[Taiwan] Accuse of human-rights abuses — SOUTH KOREA → TAIWAN

Supply-chain Risk Briefing

Summary

On April 16, 2024, an issue arose in Taiwan criticizing South Korea for human rights violations, assessed as a medium-level risk with a tension index of -2. The possibility of diplomatic friction between the two countries has been raised, which could affect economic cooperation and supply-chain stability.

Supply-chain impact

• Semiconductor supply-chain instability: As Taiwan is a key hub for global semiconductor production, diplomatic tensions between Korea and Taiwan could cause disruptions in semiconductor materials and components trade
• Electronics industry cooperation contraction: Concerns over stiffening of supply-chain cooperation relations between the two countries in electronic products and components, with particular impact expected in memory semiconductors and display sectors
• Technology cooperation delays: Increased uncertainty in Korean companies' Taiwan investments and technology cooperation projects, necessitating revisions to supply-chain diversification strategies

Watch points

• Official positions of both governments: Assess the extent of conflict escalation based on whether the Korean Ministry of Foreign Affairs and Taiwan government issue follow-up statements and clarifications
• Changes in economic cooperation indicators: Need to track changes in bilateral trade volumes, investment agreement progress, and inter-company transaction patterns over the next 2-4 weeks