The share of the public exports of the Korean semiconductor industry has increased by nearly 13 times in the past 20 years. In particular, as of 2021, the industry, which has the highest deprivation of exports, was surveyed in the order of ‘precision device’, ‘precision chemistry’ and ‘semiconductor’. This is pointed out that the share of public exports in Korea is expanding from labor-intensive industries such as wood, leather, and shoes to high-tech intensive areas such as precision equipment and semiconductor, and comprehensive measures such as slowing the economic slowdown in China and pursuit of technology are required.

The Korea Chamber of Commerce and Industry announced on the 21st of the Korea-China diplomatic relations on the 21st, ‘Changes in Export dependence and implications report by industry.’

According to the report, as of last year, industries with high exports to China were ‘precision devices’ (42.5%),’ precision chemistry ‘(40.9%),’ semiconductor ‘(39.7%),’ glass’ (39.3%), ‘petrochemical ‘(38.9%) was counted. This is a significantly different ranking from ‘wood’ (42.3%), ‘leather and shoes’ (38.8%), ‘petrochemical’ (33.4%), and ‘other electronic components’ (27.2%).

The Korean Commerce said, The dependence on the export of consumer goods is relatively reduced, while the export of the technology-intensive industry has increased significantly.

In the last 20 years, the industry has increased the largest share of public exports. In 2000, the proportion of public exports in the semiconductor industry was 3.2%, but by 39.7%in 2021, it increased by 36.5%p and about 13 times. Next, ‘precision equipment’ (7.5%→ 42.5%, 35%p ↑), ‘display’ (2%→ 35.2%, 33.2%p ↑), ‘ceramic’ (5.6%→ 32.3%, 26.7%p ↑ ) ‘Communication equipment’ (1.5%→ 27.9%, 26.4%p ↑).

The Korea Award said, In contrast, the increase in the domestic high value-added industry is likely to be hit when the technology gap with China is narrowed. We have to do our best.

The consultation added, The senior technology industry, which is directly related to economic security, is much more sensitive to external risks, he added.

According to the report, since diplomatic relations, public trade has soared and has been the driving force for Korean economic growth. In 2000, eight years after diplomatic relations, Korea’s exports amounted to $ 18.5 billion, only 10.7%of the total exports, but in 2021, it increased by 9 times to $ 162.9 billion, accounting for 25.3%of the total exports.

In the same period, Korea’s exports increased 3.7 times ($ 172.3 billion → $ 644.4 billion). China has maintained its number one in 2003 since it surpassed the United States, Korea’s largest exporter.

Korea’s public imports amounted to $ 12.8 billion in 2000, which was 8%, but in 2021, it increased to $ 138.6 billion, which is 22.5%, or more than 10 times. On the other hand, Korea’s imports increased 3.8 times from $ 160.5 billion to $ 615.1 billion.

However, in recent years, the size of public trade is growing, while trade balance is deteriorating. In response, the report analyzed that the mass imports in the fields of raw materials and intermediate goods have risen sharply, while China’s exports have been relatively low as China’s economic growth rate due to zero corona policy leads to a decrease in demand.

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The report also paid attention to changes in direct investment. In 2000, direct investment in China was only $ 800 million, but in 2021, it increased to $ 6.7 billion. The cumulative amount is about $ 81.6 billion. According to the report, Korea’s direct investment in Korea is 2.5 ~ 3%, which is not large, but it is the largest in pure foreign investment except Chinese capital.

The most different point was analyzed for investment purposes. More than half of the public’s direct investment in 2000 was ‘export promotion (51%)’. However, in 2021, the number of investments made to enter the local market was the highest at 67%, revealing that Korean companies’ view of China turned from production position to demand market.

Woo Tae-hee, vice chairman of the Korean Sangsang, said, After the diplomatic relations between Korea and China, the two economies have had various twists and turns, but they have made a rapid development in mutual reciprocity relationships. Is bigger than ever.

Vice Chairman Woo stressed, It is time for comprehensive measures to solve triplets, such as the possibility of a slowdown in China, China’s technology pursuit, and intensifying the US-China hegemony.