future supply chain disruptions. This includes strengthening supply chains for advanced industries such as electric vehicles, renewable energy storage, and portable electronics.

Conclusion: The study concludes that addressing supply chain vulnerabilities through enhanced cooperation and strategic investments will be crucial for the economic stability and growth of both the EU and South Korea.