Moody’s: Japan’s export curbs credit negative for Korean tech firms

The US-based rating agency, Moody’s Investor Service, is out with a report on the latest Japanese exports curb on the Korean technology firms.

Key Points (Yonhap):

The decision by Japan to tighten rules on exports to South Korea of key materials used in semiconductors and displays is a credit negative for Korean technology firms such as Samsung Electronics Co. and SK hynix Inc.

“The Korean manufacturers heavily rely on Japanese producers for input materials.”  

Korea imported 92 percent of its photoresist, 44 percent of its etching gas and 94 percent of its fluorinated polyimide from Japan in the first five months of 2019.

“However, Moody’s does not expect the export controls to escalate to an extent that will cause a material impact on the operations of the Korean manufacturers”.