<Anchor>

This time, I will look at the issue of Japanese retaliation from a broader perspective. If Japan, which has a strong basic science, sells materials and parts, Korea will export it as a semiconductor, and then the United States will use it to make IT finished products. The global value chain is called the 'global value chain' in English, while the international division of labor, which we have shown in simple terms,

The world economy has grown together in this structure, and the sudden Japanese tyranny is wrecking the division of labor and worrying that it will adversely affect the world economy.

Reporter Kim Do Kyoon will tell you.

<Reporter>

Japan is arguing that export controls will not have an impact on the global economy, but Mobylom has criticized Japan through an editorial in which "Abe Shinzo 's unprecedented trade war".

"As a leader who has been applauded for strengthening the global trade order so far, it is especially hypocritical."

China's Fangxi City has pointed out that economic conflicts are affecting security issues.

In particular, anxiety that the 'global value chain', which is the main driving force of world trade, is shaking is leading to a surge in semiconductor prices.

This is due to the influence of Korean products, which account for 72% and 49% of global market share in DRAM and NAND flash, which are called 'rice of IT industry' respectively.

[Lee Joo-wan / Researcher of Hana Financial Management Research Institute: (Apple, Google, etc.) There is a lot of pre-order to get a little more volume when production is still normal, I guess.]

Even Korea's rival Taiwan Semiconductor Company, TSMC, was worried that it would bring "big uncertainty" to the market rather than expecting profits from the incident.

[Kim Gyu-cheon / Chief of the Korea Development Institute: In terms of the global supply chain, firms that produce memory semiconductors and make final products, US Apple and IT companies can be hit hard.]

There is a warning that Japan's further retaliation could seriously damage the world economy if things get worse.

(Image coverage: Jung Jin-jin and Nam-sung Kim, Image editing: Seong Won Ha)