Export Focused on North East Asia

The reason why export growth is attributed to North East Asia is because China`s economy is growing up rapidly and economic crisis of North East Asia that occurred at the end of 1990s` is over.

Export to China among four nations in North East Asia ranked 0.6% in 1988, 8.8%in 1996, 10.7% in 2000, and 12.1% in 2001 and 14.2 this year.

Export to Japan lowered since the end of 1980s`, recording 19.8% in 1988, and 9.4% this year. Export to Taiwan and Hong Kong increased from 4% in 1997 to 5% this year.

On the other hand, export to U.S and EU that made up 50.5% in 1988, maintained a downward trend such as 35.4% in 2000, 33.8% in 2001 and 33.2% this year.

Especially, export to U.S in past twenty years has highly decreased like 20% this year from 35% in 1988.

Kim Geuk-soo, Director of tendency analysis in Trade Association indicated, “export to China specially in IT fields like mobile, computer, electronics, etc is rapidly increasing 50% every year from recent 2~3 years” and “ we need strategy for specializing in exports by local items and not by concentrating on scale ”

Director Kim added, “ reduction of export to U.S and EU is related to deflationary trends, however, it can exert big influence on export price policy as it is a targeted region for high price export. ”

Mi-Kyung Jung mickey@donga.com