December 07, 2015 12:37
Many Korean businesses lag behind Japanese and Chinese companies both in terms of technological and price competitiveness.
Until recently Korean businesses were thought to be technologically superior to their Chinese rivals though still behind Japanese rivals, but that is no longer the case.
The Federation of Korean Industries said Sunday a survey of the competitiveness of Korean companies in 30 business sectors shows they are falling behind their Chinese rivals in price competitiveness in 21 sectors, and in 19 sectors they have been technologically overtaken or will soon be surpassed by Chinese rivals.
Fourteen Korean companies said they are almost being beaten by their Japanese rivals in terms of price competitiveness.
When it comes to competition with Chinese companies, 22 out of 24 Korean businesses projected difficult conditions. And 13 out of 20 businesses that compete with Japanese companies expect the situation to get worse.
"To survive intensifying competition with Chinese and Japanese companies, Korean businesses said the government must support R&D, reduce red tape and cut corporate taxes," said Yoo Hwan-ik at the FKI. "These reforms are needed to develop future growth engines."
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