The South Korean government says it will spend around $6.5 billion in the next five years to help the local materials, components and equipment sectors and lower its dependence on Japanese imports. This follows Japan's government decision to restrict some material exports, including fluorinated polyimide, to South Korea, following a diplomatic tension between the two countries.
Korea hopes to ensure a stable supply of 100 strategic items (selected from a list of 1,100 industrial items that are imported mostly from Japan) and will assist local R&D activities, lower import barriers and reach out to suppliers in other countries. Korea mostly aims to protect its chips, displays, cars, electronics, equipment and chemicals industries.
Polyimide, on of the three materials Japan has restricted, is required for OLED production, and Japan controls about 90% of the world's production. According to a report from Korea, Samsung and other companies have warned the Korean government that production in some plants could be halted as early as by the end of July if these materials are not available. It is not clear what is the situation of Samsung's (and LG's) OLED production as this date already passed.
