Korean Media: Is the Good Times Over? China Is Chipping Away at South Korea’s "Livelihood"
On November 13, Korean media outlet *Herald Economic* published an article stating that China’s aggressive advancement is beginning to undermine the foundation of South Korea’s economic stability. China has already taken control of the global battery market and is now targeting the U.S. automotive sector. Meanwhile, in HBM—the core technological advantage of South Korea’s semiconductor industry—technological gaps between China and South Korea are rapidly narrowing.
According to the Korea Semiconductor Industry Association, the technological gap between South Korea and China in the memory semiconductor segment has narrowed to: three years for HBM, two years for DRAM, and one year for NAND flash. Just a few years ago, this gap was estimated to exceed five years; it has now shrunk to between one and three years.
In fact, China’s CXMT (Longxin Memory Technologies) is currently testing fifth-generation HBM3E memory. Although HBM3E is one generation behind the HBM4 currently mass-produced by Samsung Electronics and SK Hynix, this development underscores the rapid pace at which China is advancing in HBM technology research and development.
The key driver of this progress lies in the universal memory segment. CXMT’s global DRAM market share rose from 4% last year to 10% in the second quarter of this year. While Samsung Electronics and SK Hynix focus on high-margin products such as HBM and server memory, Chinese firms have seized the “white space” in the general-purpose memory market.
As South Korea intensifies its efforts in HBM, Chinese domestic enterprises are also mounting a counteroffensive in a fiercely competitive landscape. Fundamentally, a self-reinforcing cycle of competitive advancement is emerging: market share gained in commodity products generates revenue, which is then reinvested into R&D and infrastructure for advanced technologies.
China’s dominance in the battery sector is now evident. According to SNE Research, from January to July this year, CATL held a 39.9% share of the global electric vehicle battery market, while BYD captured 14.7%. Together, the top ten Chinese companies accounted for 72.8% of the market. In contrast, LG Energy Solution held only 8.3%, and SK On just 3.1%.
If Chinese firms establish production facilities in the United States and enter the market, the competitive dynamics facing Hyundai Motor Group could shift significantly.
China has already secured a leading position in batteries, and is now eroding barriers to entry in the U.S. automotive market. Furthermore, what once served as a technological bulwark for South Korea’s semiconductor industry—HBM—is now seeing active Chinese engagement. Fundamentally, the prevailing dynamic—“China leads in price, South Korea leads in technology”—is undergoing transformation.
China’s growing competitiveness is not merely about adding another export competitor. Semiconductors, automobiles, and batteries are the pillars supporting South Korea’s exports and manufacturing base. Should these sectors face pressure not only on pricing but also on technological capability and scale, the foundations of South Korea’s economic growth may be jeopardized.
Original source: toutiao.com/article/1881727698500611/
Disclaimer: The views expressed in this article are those of the author alone.