A new analysis has revealed that Japan stands as South Korea’s strongest competitor in global exports. (Image courtesy of Kobizmedia)
SEOUL, Dec. 13 (Korea Bizwire) – A new analysis has revealed that Japan stands as South Korea’s strongest competitor in global exports, with the two countries sharing nine out of their top 10 export items.
According to a report titled “Analysis of Global Competition Trends in Top 10 Export Items” released by the Korea Trade-Investment Promotion Agency (KOTRA) on December 12, Japan showed the highest export competition index with South Korea at 46.8. Singapore followed at 40.1, then Germany at 39.8, the United States at 39.1, and China at 38.5.
A high export competition index indicates similarity in export structures. While South Korea and Japan overlapped in nine of their top 10 export items, Germany and China shared seven items with South Korea. Specifically, Japan and Germany had high export shares in automobiles, auto parts, and machinery. The United States led in petroleum products, chemical industry products, and machinery. China’s exports were dominated by machinery, electrical and electronic products, steel, and automobiles and auto parts.
The analysis found that competition was most intense in high-tech industries, including semiconductors, automobiles and auto parts, shipbuilding, and medical, precision, and optical instruments. South Korea faced increased competition with eight countries in semiconductors and medical/precision/optical instruments, while competition intensified with seven countries in automobiles and auto parts. In shipbuilding, competition increased with four countries: China, Japan, the Netherlands, and India, with the steepest rise in competition observed between South Korea and China, and South Korea and Japan.
Export competition generally declined in manufacturing sectors such as machinery, electrical and electronics, and plastics and rubber. In steel and non-ferrous metals, competition between South Korea and China increased due to a surplus of Chinese steel in the global market. The chemical industry saw intensified competition with China and France, while petroleum products faced stronger competition from India.
While export competition with major countries like Japan and the United States showed a declining trend, except for China and Mexico, KOTRA explained that this doesn’t necessarily indicate reduced competition. Instead, competition has become more concentrated in key industries such as semiconductors and automobiles/auto parts. The dispersion of manufacturing bases to Mexico and Southeast Asia also influenced these trends.
“Major export powerhouses like the United States and China are actively supporting and regulating high-tech industries,” said Lee Jihyung, who heads KOTRA’s International Trade & Economic Collaboration Division. “We will develop various support programs based on our companies’ needs, including supply chain diversification, expansion of business partnerships, and technological cooperation.”
Ashley Song (ashley@koreabizwire.com)
