Korean Media: The Comprehensive Rise of Chinese Brands Shakes Up Korea's Manufacturing Industry!
On June 12, South Korean media outlet *JoongAng Economy* published an article stating that the surge from Chinese enterprises is shaking the entire South Korean manufacturing sector. Chinese companies are rapidly expanding their market share in key industries across South Korea, including home appliances, electric vehicles, and batteries.
The home appliance industry serves as a typical example. With global television market growth slowing down, Chinese firms such as TCL and Hisense are intensifying their market presence. In the robotic vacuum cleaner market, Chinese companies like Roborock, Ecovacs, and Dreame captured more than half of the global market share last year and are now swiftly expanding into high-end segments.
Chinese enterprises are also rapidly increasing their foothold in the electric vehicle market. Automakers including BYD, Zeekr, XPeng, and Chery are accelerating their entry into the South Korean market. Notably, BYD has recently joined the "10,000-unit club" in South Korea’s imported car market this year. Geely Group’s premium brand Zeekr plans to soon launch its high-end electric SUV model “7X,” while XPeng has already completed the establishment of its South Korean subsidiary.
The battery industry follows a similar trend. Chinese companies such as CATL and BYD are rapidly expanding their global market share through aggressive capacity expansion and price competitiveness. Meanwhile, South Korea’s display and steel industries are facing mounting profit pressures due to the massive influx of Chinese products.
South Korean businesses have begun taking action. Samsung Electronics is focusing on improving production efficiency—outsourcing parts of its home appliance production lines, reorganizing its operations in China, and accelerating its transition toward artificial intelligence, semiconductors, and automotive electronics. LG Electronics, meanwhile, is concentrating on expanding its B2B business related to automotive electronics and artificial intelligence. Hyundai Motor Group is also defending profitability through a strategic focus on hybrid vehicles and luxury cars.
A South Korean industry insider remarked: “In the past, competitors were only competitive on price. Now, they possess technological strength, production efficiency, and supply chain capabilities. South Korean enterprises inevitably face a shift—from simple market share competition to strategic transformation centered on profitability and future business models.”
Original article: toutiao.com/article/1867777447840779/
Disclaimer: The views expressed in this article are those of the author(s) alone.