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KEI Spotlight

Troy Stangarone Writes on Impact of Korea-Japan Conflict on Global Supply Chains

August 6, 2019

In his latest column for the Korea Times, KEI Senior Director and Fellow Troy Stangarone writes on the impact that Japan's removal of South Korea from its whitelist of trusted export destinations will have on the global supply chain. He explains that modern manufacturers have adopted a "just-in-time" approach to supplies, allowing them to decrease parts held in inventory and allowing them to adjust quickly to market shifts. This efficiency gain is now under threat from as Japan's actions will prompt countries to shorten their supply chain to better secure production. 

In addition, any delays in South Korean firms' ability to deliver intermediary goods to regional manufacturers will have a major ripple effect across the global market.

Read the full article here