Signals of crisis

South Korean companies forecast that Korea could be overtaken by China across all of its top 10 export industries within the next five years, according to a survey of domestic firms conducted by the Federation of Korean Industries.

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Korea has already been overtaken by China in half of its top 10 export sectors ~ steel, general machinery, secondary batteries, displays and automobiles and auto parts ~ andis expected to fall behind China in semiconductors, electrical and electronics, shipbuilding, petrochemicals and bio-health.

China's rise is nothing new, but if Korea is overtaken by China in all of its major export sectors and the gap widens, the country’s exports and growth could fall into a long slump.

Korea should take this bleak outlook seriously and find a way to boost its industrial competitiveness.

In terms of product branding, Korea was also evaluated to be a step ahead of China in six industries, but it is projected to lose its advantage to China in all six of those fields within five years.

These forecasts are shocking because they are based on the information and accumulated experience that Korean companies have gained through fierce export competition.