S.Korean makers look to Japan as won weakens

A trade conference in South Korea has drawn many local firms eager to supply products to Japan at affordable prices by taking advantage of favorable exchange rates.

About 120 Japanese and South Korean businesses took part in Friday's meeting in Seoul. It was organized by the 2 countries' business organizations and the South Korean government.

The event brought together South Korean makers of machine parts and metal molds, and Japanese firms that can procure these components from South Korea.

The South Korean firms brought product samples and catalogs showcasing their advanced technology. They stressed they could supply products at lower prices, thanks to the weaker won and the higher yen.

One parts supplier said many South Korean firms are hoping to take advantage of the weaker won to make inroads into Japan.

A Japanese electric appliance maker said it is eager to do business with South Korean partners, as long the products are good and the prices are low.

South Korea has a trade deficit with Japan of nearly 40 billion dollars a year, but exports to Japan are expected to grow sharply.

Exchange rates are one factor. But another reason is the March 11th disaster, which has prompted many Japanese firms to look abroad for suppliers, to avoid the risk of power shortages at home.

Friday, September 30, 2011 18:11 +0900 (JST)