Posted August. 19, 2002 22:24,
A heated competition is expected between Korean companies and Chinese counterparts in almost all industries other than auto industry. The competition will emerge in the Third-nation markets staring in about 3 years. It is also predicted that, due to the uprising competitive edge of China, Koreas auto and microchip industries will face a mild competition in the mainland, China.
According to the KIETs recent report titled Comparison of Major Industries of Korea and China in 2005, Korea will retain its edge only in auto and microchip industries in the Third-world market. The report compares two countries in 9 major industries such as electronics, auto and ship-building.
But in the auto industry itself, Korea will encounter a mild competition from China since China is expected to sharpen up its production ability with many foreign companies advance into its market.
In terms of microchips, Korea will still successfully retain its absolute edge in 2005 concerning D rams. But other than that, China will have caught up with Korea very closely in the Third-world and Chinese markets.
In the refinery industry where domestic companies exceed Chinese corporations in terms of size of production and exportation, and technology, Koreas edge will be modified from the current advantageous to mildly advantageous. In ship-building industry, on the other hand, Korea will witness itself fighting with Chinas rising competition. Thus, the level of competition will be from mild to severe in the Third countries.
Korean shoe-makers will concentrate on exportation of parts in 2005. Thus, China which currently shows an overwhelming competitive edge in that industry will turn the competition between two countries from sever to mild in favor of China, widening the gap between them.
The report analyzed, The future should be found in retaining and cooperation. In areas where Korea is competitive, continuing investment in R&D and technology development will retain its advantage. In the meanwhile, Korea should find a way to co-exist with China through supplementation and thus can survive in the world market.