###### Abstract  
This study examines the role of the natural gas supply sector in the national economy by applying input-output analysis to South Korea and Japan. Specifically, the production-inducing effect, value-added creation effect, wage-inducing effect, employment-inducing effect, supply shortage effect, and price-inducing effect were analyzed using an input-output table of South Korea and Japan. As a result, the production-inducing effect, value-added creation effect, and employment-inducing effect of same investment amount in the natural gas supply sector were greater in Japan than in South Korea. On the other hand, the wage-inducing effect of an investment of USD 1 in the natural gas supply sector was found to be greater in South Korea than in Japan. In addition, the supply shortage effect and price-inducing effect in the natural gas supply sector were greater in South Korea than in Japan. The causes of differences in analysis results for each country and their implications were discussed. The results of this study could be a useful reference for the government to establish policies related to natural gas supply in the future. natural gas supply; economic effect; input-output analysis; South Korea; Japan +
Footnote †: journal: Medical  
economic technique because it can be used to derive various economic effects [17; 18; 19; 20; 21]. IO analysis was developed by a Nobel prizewinner in economics, [PERSON], and is widely used in the field of economics. More specifically, in this paper, three models have been applied: a demand-driven model, a supply-driven model, and the Leontief price model. For three reasons, South Korea and Japan were adopted as the spatial scope of application. First, the role of NG as an energy source is very important in South Korea and Japan, two countries located in East Asia and geographically adjacent to each other. In particular, Japan imports 101.3 bcm of liquefied NG (LNG), and South Korea 64.1 bcm, making these countries the world's second and third largest consumers of LNG, respectively [1]. There are two price indices used in the international LNG spot market: Title Transfer Facility (TTF) and Japan Korea Maker (JKM). In other words, these two countries are important players in the LNG market to the extent that there is an LNG international price index targeting South Korea and Japan. Although it has recently been reversed, as the JKM price index has traditionally been higher than the TTF price index, stable LNG imports have traditionally been treated as an important energy issue for countries [22]. Second, as NG supply conditions in South Korea and Japan are very similar, they are appropriate for comparison. If the conditions are different, the implications of the comparison will be limited. However, the two countries have in common that most of the NG consumed is imported from abroad, as NG is rarely produced domestically. Moreover, although Japan is an island country and South Korea is not an island country but a peninsular country, South Korea is militarily hostile to North Korea in the north. Thus, South Korea is no different from island countries when it comes to NG supply. Therefore, both countries have something in common with regard to the import of LNG, that is, it is not piped NG. The main destinations of LNG imports are countries in the Middle East, including Qatar and Oman. Third, the uses of NG consumption in South Korea and Japan are similar. The amount of NG used for power generation and city gas in both countries is approximately the same [23; 24]. Because the two countries are located at approximately the same latitude, there is little difference in NG consumption patterns for heating or cooling. Therefore, in the international LNG market, South Korea and Japan introduce LNG through fierce competition. In short, because South Korea and Japan have similarities in the NG consumption structure, introduction type, and supply structure, it seems appropriate to compare these two countries.