April 23, 2015 12:18
The growth rates and profitability of Korean businesses have fallen behind those of their Chinese and Japanese rivals over the last two or three years.
Japanese businesses improved their profitability through technological development and innovation, while the weak yen bolstered the price competitiveness of their products. Chinese businesses ranked at the top in terms of profitability among the three because labor is so cheap.
The Federation of Korean Industries on Wednesday said analysis of some 5,598 listed Korean, Chinese and Japanese companies between 2007 and 2014 showed that Korean companies' revenues dropped 2.6 percent in 2013 and rose only 1.4 percent in 2014.
Japanese companies' sales increased 11.5 percent in 2013 and 4.7 percent in 2014, while those of Chinese companies rose between six and nine percent over the same period.
Eom Chi-sung at the Federation of Korean Industries said, "We need to tap into new overseas markets and expand economic reach to Latin America, the Middle East and Southeast Asia."
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