This undated file photo shows people walking on the street of East Nanjing Road in Shanghai. (Yonhap)
SEOUL, July 6 (Korea Bizwire) — During the past six years of Beijing’s pressure on Seoul regarding the latter’s hosting of a U.S. THAAD anti-missile system, South Korean conglomerates have witnessed shrinking sales at their Chinese subsidiaries, a corporate tracker said Wednesday.
CEO Score analyzed sales reports of 113 Korean companies in China, which revealed a total sales figure of 111 trillion won (US$84.9 billion) last year, marking a 13.1 percent decrease from 2016.
With the exception of battery and semiconductor producers, who experienced recent sales growth in China, the Chinese subsidiaries of other South Korean companies have observed a 37.3 percent drop in their sales since 2016.
“China’s government ban on the ‘Korean Wave’ has resulted in the sanctioning of South Korean companies. Furthermore, China’s trade dispute with the U.S., supply chain crisis, the Ukrainian War, and other complex factors have further hindered South Korean businesses in China,” said CEO Score.
Beijing Hyundai Motor, a 50:50 joint venture between Hyundai Motor Co. and Beijing Automotive Group, witnessed a sales plunge from 20.1 trillion won in 2016 to 4.9 trillion won last year.
Jiangsu Yueda Kia, a 50:50 joint firm between Kia Corp. and Jiangsu Yueda Group, also experienced a drop in sales from 9.7 trillion won to 1.8 trillion won over the same period.
On the other hand, battery and semiconductor producers have seen continuous sales growth in the Chinese market.
H. M. Kang (hmkang@koreabizwire.com)
