The competitiveness of Korea's top 10 materials and parts exports has deteriorated, with four of them at risk of being overtaken by Chinese rivals, experts warn.
The Hyundai Research Institute in a report Sunday compared the competitiveness of Korean and Chinese-made materials and parts for industrial and commercial use. It found that the quality of 63 percent of Korean-made components had worsened compared to rival Chinese manufacturers’.
Some 41 percent of the top Korean-made parts for general machinery, metal fabrication, office products, precision machinery and others are about to be overtaken by Chinese products.
Competition between the two countries is turning against Korea over 28 out of the 46 components surveyed, and on 19 Chinese manufacturers are poised to overtake, the institute claims.
"China is actively strengthening the competitiveness of materials and parts for industrial and commercial use aiming to produce 80 percent of key components for shipbuilding and precision machinery," said Han Jae-jin at the institute. "We need to boost the competitiveness of parts industries that are highly dependent on exports to China."