Korea International Trade Association’s (KITA) Institute for International Trade and Commerce Research has published a report stating that South Korea ranks near the top globally in robot utilisation.
Titled, ‘Changes in the Global Robotics Industry Landscape and Comparison of Korean and Japanese Supply Chains: Implications’, the report also stated that 71.2% of robot shipments in South Korea are concentrated in the domestic market.
Japan, the world’s second-largest installer of industrial robots, exports more than 70% of its shipments.
Reportedly, South Korea relies on China for 88.8% of its permanent magnets and that its domestic production rate for materials and components remains around 40%.
South Korea’s low localisation rate means that as finished robot production expands, imports of materials and components are likely to rise as well.
However, the report was also keen to highlight the nation’s structural vulnerability due to its high dependence on foreign countries for key materials such as rare earth elements, permanent magnets, and special steel in the upstream.
In conclusion, the report stressed that key to South Korea’s robotics industry future-dominance is full utilisation of its downstream-centric growth structure into a balanced supply chain structure that connects upstream and midstream
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