IO – Because there is this one. That will complicate East Asia. What I also wonder: where our opportunities are.
“War exploded trade between Japan and South Korea”.
Fellow chum United States.
Samsung, LG and SK Hynix would be devastated. Also other South Korean electronics company. Devastated.
Starting last week Japan banned the export of three types of chemicals known as their “economic blood” Samsung, LG and more of it.
The dominance of Samsung in mobile phones (beating world No. 1 Huawei and Apple) will be disturbed, exhausted. Also in the television market. LG idem dito.
Japan again took a tit-for-tat.
As this reply: major Japanese companies again become playthings in South Korea.
“An eye for an eye” Japan did it this time.
Japan has never tasted this degree of angry world trade. The Japanese usually always succumb – to win.
A wave of conservatism is contagious, from Donald Trump to nowhere. Flowing too far …
Initially, because of the court ruling in South Korea.
Oops, not the beginning.
Initially, because of the Japanese occupation of Korea, throughout 1910- 1945.
Oops, not the beginning.
Initially, because of the colonial period, when many Korean women were forced to become prostitutes in the special-guest homestead Japanese army.
Oops, nor was that the beginning.
Initially the beginning was: 5,000 women are still living, of a total of about 150,000 people at the time.
They went to court, suing individually. Or in groups.
They asked for compensation.
While the court case was still in a process of appeal and cassation, Japan offered a compromise figure. That was rejected.
Last month a court in South Korea handed down a final verdict. The Supreme Court made its decision: Japanese companies have to provide compensation. Between Rp 1.0 to Rp 1.5 billion for each lawsuit.
The verdict also ordered the freezing of shares of Japanese companies in South Korea. Including joint ventures.
The women’s lawyers were smart: do not sue the Japanese government. Or the Japanese military.
Sue the Japanese companies. That is where the money lies. Which in the colonial period, during 35 years, it operated in South Korea.
Nearly 300 Japanese companies were doing business in the South at that time. More precisely: ordered to do business there. Manufacture of weapons, ammunition and military transport vehicles was carried out by these companies.
Most of them are still prosperous today – even becoming leading global companies, such as Nippon Steel, Mitsubishi Heavy Industries and Sumitomo Metal Works.
What concerns Japan is: the lawsuits will not be concluded. Women who have not sued will follow. There is already jurisprudence. Surely win.
What annoys Japan more: South Korean politicians exploiting issue for legislative advantage in next year’s elections.
Then Japan this time was tumbling.
Replies lethal done.
Samsung is not Huawei.
Can not say “ora yaws en”. Betawi language similar to “emangnye I pikirin”.
Also can not reply anything.
Japan is the ruler of the world for the production of three types of chemicals now banned for export sent to South Korea:
1. fluorinated polyamide: raw material to make phone or television screens. Japan controls 90 percent of world supply.
2. Photosensitizing resist agent. One of the ingredients needed to produce chips , the brain of a cell phone (HP). Japan also controls 90 percent of world supply.
3 . Hydrogenfluoride to clean chips. Japan accounts for 70 percent of world supply.
South Korean giants hit its “Achilles heel”.
Tit-for-tat Japan did this focus, effective, and immediately turned off.
Indeed, Japanese companies themselves are also affected: the ones who produce three types of the chemicals. They will also lose market share. Directly their stock price fell 2 percent.
But Samsung and LG share price slumped worse.
Moreover, this is not a problem that can be solved in a matter of days. Or weeks. It will be a complicated matter for giants such as Samsung and LG.
The South Korean government alone cannot do much. Likewise Samsung.
This concerns a court decision. It is final anyway. That in a democratic country cannot be interfered with.
Samsung can directly export in freefall, even though drum chips (see photo below) made by Samsung hold 70 percent of the drum chip world market, reaching over 1,000 trillion rupiah.
But the public in South Korea is difficult to control. It is no longer a question of Samsung or LG. This has become an issue of national pride. From the former colonies to the occupier.
South Korean people are angry.
They also do a tit-for-tat. In their own way. Launched a boycott of Japanese goods movement.
No Emangnya Japanese goods in Korea?
So often I was in the South. It was hard to spot Japanese cars in the street there.
I was less keen.
I just realized today: this is what they will boycott: Asahi and Kirin beer!
Also non 7Mild.
Alright. I did not know there were three items.