China’s fierce pursuit leads to the complete loss of all ten major industries in South Korea within 5 years

A report released by the Korean Economic Association on the 17th shows that half of South Korea’s top ten export industries have been surpassed by China in terms of corporate competitiveness, and it is expected that the competitiveness of the top ten industries will be completely lost in five years.

According to the report, the Korean Economic Association recently conducted a survey on the competitiveness status and prospects of South Korea, the United States, China, and Japan among 200 enterprises engaged in the top ten export industries. The results showed that when asked about their current biggest competitor, 62.5% of South Korean companies answered “China”, far exceeding the number of companies that answered the United States (22.5%) and Japan (9.5%). If the time is set to 2030, the proportion of Korean companies answering “China” has further increased to 68.5%. This means that most South Korean companies believe that the competition for exports between South Korea and China will intensify.

In addition, the interviewed Korean companies generally believe that American and Chinese companies have a stronger level of competitiveness. Assuming the competitiveness standard for Korean companies is 100, the surveyed companies believe that the competitiveness levels of the United States, China, and Japan are 107.2, 102.2, and 93.5, respectively. By 2030, the ranking of competitiveness levels from high to low will be the United States (112.9), China (112.3), and Japan (95). That is to say, South Korean companies believe that the competitiveness of local enterprises has fallen behind that of China and the United States, while the competitiveness of Chinese enterprises will reach a level close to that of the United States in the next five years.

Looking at different industries, the interviewed South Korean companies believe that Chinese companies are ahead of South Korean companies in five areas: steel (112.7), general machinery (108.5), batteries (108.4), displays (106.4), and automotive and parts (102.4). However, they still lag behind South Korean companies in semiconductor (99.3), electronics and motors (99), shipbuilding (96.7), petrochemicals and petroleum products (96.5), and biological health (89.2). But according to industry predictions, the competitiveness of all ten major export industries in South Korea will be surpassed within the next five years.

The report points out that China has advantages in price competitiveness, production capacity, and government support, while the United States has advantages in branding, professional talent, and core technology. Compared with China, South Korea is currently only leading in brand competitiveness, and brand competitiveness may be surpassed in five years. Compared with the United States, it is expected that the gap between South Korea and the United States will further widen in all areas except for productivity.