Korean shipbuilding could fall behind China within five years: survey
$YZJ Shipbldg SGD (BS6.SG)$
2025.11.18 10:12:06
China is expected to overtake South Korea in all of the nation’s top 10 export industries by 2030, signaling growing concern that the so-called “China phobia” among Korean manufacturers is becoming reality.
According to a survey released Monday by the Federation of Korean Industries (FKI), conducted among 1,000 of Korea’s top exporting companies with 200 firms responding, Chinese companies have already surpassed Korean firms in five key sectors — steel (112.7), general machinery (108.5), secondary batteries (108.4), displays (106.4), and automobiles and parts (102.4) — when Korea’s current competitiveness is benchmarked at 100.
This means domestic firms now believe that China has gained an edge not only in electric vehicle batteries but also in automobiles, areas where Korea previously held an advantage. Meanwhile, semiconductors (99.3), electrical and electronic products (99.0), shipbuilding (96.7), petrochemicals and petroleum products (96.5), and biohealth (89.2) still maintain a slight lead over Chinese competitors — but are all projected to be overtaken within the next five years.
The competitiveness gap is expected to widen further in sectors where China is already dominant, including secondary batteries, steel, and automotive parts.
The survey also found that 62.5 percent of Korean exporters view China as their biggest rival in global markets today, while 68.5 percent expect China to remain their primary competitor in 2030.
“The survey suggests that even in product branding, Korean companies may lose ground to Chinese firms within the next five years,” the FKI said. “Weakening product competitiveness and rising external risks were cited as major obstacles to improving Korea’s export strength.”
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