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[Anchor Lead]

Despite China's retaliation over Korea's decision to deploy the U.S. THAAD missile defense system, some Korean businesses have seen little impact thanks to their technological advantages. Let’s find out more.

[Pkg]

This factory in Korea manufactures memory devices for computers. The memory chip processing equipment operates around the clock.The memory chips must be less than one-fifth the thickness of human hair in order to be able to store the desired amount of data.

[Soundbite] Ahn Min-chul(Vice President, Memory Chip Manufacturer) : "The thinner the memory chips, the easier they break. Keeping them thin yet sturdy and of high quality determines their competitiveness."

This company's exports to China have not been affected by China's retaliatory measures. High-speed and high-capacity storage devices are essential for the latest models of computers and mobile phones. China has the facilities to manufacture them, but it still lacks technological expertise. Korea's exports of high-tech computers and peripheral devices to China recorded 260 million U.S. dollars last month alone, growing 2.6 percent despite the recent row between the two countries. The medical device market is also among the fields where China has yet to catch up with Korea. Many Chinese buyers come to purchase Korean medical devices, because they value performance over price.

[Soundbite] Kim Ho-young(Blood Sugar Measurement Device Manufacturer) : "Korean products sell for much higher prices. It means that their quality is much better as well."

Korea's February export indices show that the best way to minimize the China risk is by expanding the production of items that China cannot produce on its own.