Increase rate of major Korean export items to China on declining

Korea has mixed feelings in retrospect of exports toward China in the last 20 years since the establishment of diplomatic relationship between the two nations.

The product that has made the biggest contribution for Korean export business toward China, was flat display.
According to a report, titled “Export trend of major Korean products toward China”, released by Kotra Shanghai Trade Office recently, flat display export to China contributed most greatly to the exporting business of Korea. Its export increased 203 times during the first 10 years since the establishment of diplomatic ties and further increased whopping 427 times during one decade since then.

55inch 3D TV panel (Source: Samsung Electronics)

Those  concerned in China said “In case of Korea-made large-size flat display product, it is excellent both in technology and performances as well as being cheap for its high quality in comparison with Japanese products. So imports from Chinese side were greatly on the rise meanwhile”.

He added that China has to prepare countermeasures such as production line construction  on the spot, explaining that, “If China’s technology increases greatly within 2~3 years further, there are possibilities for Korea-made import to drop sharply.

Exports of wireless telecommunication equipment, on the contrary, have been slowing down very distinctively. During the first 10 years since the establishment of diplomatic ties, exports of wireless telecommunication equipment increased 350 times, but during the second 10 years, it increased merely 0.9 times.

In case of semiconductor exports too, it was on the rise 105 times but increased just 19 times during the second 10 years. So exports of main items toward China were slowed down conspicuously since 2000s compared with the initial period of diplomatic ties.

Thanks to a boom of Korean wave, demands about cosmetics and clothes are on the rise, but cosmetics exports which enjoyed 269 times of increase during the first 10 years since the establishment of diplomatic ties, jumped just 4 times during the next 10 years.

Besides, exports of computer, clothes, household items toward China were on the rise 48 times, 13 times and 9 times respectively during the first 10 years whereas exports of those items were confirmed to have risen only 0.5 times, 0.6 times, and 0.4 times respectively.

The concerned people who are involved in clothes import from Korea point out: “Korean clothes show boundaries in pioneering market due to the shortage of product development which tailors to China on the spot compared with their product power or there are many cases which didn’t construct brand image properly.” So he emphasized that Korean supplier need to develop products which reflect Chinese taste, throwing away a vague hope that Korean product will be welcomed in China unconditionally.

 Kim Sang-chul, head of Kotra Shanghai Office stressed that “Proactive publicity and localized product development are essential for the inroad enlargement of China domestic market,” pointing out there are too many cases that our products didn’t construct brand awareness degree properly on the spot due to publicity shortage.

news@theasian.asia