According to the Korea Times, Japan's tightening of travel restrictions for people traveling from South Korea to Japan may hinder some companies' ability to maintain production lines, implement and export new technologies, and local companies will face difficulties as a result.

Japanese Prime Minister Shinzo Abe announced on the 5th that from 9th to the end of this month, tourist visas issued to Chinese and Korean citizens will be "invalid", and those who enter Japan from the two countries will be quarantined at designated places for 14 days.

As Japan is an important exporter of South Korea, entry restrictions will affect many companies, especially those in the semiconductor and panel industries. As South Korea ’s foreign ministry raises tourist warnings to Japan, it will be difficult for experts and engineers to maintain and repair equipment to enter South Korea.

"In the initial stage of equipment installation, Japanese and Korean engineers will visit the production line to test and debug the equipment. Staff exchange is imperative. Without staff exchange, business may be frustrated," said an official at a local semiconductor company. Means.

In addition, South Korea's dependence on Japanese equipment remains high. According to data from the Export-Import Bank of Korea, 44.6% of semiconductor manufacturing equipment comes from the United States and 28.2% comes from Japan. Most Japanese equipment is complex, and local companies use it for next-generation semiconductor production lines, such as EUV process manufacturing.

The official said that South Korea currently does not restrict exports, so the changes are not obvious and the company is closely monitoring the situation. In addition, Japan-South Korea trade relations have been entangled and the business atmosphere has been affected. Japan is the second largest market in South Korea. How to take a cautious approach in the future.

Due to the outbreak of the new crown virus, most companies have restricted overseas business travel and initiated remote office models. However, if travel restrictions are extended, it may have a significant impact on the supply and operation of the company, forcing companies to change their long-term business plans. Industry observers say Vietnam, India and Japan have restricted South Koreans from entering, which could lead to changes in investment and exports.