The trade gap between Korea and China is beginning to turn around, according to research released Thursday.
Industrial Info Research has found that the improvement in Korea’s market is due in large party by competition in large-scale process industries as capital and facilities are in place. Data has shown that the petrochemical industry will be suffering by 2008 as Chinese products have moved into originally Korean-based markets. According to Industrial Info’s findings, Korea’s petrochem industry exports approximately 50 percent of production and this industry is hard hit by the Middle East and China.
Earlier this year, The South Korean Finance and Economy Minister, Han Duck Soo, said that Chinese industries were improving their competitiveness by attracting large-scale foreign investment, coupled with a policy priority on science and technology. It will be essential for South Korea to improve its international competitiveness through investment in R&D and personnel development.
Industrial Info cited the example of companies like LG Chem and Hanwha, both of Seoul, experienced a drop in profits and income, due to rising competition from Chinese companies.
Chinese imports have risen over 500% since 2003 when they totaled 1.82 million tons. Imports from China are expected to hit 10 million tons by the end of this year. Hot rolled steel plate imports for the shipbuilding and construction industries rose 118.3 % to 1.41 million tons by the end of October. Cold rolled steel plate imports rose 44.7% to 140,000 tons for the period.
The entire study can be found online by clicking here.