A Comparative Study of Investment Environments in Japan and South Korea amid US Supply Chain Restructuring: The Role of Political Systems and Governance Models (2021-2026)

Amid US-led supply chain reconfiguration and rising geopolitical and economic uncertainty, Japan and South Korea are both seeking to strengthen industrial and investment resilience. Although the two countries face similar external pressures, differences in their institutional structures and government-industry relations have resulted in distinct industrial policies and corporate investment patterns. Thus, have developed significantly different investment and industrial landscapes amid US-led supply chain restructuring. This paper examines how governance models influence industrial policies and corporate responses in the two countries. Through literature review and case studies of the semiconductor and new energy industries, it analyzes differences in their investment environments. The study finds that Japan relies on coordinated governance between bureaucratic institutions and industrial organizations, thus fostering stable policies and long-term domestic investment. In contrast, South Korea's rapid coordination between government agencies and conglomerates enables efficient resource mobilization and policy responses, while also promoting greater reliance on overseas production capacity. These differences suggest that the two governance models shape investment environments characterized by stability and flexibility, respectively, with neither being absolutely superior or inferior.