South Korea's economic pressure, industrial structure challenges, where to go in the future?
In recent years, South Korea's economy has suffered a great shock, and if it is not careful, it is in danger of returning to the world of development. South Korea's exports in 2022 fell by 74%, and its ** deficit is close to 10 billion. At the same time, South Korea's deficit with China has reached 18 billion, the first time in 31 years. This news made the South Koreans feel like a lightning strike.
Products made in Korea in the past are now popular in the Chinese market, whether it is mobile phones, TVs or refrigerators. By 16 years, the sales of Korean cars had surpassed those of Japan and Germany. However, things are quite the opposite. China's Huawei, BOE, CATL, BYD and other companies are gradually taking over products produced in South Korea.
In the field of sedans, Korean cars account for only 1% of China's total6%, insignificant. In the shipbuilding sector, all orders from South Korea were taken by China. China scored 57. in 11 months of the year5% of the world's newbuilding orders, compared to South Korea's newbuilding volume, fell by 39% to only 25%, less than half of the Chinese market.
South Korea is also increasingly dependent on China. South Korea has set a new record by importing more than 100,000 tons of hot sauce from China in the past year. Ninety-nine percent of the kimchi imported from Korea is shipped from China. In terms of high-end manufacturing, South Korea imports 80% of the rare earths used to make chips from China. China stopped supplying urea to South Korea, leaving South Korean companies in trouble again.
But that's not to say that South Korea doesn't have any hope. South Korea is one of the most advanced manufacturing countries in the world. In terms of chips and displays, companies such as LG and Julun are still at the forefront of the world. Especially in emerging industries such as 5G, artificial intelligence, and the Internet of Things, these companies still play a pivotal role.
South Korea should focus on its own creativity and strengthen the training of its talents. For a long time, South Korea's production, technology, and production of foreign companies and foreign enterprises have caused the domestic industry to be uncompetitive. To this end, South Korea should increase investment in its own R&D and innovation, and cultivate its own professional and professional workforce, so as to gradually improve its core competitiveness in the industry.
It is true that there are huge pressures and challenges in South Korea's economy, but there is no way to solve them. South Korea can continue to lead the world by strengthening local innovation, cultivating local talent and technology, and expanding the international market.