Catch 22
The Hyundai Research Institute said on March 8 that the Chinese manufacturing industry is evolving so fast that it threatens the position of the Korean manufacturing sector in the global arena.
According to a recent report, Korea recorded 106.9 points in 2013 in its export advancement index for evaluating the technological level and added-value productivity of major export items of countries. The United States recorded 103.0, Japan 111.7, and Germany 108.5. Back in 2000, Korea’s score had been 94.3, whereas the other three had placed at 100.8, 103.4, and 104.8 each.
Korea’s IT sector accounted for no less than 26.7 percent of the index. By industry segment, precision machinery such as flat display panel manufacturing recorded 100.4, and semiconductor and electronics product manufacturing recorded 107.0. The chemical product index was 96.5, short of those of advanced economies. China marked 91.7 in this category. In the steel sector, China (104.5) was nipping at the heels of Korea (108.6), Japan (107.1), and the U.S. (109.2).
“In many fields except for the IT sector, Korea is competing fiercely with or lagging behind the global leaders,” the institute explained, adding, “Besides, China is emerging rapidly to aggravate Korea’s catch-22 situation.”