August 11, 2015 13:14
Korea's major exports to China shrank in the first six months of this year, an alarming development since it accounts for about a quarter of Korea's overseas markets.
Analysis by the Chosun Ilbo and the Korea International Trade Association confirms that seven out of the top 10 exports and 19 of the top 30 fared worse in China this year.
The rapid growth of Chinese smartphone makers has been a boon to Korean exporters of chips and computer components, but shipments of car parts, petrochemical products, mobile phones and flat screens all declined.
Overall exports to China in the first six months of this year fell 2.4 percent from the same period last year.
Previously exports to China only shrank in a crisis -- in 1998 at the peak of the Asian financial crisis, in 2001 after the dotcom bubble burst, and in 2009 just after the global financial crisis. This is the first time no catastrophic external factors are to blame.
Shin Seung-kwan at KITA said, "China's economic slowdown compounded by increasing sophistication in industrial structure and strong performances of local businesses are dealing a severe blow to Korea's key exports."
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