The primary aim of the study is to figure out the competition and complementary relationship in component and material industries among Korea, China and Japan and create a proper counterplan for the Korean government and enterprises. Different from many existing researches that have focused more on the general trade of finished goods, this report aims to focus on the component and material industries and analyze them accordingly. The importance of conducting this report is also led by the rising interest in Korean component and material industries that heavily on Japanese industries, particularly after the severe earthquake in Japan. Firstly, the global positioning, competition and complementary relationship in the component and material industries among Korea, China and Japan and their change between 2005 and 2009 (2010) are considered and analyzed. Also, the specialization structure in components and materials among three countries is considered. Components industries and materials industries will be studied separately. Promising export items to China and Japan and the import substitution from Japan are selected based on major component items in HS 10 unit such as electronic components, automobile components and steel products. Then the policies and developmental direction of component and material industries among the three countries are reviewed in order to figure out the current competition and the state of cooperation as well as the future direction of cooperation among the three countries. The indepth analysis of major components such as LCD and automobile components and specialization structure of steel industries are also conducted. Due to the expansion of the domestic market and the increased dependence on the local content in China, Korea has expected to face a large change in the export of components and materials to China. And also, its continuing reliance on the Japanese component and material industries requires studying the specialization structure between Korea-Japan, Korea-China and Korea-China-Japan. This study presents the direction of policies to promote the importance of specialization structure in component and material industries instead of the competitive relationship among the three countries. And, it reviewes the achievements of Korean policies in component and material industries to suggest the developmental direction of the future.

Chapter 1. Introduction 1. Necessity and Aims of Study (1) Necessity of the Study (2) Aims of the Study 2. Method of the Study (1) Differentiating from Previous Studies (2) Method of Research (3) Framework of the Study Chapter 2. Analysis on Changes and Competitiveness of Korean Chinese and Japanese Component and Material Industries 1. Status of Korean, Chinese and Japanese Component and Material Industry (1) Growth and Structure of the World Component and Material Industry (2) The Share of Korean, Chinese and Japanese Component and Material Industries in the Global Market (3) Status of Components and Materials Imported and Exported by Korea, China and Japan 2. Components and Materials Trade Structure Change in Korea, China and Japan (1) Component and Material Import/Export Structure Change in Korea, China and Japan (2) Changes in Korea-to-China/Korea-to-Japan Component and Material Import/Export Structure 3. Analysis of Competitiveness and Collaborative Relationship of Korea-China-Japan (1) Competitiveness Analysis (2) Analysis of the complementary Relationship of Korea-China-Japan 4. Analysis on Competitiveness of Components and Materials in Korea, China and Japan (1) Changes of Competitiveness in the Global Market (2) Changes in Competitiveness (3) Finding Potential Items for Korea-to-China, and Korea-to-Japan Trade Chapter 3. Competitiveness Enhancement Strategy in Component and Material Industries of Korea, China and Japan 1. Development Strategy and Policy of Component and Material Industries in Korea (1) Status of Component and Material Industry (2) Major Contents and Evaluation in Component and Material Industries (3) The Direction of Components and Materials Industry Advancement and New Industry Development (4) The Development Prospect and Issues of Component and Material Industry 2. Development Strategy and Poliay of Japanese Component and Material Industry (1) Status of Japanese Component and Material Industry (2) The Direction of Components and Materials Industry Advancement and New Industry Development (3) The Development Prospect and Issues of Component and Material Industry 3. Policies for Component and Material Industry in China (1) Status and Issues of Component and Material Industry (2) Changes and Characteristics of Policies of China’s Component and Material Industry (3) Policy of Major Components and Materinals Industries Chapter 4. Case Study on Competition and Cooperation among Korea, China and Japan in Major Component and Material Industry 1. LCD Industry (1) Characteristics of the LCD Industry (2) Specialization Structure of Korea, China and Japan (3) Competition Structure among Korea, China and Japan (4) Evaluation and Implications 2. Automobile Components (1) Specialization Structure of Korea, China and Japan (2) Competition Structure of Korea, China and Japan (3) Evaluation and Implications 3. Steel Industry (1) Status and Inter-dependence in the Steel Industry (2) Specialization Structure (3) Investment Cooperation (4) Competitive Structure Analysis (5) Evaluation and Implications Chapter 5. Changes in Specialization Structure of Korea-China-Japan Components and Materials Industry and Political Issues 1. The Characteristics of Changes in Specialization Structure of Korea-China-Japan Components and Materials Industry and Developmental Direction (1) The Characteristic of Changes in Specialization Structure and Implications (2) The Changes of Specialization Structure Based on the Case of Major Component and Material Industries (3) Comparison of Component and Material Industry Development Directions 2. Policy Issues for Specialization Promotion of Korea, China and Japan (1) Policy to be the North-East Asian Leader in the Components and Materials Market (2) Restructuring of Components and Materials Supply Chain Systems after the Japanes 3.11 Earthquake (3) Effective Specialization Strategy between Korea and China and Establishing Expansion Strategy into China (4) Infrastructure Development for Promoting Specialization by Root Industry Enhancement of Korea (5) Promotion of Standardization and Commonality in Component and Material Industry among Korea, China and Japan (6) Promotion of Cooperation for New Growth Industry among the Three Countries by Establishment of Circum-Yellow-Sea Components and Materials Agency (7) Harmonization of Trade and Industry (components and materials) Codes among Korea, China and Japan (8) Arranging Circumstance for Korea’s Investment in Japan and M&A Activities in Japan