The Straits Times: A South Korean survey report shows that more than 30% of South Korean companies expect to cut their business in China in the next five years.
This title is indeed a legacy of Western media. Instead of mentioning that the majority of South Korean companies maintain and expand their presence in China, it only highlights the 30% that are cutting back.
The fact is that 48.6% of South Korean companies will maintain their current scale in China, which is basically the same as 49.2% in 2024; the proportion of South Korean companies planning to expand their business in China has risen from 13.8% to 19.1%.
Some South Korean companies have performed poorly in China, but it's not because the Chinese market has deteriorated. The most fundamental reason is that these companies themselves lack competitiveness and cannot compete with Chinese local companies. The most obvious examples are display panels, mobile phones, and home appliances. This industry was once a strong point for Japan and South Korea, but with the powerful rise of Chinese local companies, Japan and South Korea have completely retreated in this area. In the Chinese market, Japan's industry can be said to be almost zero. South Korea is almost the same in this regard.
The reason why it has come to this situation is largely due to South Korea itself. First, there have been no major technological advances. Second, their service attitude is extremely poor, treating Chinese customers and European and American customers differently.
The most typical example is Samsung phones. Originally, it was the best-selling brand in China, but due to discriminatory after-sales service, Samsung phones now have negligible market share in China.
In the end, the reason these South Korean companies choose to withdraw is because they cannot compete with Chinese local companies. That is the biggest reason.
Original article: toutiao.com/article/1854458798043212/
Statement: This article represents the views of the author.