59% of Exporting SMEs Say "Improved Korea-Japan Relations Help Corporate Growth"

Korea Federation of SMEs Survey Marks 60 Years of Korea-Japan Diplomatic Ties
83% of Companies Hoping for Expanded Exchange Expect Increased Exports
"Cooperation Needed for Joint Response to Supply Chain and Trade Issues"

A significant number of exporting small and medium-sized enterprises (SMEs) view the improvement of Korea-Japan relations as positive for the Korean economy and corporate growth.

The Korea Federation of SMEs announced the results of its "Korea-Japan Economic Cooperation SME Perception Survey" on November 23. This survey was conducted last month with 400 exporting SMEs to mark the 60th anniversary of the normalization of diplomatic relations between Korea and Japan.

Survey Results on the Impact of Improved Korea-Japan Relations on the Korean Economy and Corporate Growth: Exporting Small and Medium Enterprises. Korea Federation of SMEs

Regarding the impact of improved Korea-Japan relations on the Korean economy and corporate growth, 58.8% of exporting SMEs responded that it would be "helpful" (8.8% said "very helpful," and 50.0% said "somewhat helpful").Only 5.5% responded that it would "not be helpful."

When asked about the status of Korea-Japan economic relations over the past 60 years, 65.5% of respondents perceived Korea and Japan as having an "equal relationship."

Additionally, 50.3% of companies said they plan to expand exchanges with Japan in the future, prompted by recent improvements in Korea-Japan relations such as the resumption of shuttle diplomacy. The most desired area for exchange expansion (multiple responses allowed) was export expansion (82.6%), followed by increased imports of raw and subsidiary materials (19.9%), increased investment (10.0%), and expanded human and technological exchanges (7.5%).

Survey Results on Exporting Small and Medium Enterprises' Intentions to Expand Exchanges with Japan and Desired Areas for Exchange Expansion. Korea Federation of SMEs

Among companies not intending to expand exchanges, 37.2% cited the completion of alternative sourcing for raw and subsidiary materials, 28.6% pointed to low market attractiveness, and 20.1% expressed concerns over uncertainty in bilateral relations.

As for the government’s role in expanding economic exchanges between the two countries (multiple responses allowed), support for market development through exhibitions and similar initiatives was cited most frequently (54.5%). This was followed by the expansion of technological and human exchanges by industry (38.0%) and increased financial support (31.8%). Notably, in the bio-pharmaceutical sector, support for market development was cited by 83.3% of respondents.

Priority tasks that both countries should jointly address (multiple responses allowed) included joint responses to global trade issues such as protectionism (75.5%), expansion of bilateral and multilateral trade agreements (58.5%), and joint responses to low birth rates and population aging (24.3%).

Choo Moonkab, Head of Economic Policy at the Korea Federation of SMEs, stated, "To effectively respond to changes in the economic and industrial environment that both countries face, such as global supply chain restructuring and demographic shifts, it is essential to strengthen practical cooperation between Korean and Japanese SMEs, which are in a complementary relationship in areas such as components, technology, and human resources."

Meanwhile, the Korea Federation of SMEs plans to hold the "Korea-Japan SME Economic Forum" in Tokyo, Japan, on November 25 to discuss ways to expand exchange and cooperation between SMEs of both countries in commemoration of the 60th anniversary of the normalization of diplomatic relations.

This content was produced with the assistance of AI translation services.