October 28, 2014 12:56
Most of Korea's leading export products will be overtaken by Chinese rivals by 2018, according to a state-run research institute.
Suh Dong-hyuk of the Korea Institute for Industrial Economics and Trade on Monday said Chinese businesses are either catching up with or overtaking almost all of Korea's key industrial sectors due to massive investments and technological innovations.
The institute's analysis shows Korea's main rival in eight out of nine major industrial sectors shifting from Japan, the U.S., Europe and Taiwan to China.
China is forecast to fare better than Korea in communications equipment, display, petrochemical and shipbuilding industries by 2018.
Korea's steel and textile sectors will fall increasingly behind their Chinese rivals, while the general machinery and semiconductor industries will see heightened competition from China.
The only sector where Korea will manage to hold its lead is the automotive industry.
The IT industry will be hit especially hard as Chinese smartphone and LCD panel makers are already hot on the heels of their Korean rivals.
"Korea may lead the world in smartphones and LCD panels now, but China is going to catch up within a couple of years," Suh said.
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