[Tokyo, Tokyo, Japan] Seize property/assets — EMBASSY

Supply-chain Risk Briefing

1. Summary

An embassy-related asset seizure incident occurred in Tokyo, Japan, which is analyzed to be connected to the Japanese government's protest against the Korean court's order to sell Mitsubishi Heavy Industries assets. With a tension index of -9.2, diplomatic conflicts between the two countries are intensifying, raising concerns about potential expansion into economic and trade sectors.

2. Supply-chain impact

• Disruption in Korea-Japan industrial cooperation: Expected increase in instability of parts and materials supply chains between the two countries in key manufacturing sectors including semiconductors, automotive, and shipbuilding
• Technology exchange restrictions: Concerns about global supply chain disruptions if mutual sanctions expand in advanced manufacturing technology and critical component supply
• Logistics network impact: Possibility of extended lead times due to administrative delays or strengthened inspections in Korea-Japan maritime shipping routes and air cargo transportation
• Intermediate goods procurement risk: Increased need for domestic manufacturers to secure alternative suppliers if Japan restricts exports of precision chemicals and electronic components to Korea

3. Watch points

• Additional sanctions measures: Whether both governments announce additional economic sanctions or trade regulations, and trends in expanding target items
• Corporate response: Supply chain diversification strategies of major manufacturers in both Korea and Japan, and current status of production disruptions
• Diplomatic resolution: Progress in consultations between diplomatic authorities of both countries and outcomes of mediation efforts to ease conflicts