When South export growth stalled some Korean firms suggested that Korea primary problem was the weakness in Japanese yen?

The claim that South Korea's primary problem was the weakness of the Japanese yen during the period when South Korea's export growth stalled is not entirely accurate. While the weakness of the Japanese yen did have an impact on South Korea's economy, it was not the only or primary factor contributing to the slowdown in export growth.

Here are some key reasons why South Korea's export growth stalled during that period:

1. Global Economic Slowdown: The global economy experienced a slowdown during that time, which had a significant impact on demand for South Korean exports. The financial crisis of 2008 and the subsequent recession led to decreased consumer spending and investment in many major markets for South Korean goods.

2. Strengthening of the South Korean Won: The appreciation of the South Korean won against other major currencies, including the Japanese yen, made South Korean exports more expensive for foreign buyers. This reduced the competitiveness of South Korean products in international markets.

3. Rising Labor Costs: Increasing labor costs in South Korea also eroded the competitiveness of its exports. As wages and benefits rose, South Korean manufacturers found it more difficult to maintain low production costs and compete with producers in other countries with lower labor costs.

4. Shifting Global Supply Chains: Changes in global supply chains also played a role in South Korea's export slowdown. Many multinational companies began to diversify their production bases to countries with lower labor costs and more favorable business environments, leading to some relocation of manufacturing activities out of South Korea.

5. Changing Trade Patterns: South Korea also faced challenges in adapting to changing trade patterns. The rise of China as a major manufacturing hub and the increasing trade competitiveness of other Asian economies created additional competition for South Korean exports.

While the weakness of the Japanese yen did have some negative effects on South Korea's exports, it was not the primary cause of the export growth slowdown. The combination of global economic conditions, currency fluctuations, rising labor costs, shifting supply chains, and evolving trade patterns all contributed to the challenges faced by South Korea's export sector during that period.