South Korea holds the fourth position globally concerning the installation of industrial robots and leads the world in robot density. Nevertheless, a substantial 71.2% of its total robot market shipments are geared toward domestic consumption, with a notably lower export proportion. In stark contrast, Japan, which secures the second spot globally in terms of installations, exports more than 70% of its shipments. This disparity arises from fundamental differences in the supply chain structures of the two nations: South Korea's robot industry is highly dependent on imports for crucial materials and components, boasting a domestic production rate of merely around 40%. The growth in finished product manufacturing has exacerbated this reliance on imports. On the other hand, Japan has forged a robust "vertically integrated" supply chain, leveraging its technologies for recycling rare elements and advanced materials. A senior researcher from the Korea Trade Association proposes that South Korea should redirect its strategic emphasis from manufacturing and application to supply chain stabilization, aiming to bolster the future competitiveness of its robot industry.
