This year, exports from both South Korea and China have seen remarkable growth. China, in particular, is rapidly shifting from a focus on low-cost consumer goods to a significant increase in exports of advanced products such as semiconductors, artificial intelligence (AI), and electric vehicles. While South Korea celebrates record-high export figures, it is also allowing its key industries to be challenged.
According to industry reports on September 14, South Korea's total exports from January to August increased by 52.8% compared to the same period last year. During this time, exports in the information and communication technology (ICT) sector, which includes semiconductors, reached approximately $367.2 billion, marking a 129% increase. Last month, the growth rate for South Korea's ICT exports was 162.6%, more than double the overall export growth rate of 68.7%.
China also reported a 19.3% increase in total exports in dollar terms from January to August, with exports of high-tech products surging by 42.9%. Both countries are seeing their advanced industry exports drive overall growth.
The export categories that are performing well for both nations are becoming increasingly similar. South Korea's strengths lie in products related to AI infrastructure, such as high-bandwidth memory (HBM), server memory, and solid-state drives (SSD). Meanwhile, China is rapidly increasing its exports of AI and computing-related products, including integrated circuits and automatic data processing devices. From January to August, China's exports of integrated circuits (ICs) rose by 103.9%, while exports of automatic data processing devices and components increased by 49.4%.
This shift in China's export focus from low-cost clothing and household goods to advanced manufacturing is noteworthy. High-tech products accounted for 29% of China's total exports from January to August this year, with integrated circuits, automobiles, and computing equipment making up a significant portion of the export growth.
The competition is not limited to semiconductors. China is intensifying its competition in sectors where South Korea currently excels and where future growth is anticipated, including electric vehicles, batteries, industrial robots, and computing equipment. From January to August, China's automobile exports increased by 53.2%, and integrated circuit exports rose by 103.9%. The growth in exports of high-value machinery, such as industrial robots and 3D printers, is also notable.
A more significant concern is the increasing quality of China's export push. In August, China exported 894,000 passenger cars, a 77.5% increase from the previous year, with electric and plug-in hybrid vehicle exports soaring by 154.7%. This focus on enhancing the competitiveness of electric vehicles over internal combustion engines has intensified competition with South Korean automakers like Hyundai and Kia, as Chinese manufacturers such as BYD and Geely expand their sales into Europe and Southeast Asia.
Experts believe that as South Korea's key export products shift toward high-value advanced goods, China is also restructuring its export framework in the same direction, broadening the competitive landscape to the global market. In particular, in areas such as general-purpose memory, electric vehicles, batteries, and robots, South Korean companies are likely to face increasing pressure from Chinese firms that leverage production scale and price competitiveness.
Jo Eun-kyo, head of the China Industry Analysis Team at the Korea Industrial Research Institute, stated, "The competition between South Korea and China in advanced industries has entered a structural phase that includes industrial ecosystems, supply chains, and markets."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.