The financial crisis in the Far East is unlikely to lead to job losses or closures of Japanese or Korean companies operating in Ireland, according to IDA Ireland. But Irish companies exporting to the troubled region will find markets more difficult as the economies slow down.

Among the major Irish exporters to Japan are Waterford Wedgwood, Irish Distillers, Irish Dresden, Printech and Claris Software. Irish exports to Japan reached £861 million in 1996 from £815 million in 1995. The major exports were data processing machinery and chemicals.

Imports from Japan were higher - £1.2 billion in 1996 from £1.06 billion in 1995. The IDA has taken a very "low profile" approach to seeking investment from Japan and other Asian economies since 1992, a spokesman said. In recent years, Japanese companies have been less interested in setting up operations in European Union countries, he said. They became disillusioned about the Single Market, their own economies slowed and they decided to focus more on larger markets closer to home, he said.

There are more than 40 Japanese-owned companies operating in Ireland employing about 4,000 people.

Most are well-established, have reached full production and are re-investing profits in their Irish operations which were set up to supply a growing European market, he said.

Companies such as Yamanouchi in Dublin and NEC in Meath are operating very successfully, he said.

"There is no reason for any diminution of existing Japanese investment in Ireland. If anything Japanese companies are likely to sell property assets in the US and the UK - not small scale industrial investments in Ireland." The IDA had never expected much investment from Korea, he said.

Four Korean companies have operations in Ireland employing about 500 people. The best known of these is Saehan Media Ireland, located in Sligo, producing video tape cassettes and reels. Saehan is operating in a very difficult market, according to the IDA spokesman. But he added that the Sligo plant was Saehan's only production unit in Europe and it needed to have a base in Europe to sell into that market.

The IDA strategy in the Asian markets is to "hold our position and keep our name up in lights so that in three to five years when the recovery comes we will be known and have a network in place. But at this stage our expectations for investment from those markets is very low".