S. Korea needs key component tech boost to cut trade deficit with Japan

SEOUL, Sept. 24 (Yonhap) -- South Korea needs to boost key component technology and nurture smaller companies to close the country's chronic trade deficit with Japan, a central bank report showed Wednesday.

South Korea's trade shortfall with Japan reached US$29.9 billion in 2007, sharply
up from $24.4 billion in 2005, researchers at the Bank of Korea (BOK) said in the
report. Imports of Japanese industrial parts comprised over 60 percent of the
shortfall.
"South Korea's continued trade deficit with Japan results from a lack of key
technology in the local component industry, and there has been a social and
cultural difference of public awareness about the manufacturing sector," the
report said.
To address this problem, Asia's fourth-largest economy needs to develop
technology and to seek a long-term plan to nurture human resources and beef up
global competitiveness, the BOK said.
sooyeon@yna.co.kr
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