New East Asia Foundation study explores yen exchange rate influence on the Republic of Korea economy

South Korea seems to have taken less of a hit than expected from the weak Japanese yen, based on the export trajectories since the 2008 global financial crisis of Korean and Japanese products with high export similarity. This seems to be because the weak yen helped the price competitiveness of South Korean products by lowering the price of Japanese components and materials. Nonetheless, a continually weak yen may eventually harm the Korean economy. The Korean government should, therefore, back heavy investments in research and development to heighten the productivity and competitiveness of Korean merchandise.
Full text at the East Asia Foundation web-site