2023 is the first time in nearly 30 years that South Korea has a ** deficit with our country. This means that China sells more goods to South Koreans than it buys from South Korea. In the past, South Korea has been exporting a variety of goods to China, from large cars and ships to parts for mobile phones and even small cosmetics. South Korea's culture has also been deeply influenced by China. But since last year, the situation has reversed.
Why did South Korea suddenly lose its competitive advantage? In fact, starting in 2023, even kimchi, which we jokingly call the national dish of South Korea, will start importing from China. This is despite the fact that South Korea had exported 1$400 million in kimchi, but at the same time imported 1$500 million in kimchi, 99% of which comes from China. Kimchi has become an important industry in Shandong.
How far has this even gotten? Part of South Korea's rice** is even 3-5 times that of China. Some people have already started to fly from Qingdao and bring rice to South Korea for sale. There are also agricultural products such as chili noodles and sesame seeds, which can cost about 400-500 yuan for a flight, but if you can successfully sell these agricultural products, you can make thousands of yuan in profits.
Now, we see that all of South Korea's industrial industries are gradually being replaced by China. Core industries such as shipbuilding, mobile phones, automobiles, and semiconductors are all facing tremendous pressure. Among them, China's shipbuilding industry has comprehensively surpassed South Korea; In the mobile phone market, Samsung mobile phones have basically withdrawn from the Chinese market; In terms of mobile phone parts, the mobile phone panel business, which previously brought huge profits to South Korea, has now been caught up by BOE and Shenzhen Tianma.
Recently, there were news reports that Samsung Electronics' operating profit in 2023 decreased by 84% year-on-year, showing an almost cliff-like **. As a ** in South Korea, I will undoubtedly feel anxious in the face of such a situation.
This reversal of China and South Korea** is not just a matter of losing the Chinese market. Chinese companies are competing with South Korean companies on a global scale. Whether it is Huawei and Xiaomi encountered in the Southeast Asian market, or Chinese new energy vehicles encountered in the European market, Korean companies are facing tremendous pressure.
Previously, a quarter of South Korea's exports were sold to China. And now, as China begins to substitute Korean products around the world, South Korea** is even considering amending its labor laws to extend the legal working week to 69 hours. Workers in Seoul also had to start working overtime to compete directly with the workers in Zhengzhou.
But South Korea's biggest frustration is that China has never regarded South Korea as a competitor, but has always focused on its own industrial upgrading and development into a high-profit industry. Inadvertently, almost all industries in South Korea were destroyed. Perhaps in the coming years, while South Korea still retains its status as a developed country in terms of chips and electronics, its overall economic situation may face more challenges.
**Author Build Plan I'm going to make headlines