MEM Opportunities in Korea - Focus Report - Switzerland Global Enterprise
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Focus Report MEM Opportunities in Korea OFFICIAL PROGRAM IN COLLABORATION WITH
MEM Opportunities in Korea
Date: May 14, 2020
Language: English
Number of pages: 71
Author: Global Business Consultant Coop (Korea)
Other sectoral reports: Are you interested in reports for other
sectors and countries? More reports can be found here:
s-ge.com/reports
OFFICIAL PROGRAM IN COLLABORATION WITH
DISCLAIMER
The information in this report was gathered and researched from sources
believed to be reliable and are written in good faith. Switzerland Global
Enterprise and its network partners cannot be held liable for data which might
not be complete, accurate or up-to-date; nor for data from internet
pages/sources over which Switzerland Global Enterprise and its network
partners have no influence. The information in this report has no legal or
juridical character unless specifically noted.Contents
vacuum pumps, hand- or foot-operated
air pumps, compressors for refrigerating
equipment and air compressors mounted
1. EXECUTIVE SUMMARY _________ 5 on a wheeled chassis for towing)) ___ 56
4.6 841490 (Parts of : air or vacuum pumps,
2. INDUSTRY OVERVIEW __________ 7
air or other gas compressors, fans and
2.1 MPE Industry in Korea ____________7
ventilating or recycling hoods
2.2 Korea-Japan Trade conflict and korea’s
incorporating a fan, n.e.s ) ________ 57
actions ______________________ 8
4.7 841981 (Machinery, plant and equipment
2.3 Korea’s Export/Import Trends of MPE
for making hot drinks or for cooking or
Items _______________________ 9
heating food (excluding domestic
3. KEY ITEMS __________________ 14 appliances) __________________ 57
3.1. Group I _____________________ 14 4.8 841989 (Machinery, plant or laboratory
3.2. Group II _____________________ 25 equipment, whether or not electrically
3.3. Group III ____________________ 34 heated, for the treatment of materials by
3.4. Group IV ____________________40 a process involving a change of
temperature such as heating, cooking,
4. NON-KEY ITEMS ______________ 51
roasting, sterilising, pasteurising,
4.1 8409 (Parts suitable for use solely or
steaming, evaporating, vaporising,
principally with the engines of heading
condensing or cooling, n.e.s. (excluding
84.07 or 84.08) ________________ 52
machinery used for domestic purposes
4.2 8411 (Turbo-jets, turbo-propellers and
and furnaces, ovens and other equipment
other gas turbines ) _____________ 53
of heading 8514) ______________ 58
4.3 841370 (Centrifugal pumps, power-
4.9 8456 (Machine-tools for working any
driven (excluding those of subheading
material by removal of material, by laser
8413.11 and 8413.19, fuel, lubricating or
or other light or photon beam, ultrasonic,
cooling medium pumps for internal
electro-discharge, electro-chemical,
combustion piston engine and concrete
electron beam, ionic-beam or plasma arc
pumps) ) ____________________ 54
processes; water-jet cutting machines) 59
4.4 841410 (Vacuum pumps) _________ 55
4.10 8457 (Machining centres, unit
4.5 841480 (Air pumps, air or other gas
construction machines (single station)
compressors and ventilating or recycling
and multi station transfer machines, for
hoods incorporating a fan, whether or not
working metal ) _______________ 60
fitted with filters, having a maximum
4.11 8460 (Machine-tools for deburring,
horizontal side > 120 cm (excluding
sharpening, grinding, honing, lapping,polishing or otherwise finishing metal or 4.16 848340 (Gears and gearing, other than
cermets by means of grinding stones, toothed wheels, chain sprockets and
abrasives or polishing products, other other transmission elements presented
than gear cutting, gear or gear finishing separately; ball or roller screws; gear
machines of heading 84.61 ) _______ 61 boxes and other speed changers,
4.12 8461(Machine-tools for planing, shaping, including torque converters) ______ 66
slotting, broaching, gear cutting, gear 4.17 848610(Machines and apparatus for the
grinding or gear finishing, sawing, manufacture of boules or wafers) ___ 66
cutting-off and other machine-tools 4.18 850110 (Motors of an output not
working by removing metal or cermets, exceeding 37.5 W) _____________ 67
not elsewhere specified or included ) _ 62 4.19 850131 (DC motors of an output > 37,5 W
4.13 8462 (Machine-tools (including presses) but1. Executive Summary
The MEM industry in Korea is going through a period of great changes. Those are triggered by mainly three factors:
a) The ongoing and deepening trade conflict between Korea and Japan, resulting in strict policy measures by the Korean
government.
b) A strong drive of the Korean industry to diversify their supply chains and to reduce the dependence from Japanese
MEM products
c) The impact of the current Covid-19 crisis
All three factors generate important new market opportunities for Swiss MEM manufacturers. Factors a) and b) will lead to a
loss of market share by Japanese manufacturers. This report indicates where Swiss producers can gain from the demise of their
Japanese competitors.
The effects of factor c) are less predictable. Korea weathered the Covid-19 storm quite well and is around 6-8 weeks ahead of
Switzerland. The country did not go into a lockdown and most industrial firms were functioning. However, interrupted supply
chains let to a shortage of parts. MEM market contacts tell us that they are perceiving a clear pattern of reshoring by their
Korean customers. This will lead to an increased demand for machine tools. Obviously, the economic fallout is slowing
consumption and investment and this will likely have an adverse effect on new orders. It is still premature to tell which effect
will be greater.
The trade conflict between Korea and Japan opens a strategic window for Swiss (and other non-Japanese foreign) MEM
producers. Due to Japan’s export controls in August 2019, Korea designated ‘100 strategic items’ that need to be procured from
sources other than Japan and that need to be localized. Among the 100 items, according to priority, 20 have been assigned
target periods of ‘less than 1 year’ and 80 items as ‘less than 5 years.’
This report analyizes trends a) and b) based on hard data (customs statistics) as well as qualitative information received by
market players in Korea.
Chapter 2 (p. 7-13) gives a brief quantitative overview on the industry in Korea.
In chapter 3 and 4 we identified a total of 66 MEM items where Swiss producers stand a fair chance to increase their market
share in Korea. Chapter 3 (p. 14-49) analyses 46 items out of the 100 designated as “strategic” by the Korean government. The
data model applied uses following filters:
① Group I: Restricted Items by Japan with an import ratio greater than 50%, of which more than 50% are imported
from Japan, and of which imports from Japan total more than $10M (13 items)
② Group II: Restricted items with an import ratio greater than 50%, of which less than 50% are imported from Japan,
and of which imports from Japan total more than $30M (12 Items)
③ Group III: Restricted items with an import ratio of less than 50% and of which imports from Japan total more than
$50M
(7 Items)
④ Group IV: Non-restricted items with an import ratio greater than 50%, of which imports from Japan total more than
$40M, and of which imports are increasing (14 Items)
Chapter 4 of the report (p. 50-68) analyzes 20 additional items not qualified as “strategic” but with a high import rate from
Japan. The model applied here identifies items where Japanese manufacturers are ranked in the top 3 and Swiss imports are
higher that US$ 5 million per year in the last three years.
Chapter 5 provides a short synopsis on the market opportunities by industry breakdown.
MEM OPPORTUNITIES IN KOREA
5Chapter 6 briefly discusses some market entry and expansion strategies. As those highly depend on the actual market position and ability of every individual company, they are generic and merely serve as a rough indication as to how the strategic window could be used to gain market share. This report serves as an indicator where individual Swiss MEM companies should look for market chances and dig deeper to identify the opportunities presently occurring in Korea. Swiss Business Hub Korea and S-GE, together with its industry intelligence partners are happy to do that digging for you. We are convinced that there are hidden gems to be found. But we have to act rather quickly as we believe that the aforementioned strategic window will stay open just for the next 2 to 5 years. Seoul, April 2020 Dr. Roger Zbinden MEM OPPORTUNITIES IN KOREA 6
2. Industry Overview
2.1 MPE INDUSTRY IN KOREA
MEM refers to the metal, electrical and mechanical industries. In Korea, the relevant industry abbreviation is MPE (materials,
parts, equipment industry). MPE is wider in scope as it also includes the chemicals and textiles industries. However, in this
report we excluded those two industries. For convenience, this report will use ‘MPE’ for the Korean industry and ‘MEM’ for the
Swiss industry.
Korea has been known for its strong economic fundamentals in the manufacturing industry since the 1970s. In the beginning,
Korea started with ‘light manufacturing’ in areas such as textiles, shoes and clothes. Nowadays, its major industries and export
items are semiconductors, automobiles, shipbuilding and displays. As shown below, excluding raw materials (oil and gas), the
MPE industries are major export and import items.
Table 1 Overview on major export & import items in 2018-2019
(Unit: million USD)
EXPORT (% CAGR) IMPORT (% CAGR)
Rank
ITEM 2018 2019 ITEM 2018 2019
Electrical appliances and
1 184,588 153,629 Crude oil and Fuel 146,954 127,341
parts
Reactor, Boiler and
2 77,651 70,904 Electrical appliances and parts 84,776 89,700
Machinery
3 Vehicles 61,171 62,863 Reactor, Boiler and Machinery 60,192 51,630
Optical and Inspection
4 Mineral fuel and oil 47,989 42,179 22,422 18,478
equipment
5 Plastic products 34,915 32,594 Vehicles 16,830 16,693
6 Iron and Steel 24,746 23,098 Iron and Steel 16,455 15,678
Optical and Inspection
7 27,846 20,997 Furnace light,Slag and Ash 14,955 15,094
equipment
8 Organic chemicals 25,339 20,986 Organic chemicals 14,214 12,694
9 Ship and Water structures 20,334 18,888 Plastic products 11,813 11,517
10 Steel products 10,488 9,179 Chemical industrial products 8,611 8,164
Note: Semiconductors are included in electrical appliances and parts
Source: Korea Customs Service (2020)
In 2018, Korea’s MPE production volume was US$ 786 billion, which accounted for 52% of the entire manufacturing industry.
Since the special law on ‘Material & Parts Industry Promotion’ was passed in 2001, MPE industries have been provided with
collateral support from the government and private sector entities such as banks. As a result, production volume has increased
year by year.
MEM OPPORTUNITIES IN KOREA
7The trade volume of MPE has increased by 32.4% CAGR. In 2010, the trade volume was US$ 411 billion and increased to
US$ 544 billion in 2018.
MPE industries are generally related to other industries in that they provide opportunities for more added value and
continuous improvement. In particular, the Industry 4.0 initiative which embraces areas such as renewable energy, smart
factories, AI, and technology conversion, needs to adopt small, lightweight, and digital convergence technologies. Thereby,
Korea has focused resources and support into MPE industries to secure core technologies as well as stable sourcing.
Since 2001, Korea MPE industries have grown not qualitatively but quantitatively. This has led to rather giving weight on mass
production of general items and continued trade deficit with Japan. In 2018, MPE items accounted for 68% of total imports
(US$ 54.6 billion) from Japan. The following table presents the top four MPE import countries.
Table 2 Korea's top 4 MPE importing countries by proportion, 2018
Country Japan China EU USA
% 68.0 53.5 46.5 41.2
2.2 KOREA-JAPAN TRADE CONFLICT AND KOREA’S ACTIONS
Japan has imposed a series of export regulations in July 2019 on materials, parts, and equipment required by key
manufacturing industries of Korea such as semiconductors and displays. In August 2019, Japan removed Korea from its white
list of trade partners who are entitled to simplified export control procedures for 1,194 items including precision machinery,
carbon fiber, functional film adhesive etc. Korea thereupon removed Japan from its white list in September 2019.
In order to minimize sourcing risks due to the export curbs as well as the persisting trade deficit with Japan, the government
set the Measures on Strengthening Competitiveness of the Korean MPE industry. With this plan, it designated 100 key items
especially out of Japan’s strategic export items (1,194) and total MPE items (4,708) to raise self-sufficiency and a
diversification of trading partners. These 100 items are categorized in 6 industry fields such as semiconductors, displays,
automobiles, electro/electric, machinery/metal and basic chemicals.
Table 3 100 Key Items - type and no. of items
No. of
Industries concerned Items
Items
Semiconductors along with other relevant key materials and equipment 13
Displays Process chemicals, precision bonded materials 11
Automobiles Sensors, automotive parts, lightweight materials (body, parts) 13
Electro/Electric Battery core materials, optical lenses, new materials and electronic parts 19
Machinery and metal Metal processing equipment, high-precision alloys such as a metal powder 39
Basic Chemicals 5 types of fluorinated chemical materials and high-precision adhesive materials 5
Two target periods for supply stabilization of the 100 items are set - 20 items shall be diversified within 1 year and 80 items
within 5 years. Imports of these items will be secured from alternative sources such as the United States, China and the
European Union, and tariffs will be lowered to as little as 0% from April 2020. This measure is valid for one year. This
MEM OPPORTUNITIES IN KOREA
8diversification drive opens the strategic window for Swiss and other foreign MEM producers. Given the current development in
the Korean MPE industry, it is assumed that this trend to higher diversification will be irreversible.
The government plans to inject U$ 6.7 billion over seven years for local substitution and an additional U$ 2.1 billion to
encourage M&As of high-tech companies. Technology transfers and direct investment from abroad will also be supported. For
R&D investment, the budget of this year allocates U$ 21.3 billion, an increase of 17.3% compared to 2019. Local supplies of key
industrial materials and parts that have usually been imported from abroad are put top priority on the R&D investment
support plan.
Another key area of R&D investment is the so-called DNA project, which stands for Data, 5G Network, and Artificial
Intelligence. The budget also targets innovation in the Big-3 industries: biohealth, future smart cars and system
semiconductors.
2.3 KOREA’S EXPORT/IMPORT TRENDS OF MPE ITEMS
The following export and import trend data of the top 30 items within the last three years are crucial to examine for better
understanding the MPE industry. Description on each HS code are detailed in Table 4.
Table 4 Korea's export and import trends of MPE items
(Unit: US$ thousand, %)
2018 2019 (1~11)
HS Code
Export YoY(%) Import YoY(%) Export YoY(%) Import YoY(%)
7219 2,453,618 14.2 1,819,539 7.3 2,079,632 -9.4 1,573,854 -7.1
7326 1,819,553 11.5 1,929,622 6.2 1,681,075 0.2 1,749,584 -1.5
8409 2,800,589 7.2 1,132,947 0.5 2,929,114 13.4 1,014,358 -2.5
8414 2,962,407 8.8 2,645,610 0.7 2,742,176 1.4 2,346,770 -5.6
8419 1,862,185 10.0 1,049,958 -0.5 3,458,708 105.1 978,231 1.7
8421 1,840,018 23.8 1,540,659 13.7 1,944,398 17.3 1,592,446 13.2
8471 6,012,483 -4.5 8,267,646 9.8 954,902 -83.5 6,066,660 -20.3
8473 12,127,696 60.3 4,761,726 55.4 10,478,238 -0.4 5,762,374 41.1
8479 6,625,908 9.5 2,215,156 -8.7 5,651,742 -6.1 2,113,953 4.1
8481 2,133,571 9.3 2,431,883 -2.2 1,898,774 -3.0 2,169,422 -2.8
8486 8,663,315 26.1 16,899,429 -16.9 6,884,095 -14.4 8,206,058 -48.0
8504 2,124,128 -7.0 2,397,367 -1.0 1,865,198 -4.3 2,280,153 3.3
8507 7,225,358 21.4 1,552,048 73.8 6,754,224 2.2 1,456,596 4.3
8517 14,260,947 -8.9 11,896,365 -10.6 16,317,348 28.3 11,925,612 9.6
8523 2,597,498 214.6 1,413,107 28.7 4,522,463 93.5 1,413,155 10.2
8529 7,414,565 -9.4 2,244,550 44.7 9,475,732 41.4 4,672,993 141.3
8534 4,995,647 -9.6 2,228,113 -7.1 4,402,629 -4.7 2,050,680 1.6
8536 2,893,231 4.1 2,310,210 0.7 2,667,699 -0.1 2,059,321 -3.3
8541 6,014,560 -2.8 4,657,307 -1.2 4,803,521 -14.3 4,525,865 5.2
8542 109,776,376 27.5 34,522,862 3.4 73,002,818 -29.0 32,666,721 3.5
8544 3,262,052 12.3 3,022,652 2.8 2,642,402 -12.0 2,747,036 0.0
8703 38,248,046 -1.5 11,201,181 15.8 36,899,839 6.3 9,781,199 -4.4
MEM OPPORTUNITIES IN KOREA
98708 19,487,805 -0.2 3,877,938 -3.5 17,386,552 -3.3 3,516,452 -1.2
8901 15,792,882 -34.3 1,474,944 12.2 15,933,545 11.7 978,571 -27.5
9001 3,844,438 5.4 1,748,112 -4.4 3,570,964 1.2 1,378,642 -13.7
9013 13,452,494 -13.0 4,103,684 2.3 6,419,785 -49.1 1,188,431 -70.0
9018 1,794,862 7.2 2,001,331 10.3 1,669,252 2.9 2,006,002 10.7
9031 3,049,049 0.2 3,304,448 13.2 2,551,995 -8.9 2,245,036 -27.4
Table 5 Description of Items by HS Code
HS Code Item Description
7219 Flat-rolled products of stainless steel, of a width of 600 ㎜ or more.
7326 Other articles of iron or steel.
8409 Parts suitable for use solely or principally with the engines of heading 84.07 or 84.08.
Air or vacuum pumps, air or other gas compressors and fans ventilating or recycling hoods incorporating a fan, whether or
8414
not fitted with filters.
Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment
of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking,
8419
roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling,
other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-electric.
8421 Centrifuges, including centrifugal dryers filtering or purifying machinery and apparatus, for liquids or gases.
Automatic data processing machines and units thereof magnetic or optical readers, machines for transcribing data onto data
8471
media in coded form and machines for processing such data, not elsewhere specified or included.
Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of
8473
headings 84.69 to 84.72.
8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter.
Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure- reducing valves
8481
and thermostatically controlled valves.
Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers,
8486 semiconductor devices, electronic integrated circuits or flat panel displays machines and apparatus specified in Note 9 (C) to
this Chapter; parts and accessories.
8504 Electrical transformers, static convertors (for example, rectifiers) and inductors.
8507 Electric accumulators, including separators therefore, whether or not rectangular (including square).
Telephone sets, including telephones for cellular networks or for other wireless networks other apparatus for
the transmission or reception of voice, images or other data, including apparatus for communication in a wired
8517
or wireless network (such as a local or wide area network), other than transmission or reception apparatus of
heading 8443, 8525, 8527 or 8528; parts thereof.
Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound
8523 or of other phenomena, whether or not recorded, including matrices and masters for the production of discs,
but excluding products of Chapter 37.
8529 Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28.
8534 Printed circuits.
Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical
8536 circuits (for example, switches relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other
connectors, junction boxes), for a voltage not exceeding 1,000volts; connectors
MEM OPPORTUNITIES IN KOREA
10Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including
8541 photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes; mounted
piezo-electric crystals.
8542 Electronic integrated circuits.
Insulated (including enamelled or anodised) wire, cable (including co-axial cable) and other insulated electric
8544 conductors whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres,
whether or not assembled with electric conductors or fitted with connector.
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02),
8703
including station wagons and racing cars.
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
8901 Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods.
Optical fibres and optical fibre bundles; optical fibre cables other than those of heading 85.44; sheets and plates of polarising
9001 material lenses (including contact lenses), prisms, mirrors and other optical elements, of any material, unmounted, other
than such elements of glass not optically worked.
Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser
9013
diodes; other optical appliances and instruments, not specified or included elsewhere in this Chapter.
Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other
9018
electro-medical apparatus and sight-testing instruments.
Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this Chapter; profile
9031
projectors.
Table 6 Export and Import trend of MPE & MEM items between Korea and Switzerland
(Unit: HS 4-digit, US$ thousand, %)
HS 2017 2018 2019(3Q)
code Export YoY(%) Import YoY(%) Export YoY(%) Import YoY(%) Export YoY(%) Import YoY(%)
7106 2,132 -78.9 49 199.6 1,026 -51.9 12 -75.3 10,072 881.3 66 486.3
7108 20,426 87.4 265,772 136.3 27,435 34.3 249,085 -6.3 30,800 22.5 180,586 -23.6
7110 0 -100.0 2,208 -13.6 4,526 0.0 2,820 27.7 17,120 316.2 2,280 -12.1
7113 14,197 -11.8 79,875 30.1 19,726 38.9 78,122 -2.2 13,326 -27.7 94,771 27.9
8409 698 -4.0 19,453 8.2 592 -15.2 18,527 -4.8 434 -19.4 10,631 -38.8
8411 121 266.7 5,279 -39.6 6 -95.1 13,211 150.2 1,579 26,357.9 19,866 104.4
8413 4,065 29.3 13,477 8.4 2,912 -28.4 22,909 70.0 2,882 12.3 14,104 -25.5
8414 3,476 84.9 96,096 12.2 6,369 83.2 73,622 -23.4 4,518 -25.1 80,618 16.5
8419 87 -47.1 31,929 20.2 610 604.1 50,742 58.9 94 -84.5 26,343 -46.8
8456 47 8.1 74,334 61.5 - -100.0 60,193 -19.0 587 0.0 31,848 -46.4
8466 3,778 84.6 15,324 25.8 4,150 9.8 12,476 -18.6 4,493 17.1 12,125 7.7
8477 610 746.3 9,347 57.5 498 -18.4 6,075 -35.0 515 6.8 23,141 297.5
8479 1,757 20.4 34,080 -25.7 822 -53.2 39,134 14.8 1,791 120.5 36,947 0.9
8481 3,152 79.6 109,605 18.7 3,638 15.4 92,067 -16.0 2,625 -21.9 61,748 -28.6
8486 1,584 260.4 38,584 7.9 1,575 -0.5 31,496 -18.4 4,294 204.5 28,293 20.1
8501 4,067 50.9 18,123 43.1 4,207 3.4 23,668 30.6 3,785 -5.2 28,180 28.1
MEM OPPORTUNITIES IN KOREA
118532 956 53.8 15,688 18.0 914 -4.5 11,449 -27.0 1,044 15.6 9,107 -15.7
8536 589 8.0 18,674 43.1 528 -10.3 22,334 19.6 462 -4.3 16,476 -20.5
8538 159 49.3 13,053 23.6 74 -53.2 13,845 6.1 60 -19.7 10,304 -20.1
8542 4,721 -32.7 14,951 1.7 12,774 170.6 11,277 -24.6 10,053 -12.5 10,769 2.6
8604 - - - - - - - - - - 11,029 -
8703 166,375 37.9 88 87.7 138,928 -16.5 71 -19.7 119,033 -5.6 56 -20.4
9018 7,862 15.7 40,270 8.3 7,096 -9.7 45,364 12.6 7,731 16.4 49,128 20.0
9021 2,240 60.8 71,344 6.5 2,324 3.7 71,432 0.1 2,739 21.0 72,780 14.4
9026 170 -10.5 21,226 7.3 136 -20.2 20,526 -3.3 134 18.9 19,675 7.1
9027 1,360 -2.2 45,783 27.5 1,529 12.4 42,088 -8.1 1,616 10.5 35,956 -0.4
9030 134 0.3 11,479 -11.5 195 45.8 10,406 -9.3 460 206.8 11,779 53.4
9031 605 -18.2 27,748 13.0 959 58.6 28,799 3.8 1,043 27.3 26,266 -1.2
9101 11,120 -22.3 126,394 -1.6 26,893 141.9 165,670 31.1 16,062 -36.5 175,239 14.7
9102 6,042 28.8 382,551 18.3 7,994 32.3 572,948 49.8 3,159 -58.3 558,150 4.5
Table 7 Descriptions on items by HS Code
HS code Item Description
7106 Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form.
7108 Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form.
7110 Platinum, unwrought or in semi-manufactured forms, or in powder form.
7113 Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.
8409 Parts suitable for use solely or principally with the engines of heading 84.07 or 84.08.
8411 Turbo-jets, turbo-propellers and other gas turbines.
8413 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators.
Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or
8414
not fitted with filters.
Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other
equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating,
8419 cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or
cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-
electric.
Machine-tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic, electro-
8456
discharge, electro-chemical, electron beam, ionic-beam or plasma arc processes.
Parts and accessories suitable for use solely or principally with the machines of headings 84.56 to 84.65, including work or
8466 tool holders, self-opening dieheads, dividing heads and other special attachments for machine-tools; tool holders for any type
of tool for working in the hand.
Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included
8477
elsewhere in this Chapter.
MEM OPPORTUNITIES IN KOREA
128479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter.
Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure- reducing valves
8481
and thermostatically controlled valves.
Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers,
8486 semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9 (C)
to this Chapter; parts and accessories.
8501 Electric motors and generators (excluding generating sets).
8532 Electrical capacitors, fixed, variable or adjustable (pre-set).
Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for
8536 example, switches relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a
voltage not exceeding 1,000volts; connectors.
8538 Parts suitable for use solely or principally with the apparatus of heading 85.35, 85.36 or 85.37.
8542 Electronic integrated circuits.
8604 Railway or tramway maintenance or service vehicles.
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02),
8703
including station wagons and racing cars.
Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other
9018
electro-medical apparatus and sight-testing instruments.
Orthopaedic appliances, including crutches, surgical belts and trusses; splints and other fracture appliances; artificial parts
9021 of the body; hearing aids and other appliances which are worn or carried, or implanted in the body, to compensate for a
defect or disability.
Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for
9026 example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 90.14, 90.15,
90.28 or 90.32.
Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas
or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface
9027
tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including
exposure meters); microtomes; parts and accessories thereof.
Oscilloscopes, spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities,
9030 excluding meters of heading 90.28; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray,
cosmic or other ionising radiations.
Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this Chapter; profile
9031
projectors.
Wrist-watches, pocket-watches and other watches, including stop-watches, with case of precious metal or of metal clad with
9101
precious metal.
9102 Wrist-watches, pocket-watches and other watches, including stop-watches, other than those of heading 91.01.
MEM OPPORTUNITIES IN KOREA
133. Key Items
In this report, 46 MPE items were selected out of the designated 100 key items according to the Guidelines on Strengthening
the Competitiveness of the Korean MPE industry. 32 items throughout Group I-III as below fall under the export restricted
items by Japan which are arranged in 10-digit HS code. Additional standards such as total ratio, amount, and value of import
were applied to filter the most relevant items to MPE.
14 items in the Group IV in this chapter are not included in the export control list by Japan. However, these fall under the 100
items the Korean government wants to diversify to achieve more balanced industry development and stable supply.
The items listed in this chapter portray potential business opportunities for Swiss MEM exporters.
Table 8 Four Key Item Groups
Group I: 13 Items Group II: 12 Items
✓ Subject to Japan’s export controls on Korea ✓ Subject to Japan's export controls on Korea
✓ Total import share: more than 50% ✓ Total import share: less than 50%
✓ Share of imports from Japan: more than 50% ✓ Share of imports from Japan: less than 50%
✓ Import amount from Japan: more than $10M ✓ Import amount from Japan: more than $30M
Group III: 7 Items Group IV: 14 Items
✓ Subject to Japan’s export controls on Korea ✓ Not subject to Japan’s export controls on Korea
✓ Total import share: more than 50% ✓ Total import share: more than 50%
✓ Import amount from Japan: more than $50M ✓ Import amount from Japan: more than $40M
✓ Increasing imports ✓ Increasing imports
Details on each item with the respective HS Code throughout Group I-IV will be presented with import & export trends in
value, market flash and major local/foreign suppliers in the market. As the filter is applied on Korean customs import data,
there is no differentiation possible for items produced by a Swiss manufacturer in Switzerland or abroad.
3.1. GROUP I
In this part, following items are identified which are subject to Japan’s export curbs with an import ratio of more than 50%, of
which more than 50% are imported from Japan, and of which import values from Japan total more than $10M.
Table 9 Selected Key Items in 10-digit HS Code
N0. 10-Digit HS Code Description
1 9027801000 Instruments and apparatus for physical or chemical analysis
2 8537102010 Numerical control panels
Grinding or polishing machines for processing of semiconductor wafer, including lapping
3 8486209310
machines
MEM OPPORTUNITIES IN KOREA
144 8486103020 Grinding or polishing machines for processing of wafer, including lapping machines
Pattern generating apparatus of a kind used for producing masks or reticles from photoresist
5 8486401010
coated substrates
6 8532210000 Tantalum
7 8479909060 Presses or extruding machines
8 8407210000 Outboard motors
9 8421219020 Filtering or purifying machinery and apparatus for making semiconductor devices
10 8486401040 Machines and apparatus for etching, cleaning or stripping mask and reticle
11 8460230000 Other cylindrical grinding machines, numerically controlled
12 8543709020 Detectors, including optical sensor
13 8486209321 Laser operated apparatus
3.1.1 9027801000 (Device for physical or chemical analysis)
Description: Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers,
spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity,
expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light
(including exposure meters); microtomes.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 433.6 471.5 321.4
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (254.7) 32.6 287.2
USA (54.0) 6.5 60.4
Germany (31.9) 3.7 35.6
UK (28.3) 2.0 30.3
China 152.2 168.9 16.7
Market Flash: From 2013 to 2017, the global market for auto bio-chemical analysis devices grew by an average of 5.18%. In
2017, the size of the global market for auto bio-chemical devices was $3,131M and 111,428 units.
MEM OPPORTUNITIES IN KOREA
15Major Suppliers:
• Japan: Hitachi
• Global: Roche (Switzerland), Danaher (US), Siemens Healthcare (Germany), Thermo Scientific (US), Sunostik (China)
3.1.2 8537102010 (Numerical control panels)
Description: Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35
or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of
Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 224.8 230.0 115.1
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (209.6) 0.3 209.9
Germany (11.4) 0.1 11.5
China 6.9 10.1 3.3
Israel (2.9) 0.0 2.9
USA 5.5 6.3 0.8
Market Flash: The annual growth rate of the global market for Industrial Control and Factory Automation is 8.8%. Through
2025, the industrial robot market, which is the essential part of this category, is expected to grow to US$ 91,000M.
Major Suppliers:
• Japan: Hitachi Ltd, Fanuc Corp, Fuji Electric, MRON Corp, Mitsubishi Electric Corp, Yokogawa Electric Corp
• Global: Dwyer Instruments, Emerson Electric, General Electric, Hewlett-Packard, Honeywell International (US),
Danfoss A/S (Denmark), Progea Srl (Italy), Schneider Electric SA, Siemens AG, Krohne Messtechnik GmbH, Vega
Grieshaber KG, WIKA Alexander Wiegand SE & Co. KG (Germany)
3.1.3 8486209310 (Grinding or polishing machines for processing of semiconductor wafer, including
lapping machines)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
MEM OPPORTUNITIES IN KOREA
16Imports 2017 2018 2019_3Q
(Mil.$) 677.6 428.7 73.1
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Singapore (266.7) 0.0 266.7
Japan (160.2) 1.6 161.8
Vietnam 2.9 3.0 0.1
China 23.4 23.4 0.0
USA 16.3 16.3 0.0
Market Flash: The size of the market for Wafer Polising and Grinding in 2018 was about $345M. By 2024, the market is
expected to grow to $464M with a growth rate of 4.1%
Major Suppliers:
• Japan: Tokyo Seimitsu Co. Ltd. (Accretech Create Corp.), Ebara Corporation, Komatsu NTC Ltd., Okamoto
Corporation, Logitech Ltd., Disco Corporation
• Global: Applied Materials Inc. (US), Lapmaster Wolters GmbH, Logomatic GmbH, Entrepix Inc. (US), Revasum Inc.
(US)
3.1.4 8486103020 (Grinding or polishing machines for processing of wafer, including lapping machines)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 31.1 110.7 58.5
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (98.3) 0.1 98.4
Germany (10.8) 0.3 11.1
MEM OPPORTUNITIES IN KOREA
17USA (0.6) 0.3 1.0
UK (0.1) 0.0 0.1
Taiwan 0.8 0.9 0.1
Market Flash: In 2018, the size of the market for Wafer Polishing and Grinding was $344M. By 2024, the market is expected to
grow to $464M with a growth rate of 4.1%.
Major Suppliers:
• Japan: Tokyo Seimitsu Co. Ltd. (Accretech Create Corp.), Ebara Corporation, Komatsu NTC Ltd., Okamoto
Corporation, Logitech Ltd., Disco Corporation
• Global: Applied Materials Inc. (US), Lapmaster Wolters GmbH, Logomatic GmbH, Entrepix Inc. (US), Revasum Inc.
(US)
3.1.5 8486401010 (Pattern generating apparatus of a kind used for producing masks or reticles from
photoresist coated substrates)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 172.2 95.2 214.5
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (60.3) 0.0 60.3
Sweden (29.0) 5.3 34.3
Germany (0.5) 0.0 0.5
USA 0.1 0.1 0.0
Hong Kong (0.0) 0.0 0.0
Market Review: not enough information
Major Suppliers:
• Japan: Toppan Printing Inc, Canon Materials Inc.
MEM OPPORTUNITIES IN KOREA
18• Global: Applied Materials, Inc. (US), KLA-Tencor Corporation (US), Mycronic (Sweden), Heidelberg Instruments
(Germany)
3.1.6 8532210000 (Tantalum)
Description: Electrical capacitors, fixed, variable or adjustable (pre-set).
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 134.3 116.8 96.5
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (48.1) 2.3 50.4
Thailand (15.5) 0.5 15.9
Philippines (13.1) 2.5 15.6
China 27.5 42.3 14.8
Czechia (7.4) 0.0 7.4
Market Flash: Through 2024, the market is expected to grow at a rate of 5.81% (CAGR). Major reasons for growth are the wide
application of Tantalum in the electronic market as well as the aerospace and gas-turbine industry. China and Korea are the
countries that consume the most.
Major Suppliers:
• Japan: Taki Chemical Co., Ltd, Rohm Semiconductors
• Global: H.C. Strack (Germany), Duoluoshan Sapphire Rare Metal Co., Fogang Jiata Metals Co., Ningxia Orient
Tantalum Industry Co., China Minmetals Corp (China), Metallurgical Products Co., Global Advanced Metals, Alkane
Resources Ltd. (US), ULBA Metallurgical Plant (Russia), Altura Mining Ltd. (Australia)
MEM OPPORTUNITIES IN KOREA
193.1.7 8479909060 (Presses or extruding machines)
Description: Machines and mechanical appliances having individual functions, not specified or included elsewhere in this
Chapter.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 51.1 54.7 36.7
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (42.3) 3.0 45.3
China (3.0) 0.6 3.6
Germany (2.6) 0.4 3.1
Taiwan (1.4) 0.0 1.4
USA (0.0) 0.6 0.6
Market Flash: Through 2024, the global market for hydraulic press machines is expected to grow at a rate of 4.53% CAGR, with
a volume of $22,249M.
Major Suppliers:
• Japan: Japan Automatic Machine Co. Ltd, Komatsu, Sanki Seiko Co., Ltd.
• Global: Actuant Corporation (US), Dorst Technologies GmbH & Co. KG (Germany), Fujian Haiyuan Automation
Equipments Co. Ltd. (China), Gasbarre Products, Inc. (US)
3.1.8 8407210000 (Outboard motors)
Description: Spark-ignition reciprocating or rotary internal combustion piston engines.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 36.9 33.1 25.5
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
MEM OPPORTUNITIES IN KOREA
20Japan (26.7) 0.0 26.7
USA (5.7) 0.0 5.7
China (0.4) 0.0 0.4
Thailand (0.2) 0.0 0.2
Norway (0.0) 0.0 0.0
Market Flash: The item’s main application is light boat engines for leisure and commercial boats. Through 2024, the market is
expected to grow at a rate of 4.54% CAGR.
Major Suppliers:
• Japan: Suzuki Motor, Yamaha Motor, Honda Motor
• Global: Mercury Marine (US), Volvo Penta (Sweden), Cummins Inc. (US)
3.1.9 8421219020 (Filtering or purifying machinery and apparatus for making semiconductor devices)
Description: Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 9.8 28.6 18.9
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (24.9) 0.0 25.0
USA (2.0) 0.1 2.1
Germany (1.3) 0.0 1.3
Netherland 0.0 0.2 0.2
China 6.2 6.2 0.0
Market Flash: The global market for industrial centrifugal separators in 2016 was $831M and is expected to grow to $1,111M by
2022 (CAGR 4.9%). The major application areas are chemistry, food & beverage, medical, water recycling and the pulp and
paper industries.
Major Suppliers:
MEM OPPORTUNITIES IN KOREA
21• Japan: Mitsubishi Kakoki Kaisha
• Global: Andritz (Austria), Alfa Laval (Sweden), GEA Group/Hiller, Heinkel (Germany), Thomas Broadbent,
Schlumberger, Ferrum, SPX Flow (US), FLSmidth (Denmark), Gruppo Pieralisi (Italy)
3.1.10 8486401040 (Machines and apparatus for etching, cleaning or stripping mask and reticle)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 15.6 32.4 3.4
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (16.1) 0.3 16.4
USA (16.0) 0.0 16.0
China 15.9 15.9 0.0
Taiwan 3.0 3.0 0.0
Vietnam 0.0 0.0 0.0
Market Flash: not enough information
Major Suppliers:
• Japan: Hitachi Metals Ltd, Asahi Diamond Industrial Co Ltd, Jetkt Corporation
• Global: AB Sandvik Coromant (Sweden), BIAX Schmid & Wezel GmbH & Co. KG, KOMET Group GmbH, Sprenger
Schleiftechnik GmbH (Germany), Forbes & Company Ltd (India), Jarvis Cutting Tools, Inc. (US), Jiangsu Funlin Super
Hard Tools Co, Shanghai Machine Tool Works Ltd. (Ecotech Machinery) (China)
Ehwa Diamond Industrial Co., Ltd (Korea), Janinher Machine Co. Ltd, Palmary Machinery Co. Ltd (Taiwan)
MEM OPPORTUNITIES IN KOREA
223.1.11 8460230000 (Other cylindrical grinding machines, numerically controlled)
Description: Machine-tools for deburring, sharpening, grinding, honing, lapping, polishing or otherwise finishing metal or
cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing
machines of heading 84.61.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 12.1 21.4 20.2
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (12.3) 1.4 13.7
Germany (2.7) 0.1 2.8
Switzerland (2.6) 0.0 2.6
Czechia (1.6) 0.0 1.6
Taiwan (0.4) 0.0 0.4
Market Flash: not enough information
Major Suppliers:
• Japan: Hitachi Metals Ltd, Asahi Diamond Industrial Co Ltd, Jetkt Corporation
• Global: AB Sandvik Coromant (Sweden), BIAX Schmid & Wezel GmbH & Co. KG, KOMET Group GmbH, Sprenger
Schleiftechnik GmbH (Germany), Forbes & Company Ltd (India), Jarvis Cutting Tools, Inc. (US), Jiangsu Funlin Super
Hard Tools Co. / Shanghai Machine Tool Works Ltd.(Ecotech Machinery) (China)
Ehwa Diamond Industrial Co., Ltd (Korea), Janinher Machine Co. Ltd. / Palmary Machinery Co. Ltd (Taiwan)
3.1.12 8543709020 (Detectors, including optical sensor)
Description: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this
Chapter.
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 65.8 49.1 29.1
MEM OPPORTUNITIES IN KOREA
23Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (19.8) 7.0 26.7
China 10.0 17.3 7.3
USA (5.1) 1.5 6.6
France (1.5) 0.0 1.6
Market (1.2) 0.2 1.4
Market Flash: Through 2025, the market is forecast to grow at 6.8% CAGR to a volume of $1,580M. There are three major
product categories: Fiber Optic Sensors, Image Sensors and Biophotomic Sensors.
Major Suppliers:
• Japan: Sony Corp, Omron Corp, Hamamatsu Photonics
• Global: NP Photonics, Inc. (US), Banpil Photonics, Inc. (US), Keyence Corporation of America (US), ON
Semiconductor Corp. (US), Prime Photonics (US), Pepperl+Fuchs GmbH (Germany), Samsung Electronics Co., Ltd.
(Korea)
3.1.13 8486209321 (Laser operated apparatus)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 18.7 14.5 23.6
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (14.5) 0.0 14.5
China 1.0 1.0 0.0
Poland 0.0 0.0 0.0
Market Flash: The global semiconductor laser market in 2017 was estimated to be about $190M. The market is expected to
grow to $383M by 2025 with a growth rate of 9.47% CAGR.
MEM OPPORTUNITIES IN KOREA
24Major Suppliers:
• Japan: Sony, Nichia, Sharp, Ushio, ROHM
• Global: Topica Photonics AG (Germany), Arima Lasers (Taiwan), Newport Corp (US), Finisar (US)
3.2. GROUP II
In this part, following items are identified which are subject to Japan’s export curbs with an import ratio of more than 50%, of
which less than 50% are imported from Japan, and of which import values from Japan total more than $30M.
Table 10 Selected Key Items in 10-digit HS Code
No. 10-Digit HS Code Description
1 8486206020 Step and repeat aligners (semiconductor)
2 9027100000 Gas or smoke analysis apparatus
3 8482500000 Other cylindrical roller bearings
4 8482300000 Spherical roller bearings
5 8408909030 Internal combustion engines for heading 84.29
6 9022192000 X-rays apparatus for industrial use
7 8408102000 Diesel engine with a rating more than 300 kW, not exceeding 2,000 kW
8 8412310000 Linear acting (cylinders)
9 8501101000 DC motors
Automated machines and apparatus for transport, handling and storage of
10 8486403010 semiconductor wafers, wafer cassettes, boxes and other material for semiconductor
devices
11 8486208410 For dry-etching patterns on semiconductor materials
12 8486204000 Machines for depositing membrance or sputtering metal on semiconductor wafers
MEM OPPORTUNITIES IN KOREA
253.2.1 8486206020 (Step and repeat aligners)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 101.4 658.1 48.1
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Netherlands (501.6) 1.6 503.2
Japan (112.2) 19.9 132.1
Singapore (7.5) 3.2 10.7
USA 0.6 6.0 5.3
Italy (4.1) 0.0 4.1
Market Flash: Apparatus used for photomasking process to align light exposure. The global market is forecast to grow at a rate
of 4.5% and reach $2,300M by 2025.
Major Suppliers:
• Japan: Canon, Nikon, Nuflare Technology, JEOL
• Global: ASML Holding (Netherlands), Veeco Instruments (US), Rudolph Technologies, Inc. (US), Ultratech, Inc.
(US), SUSS MicroTec (Germany), EV GROUP (Austria)
3.2.2 9027100000 (Gas or smoke analysis apparatus)
Description: Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers,
spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity,
expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light
(including exposure meters); microtomes.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 350.9 401.7 307.1
MEM OPPORTUNITIES IN KOREA
26Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Germany (83.3) 0.4 83.7
USA (46.8) 33.3 80.0
Vietnam (70.9) 4.8 75.7
Japan (60.8) 2.4 63.1
Czechia (42.2) 0.4 42.7
Market Flash: The global market for Residual Gas Analyser is estimated at $263M and is expected to grow to $310M by 2026.
Major Suppliers:
• Japan: ULVAC, Horiba
• Global: Inficon (Switzerland), MKS Instruments (US), Standar Research Systems (US), Pfeiffer Vacuum (Germany)
3.2.3 8482500000 (Other cylindrical roller bearings)
Description: Ball or roller bearings.
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 116.9 122.0 90.3
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (49.5) 0.4 49.9
Germany (26.3) 0.6 27.0
China (10.6) 7.3 18.0
USA (5.2) 2.3 7.5
Romania (7.0) 0.0 7.0
Market Flash: The size of the global bearing market is about $7,700M and is growing at a rate of 8.7%. The ball bearing market
in particular is expected to reach $6,200M by 2025 (CAGR 8.4%).
Major Suppliers:
MEM OPPORTUNITIES IN KOREA
27• Japan: NTN Corp., Minebea, Mitsumi, THK
• Global: Schaeffler (Germany), SKF (Sweden), Timken (US), GGB Bearing (US)
3.2.4 8482300000 (Spherical roller bearings)
Description: Ball or roller bearings.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 69.2 75.0 55.3
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (33.7) 0.1 33.9
Germany (17.9) 0.4 18.3
China (7.8) 0.7 8.5
Sweden (5.3) 0.0 5.3
USA (3.7) 1.0 4.7
Market Flash: The size of the global bearing market is about $7,700M, and it is growing at a rate of 8.7%. The ball bearing
market in particular is expected to reach $6,200M by 2025 (CAGR 8.4%).
Major Suppliers:
• Japan: NTN Corp, Minebea Mitsumi, THK
• Global: Schaeffler (Germany), SKF (Sweden), Timken (US), GGB Bearing (US)
3.2.5 8408909030 (Internal combustion engines for heading 84.29)
Description: Compression-ignition internal combustion piston engines (diesel or semi-diesel engines).
Imports & Exports:
Import 2017 2018 2019_3Q
(Mil.$) 262.8 353.7 217.8
MEM OPPORTUNITIES IN KOREA
28Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Sweden (107.0) 0.0 107.0
UK (93.4) 0.0 93.5
Germany (85.0) 0.0 85.0
Japan (48.6) 0.0 48.6
USA (12.8) 0.5 13.3
Market Flash: Mainly internal combustion systems for automobiles, commercial trucks, etc. Between 2014 and 2019, the
growth rate of the piston system market was 6.9% CAGR, rising to a total of about $4,400M. However, due to the recent trend
of engine downsizing and the growth of the EV market, the market is expected to gradually shrink.
Major Suppliers:
• Japan: Hitachi Automotive Systems, Aisin Seiki, Art Metal Mfg
• Global: PT Astra (Indonesia), Shandong Binzhou Bohan Pistons (China), Rheinmetal Automotive (Germany)
3.2.6 9022192000 (X-rays apparatus for industrial use)
Description: Apparatus based on the use of X-rays or of alpha, beta or gamma radiations, whether or not for medical, surgical,
dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high
tension generators, control panels and desks, screens, examination or treatment tables, chairs and the like.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 104.5 105.1 52.7
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (52.9) 0.6 53.5
USA (19.8) 0.7 20.5
Germany (12.1) 0.4 12.5
Israel (6.7) 0.0 6.7
UK (5.4) 0.0 5.4
MEM OPPORTUNITIES IN KOREA
29Market Flash: The size of the X-ray apparatus system market in 2016 was $545M. The market is expected to grow between
2017 and 2023 at a rate of 6.51% CAGR to a value of $868M.
Major Suppliers:
• Japan: Olympus Corporation, Hamamatsu Photonics K.K
• Global: North Star Imaging, Inc. (US), Nikon Metrology NV (Belgium), Nordson DAGE (UK), YXLON International
GmbH (Germany), VJ Group, Inc. (US), 3DX-RAY Ltd. (UK), VisiConsult X-ray Systems & Solutions GmbH
(Germany), Smiths Detection, Inc. (UK), Mettler-Toledo International Inc. (Switzerland), General Electric Co. (US).
3.2.7 8408102000 (Diesel engine with a rating more than 300 kW, not exceeding 2,000 kW)
Description: Compression-ignition internal combustion piston engines (diesel or semi-diesel engines).
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 65.1 83.3 43.2
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (33.6) 0.6 34.1
Germany (22.3) 0.0 22.3
USA (11.7) 0.6 12.3
Sweden (6.9) 0.0 6.9
UK (2.0) 1.5 3.6
Market Flash: Mainly for mid-size commercial trucks and vessels. Due to the recent trend of eco-friendly, low-emmission
engines, the market is expected to stagnate.
Major Suppliers:
• Japan: Mitsubishi, Hitachi, Kawasaki, Aisin, Art Metal
• Global: PT Astra Otoparts TBK (Indonesia), Shandong Binzhou Bohai Poston (China), Rheinmetall Automotive AG
(Germany), Cummins (US)
MEM OPPORTUNITIES IN KOREA
303.2.8 8412310000 (Linear acting (cylinders))
Description: Other engines and motors.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 88.4 81.3 58.7
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (36.9) 3.5 40.4
China (19.2) 2.8 22.0
USA (5.0) 1.0 6.0
Germany (5.0) 0.6 5.6
Italy (3.7) 0.0 3.7
Market Flash: The size of the global linear motion market in 2018 was $2,800M and is forecast to grow at a rate of 5.3% CAGR
through 2024 to a value of $4,400M. These items are core parts for robotics and factory automation.
Major Suppliers:
• Japan: Yaskawa Electric, Mitsubishi Electric, THK, NSK, Nippon Thompson
• Global: HIWIN Technologies Corp. (Taiwan), Robert Bosch GmbH, Schaeffler Technologies AG & Co. KG
(Germany), Rockwell Automation Inc., Timken Company, Fortive (US), Hepco Motion (UK), SCHNEEBERGER
Group (Switzerland)
3.2.9 8501101000 (DC motors)
Description: Electric motors and generators (excluding generating sets).
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 860.6 687.1 441.4
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
MEM OPPORTUNITIES IN KOREA
31China (322.1) 67.3 389.4
Phillippines (105.1) 3.3 108.4
Vietnam (61.2) 11.6 72.8
Japan (29.4) 16.6 45.9
Germany (14.8) 1.7 16.6
Market Flash: Through 20205, the global market for brushless DC motors is expected to grow at a rate of 6.7% CAGR to a size
of $22,700M. This category is widely used to achieve high efficiency, low maintenance costs, stable peak output, etc.
Major Suppliers:
• Japan: Toshiba, Nidec
• Global: ABB Group (Baldor Electric Company), Buhler Motor GmbH (Germany), Maxon Motors AG (Switzerland),
Ametek, Inc. (US), Allied Motion Technologies, Inc. (US), Johnson Electric Holdings Limited (Hong Kong), Rockwell
Automation, Inc. (US), ARC Systems, Inc. (US)
3.2.10 8486403010 (Automated machines and apparatus for transport, handling and storage of
semiconductor wafers, wafer cassettes, boxes and other material for semiconductor devices)
Description: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or
wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9
(C) to this Chapter; parts and accessories.
Imports & Exports:
Imports 2017 2018 2019_3Q
(Mil.$) 636.1 458.0 366.1
Country Balance Export Import
(2018) (M.$) (M.$) (M.$)
Japan (171.3) 9.0 180.3
Singapore (158.6) 21.2 179.8
USA (21.3) 20.5 41.8
Germany (33.9) 1.2 35.1
Netherlands (4.5) 0.9 5.4
Market Flash: not enough information
MEM OPPORTUNITIES IN KOREA
32You can also read
