Monday, September 16th, 2013
SEOUL, KOREA- A study said Korea's exports would decline by 1.3 percent for every 1 percent drop in the Chinese economy's growth rate. In particular, the impact will be more severe in some sectors such as display panels and automobiles, experiencing a 5.3-percent and 3.0-percent cut respectively.According to a report published by the state-run Korea Institute for Industrial Economics and Trade on September 13, the Chinese economy is forecast to continue its growth pace of 7 percent per annum for the time being, but there remain risks for it to fall below the 6-percent level in the process of the economy going through restructuring.
Of the industrial sectors to be adversely affected by the Chinese economy losing steam, display panels were most vulnerable as Korea's flat-panel makers rely heavily on exports to China. This was followed by automobiles (-3.02%), auto parts (-2.27%), shipbuilding (-1.78%), mobile devices (-1.68%), and steel (-1.56%).
During the first half, Korean goods accounted for 9.7 percent of all Chinese imports. The share of goods shipped to Chinese in total Korean exports was 25.1 percent (30% if Hong Kong is included) in the same period.
