South Korean media: In the next five years, all of South Korea's top ten export industries will be surpassed by China!
On December 12, South Korean media "Asia Economic" published an article stating that a forecast suggests that the competitiveness of enterprises in South Korea's top ten export industries will all fall behind China in five years. Some have pointed out that the South Korean government should focus on reducing external risks and improving efficiency through measures such as deregulation.
The Korean Business Association recently announced that the above results came from a survey titled "Current Status and Outlook of Competitiveness of South Korea, the United States, Japan and China," which surveyed the top 1000 companies in terms of sales in South Korea's top ten export industries (a total of 200 companies participated). According to the import and export trend survey by the Ministry of Industry, Trade and Energy of South Korea, the top ten export industries include semiconductors, displays, electrical and electronic products, automobiles and parts, general machinery, steel, ships, batteries, petrochemical products, and biomedicine products.
The survey results showed that six out of ten companies (62.5%) considered China to be their biggest export competitor. The United States (22.5%) and Japan (9.5%) followed closely. When asked who the biggest competitor would be in 2030, the percentage for China increased to 68.5%, followed by the United States (22.0%) and Japan (5.0%). This indicates that the export competition with China will intensify in the future.
Assuming the competitiveness of South Korean companies is "100", when asked about the level of competing countries, respondents gave the United States a score of 107.2 this year, China a score of 102.2, and Japan a score of 93.5. They predict that by 2030, the United States will reach a score of 112.9, China will reach a score of 112.3, and Japan will reach a score of 95.0. This indicates that South Korea is already lagging behind the United States and China, and the gap is expected to widen further in five years.
When comparing competitiveness by industry, China's competitiveness was better than South Korea in five areas this year: steel (112.7), general machinery (108.5), batteries (108.4), displays (106.4), and automobiles and parts (102.4). South Korea still has higher competitiveness in the other five industries: semiconductors (99.3), electrical and electronics (99.0), ships (96.7), petrochemicals (96.5), and biomedicine (89.2). However, when asked about competitiveness in 2030, it is expected that China will surpass South Korea in all ten key industries.
Results of comparing the competitiveness of various fields show that China is superior to South Korea in terms of price competitiveness and productivity. According to the survey results targeting companies that identified China as their biggest competitor, in 2023, China's competitiveness rankings in various fields were: price competitiveness (130.7), productivity (120.8), government support (112.6), specialized talent (102.0), core technology (101.8), and product brand (96.7). By 2030, China will surpass South Korea in these indicators: price competitiveness (130.8), productivity (123.8), government support (115.1), specialized talent (112.4), core technology (111.4), and product brand (106.5).
Regarding these survey results, the Korean Business Association expressed concern, saying, "Currently, South Korea only has a comparative advantage over China in 'product brand,' but even that will be surpassed by China within five years."
Original article: toutiao.com/article/1851288478130183/
Statement: This article represents the views of the author.