China > Japan

`13.2 percent (China) vs. 9.5 percent (Japan)`

This is the ratio of exports to China and Japan out of total exports of Korea from January till April. The ratio of exports to China exceeded those to Japan from last year widening the gap.

Total trade volume with Japan is more than with China due to overwhelmingly more imports from Japan. The imports from Japan, however, are decreasing, while those from China rapidly increasing.

From such trend, China is likely to be the second trading partner of Korea surpassing Japan by 2005. That means the structure of foreign trade of Korea started changing.

The ratio of Korea¡¯s exports to Japan dropped to 9.5 percent last year from 13.6 percent in 1995. The ratio of import from Japan also fell to 18.6 percent from 24.1 percent during the same period. On the contrary, the ratio of exports to China rose to 13.2 percent from 7.3 percent, and import ratio to 10.8 percent from 5.5 percent during the same period.

Korea Trade-Investment Promotion Agency (KOTRA) announced on the 2nd that the exports to China escalated by around 6.84 times, and investment around 26 times since the Korea-China treaty of amity in 1992. The number of export product categories to China increased from 750 to 1030, which is more than those to Japan and America.

The Ministry of Commerce, Industry and Energy (MOCIE) explained, ¡°China¡¯s adoption of market economy and acceleration of reformation enabled the trade with geographically nearer Korea to increase, while Korea¡¯s trade with Japan has been diminishing due to the economic recess of Japan for last 10 years. ¡°

Korea¡¯s exports to Japan last year decreased 5.3 percent, while those to China increased 18.3 percent. The product categories that Korea¡¯s export decreased and China¡¯s export increased are marine products, clothes, semiconductor, computer devices, communication devices, audio and video reproducer, and so on.

Jang Yoon-Jong vice president of the Korea Institute for Industrial Economics and Trade (KIET) said, ¡°the order of Asia `the manufactory of the world` is under rearrangement by the leaping of China. Both Korea and Japan should hurry to renew the relationship with each other to open up new markets in China. ¡°

Ja-Ryong Koo bonhong@donga.com