Han Media: South Korea's manufacturing industry is struggling to catch up with China!
On December 11, the Korean media outlet "Asia Economic" published an article stating that as China gradually takes a dominant position in manufacturing across almost all fields, some point out that it is difficult for South Korea, as a competitor, to catch up. Especially in emerging industries such as electric vehicles, China has a dominant position in the supply chain, so South Korea's economic development model of being a "fast follower" also finds it hard to take effect.
Recently, Ji Wan-soo, a senior researcher at the Korea Institute of Finance, presented research results on the topic of "Strengthening South Korea's Manufacturing Industry in the Era of Economic Security" at a policy seminar. He said, "China is developing its manufacturing industry, learning from the social problems experienced after the outsourcing of American manufacturing."
Firstly, in labor-intensive industries such as footwear, China still maintains export competitiveness and market share, which is different from the historical experience of export-oriented manufacturing countries like South Korea and Japan. The reason is the lack of alternative production bases to replace China, and the nature of these industries is shifting towards platform-based industries that utilize artificial intelligence (AI) and robot technology, making it difficult for latecomers to quickly catch up. He also believes that even in capital-intensive industries where South Korea has a competitive edge, competition has become more difficult. For example, many Chinese companies rank first in South Korea's main export industries, such as semiconductors and petrochemical products.
Ji Wan-soo predicted that South Korea will face greater challenges in emerging industries such as electric vehicles and batteries, as the competitiveness of these industries is still in its early stages. He pointed out, "China plays a leading role in emerging industries by creating early markets, building industrial ecosystems, and leveraging economies of scale to dominate the supply chain. In emerging industries, China can completely independently complete R&D, market promotion, mass production, and sales, leaving little opportunity for foreign latecomers to catch up quickly." In other words, South Korea's "fast follower" growth model will be difficult to implement.
Choi Sung-jae, a senior researcher at the Korea Labor Institute, stated that with changes in South Korea's population structure, it has become increasingly difficult to utilize human resources in manufacturing. He emphasized that employers must coordinate with employees to resolve labor issues. In short, labor issues must be resolved through coordination among all stakeholders.
Original: toutiao.com/article/1851177691570187/
Statement: This article represents the views of the author himself.