Tuesday, January 28th, 2014
SEOUL, KOREA - Korea's reliance on the Chinese economy for its exports is rising to an excessive level. Economists advised that it's always prudent not to put all eggs in one basket although Korean exporters must work harder to expand their sales activities in China further.
According to the Ministry of Trade, Industry, and Energy on January 27, the share of Korean exports to China in total last year was 26.1 percent, or US$146.1 billion out of $559.7 billion. The share broke the 20-percent threshold for the first time in 2005 at 21.8 percent, followed by 25.1 percent in 2010. The share dipped slightly to 24.2 percent and 24.5 percent in 2011 and 2012 before rising again in 2013.
Last year's exports to China were largely led by items such as mobile phone parts, semiconductors, automotive parts, and automobiles. The surplus from trade with China was $60.6 billion, much higher than the total trade surplus of $44.2 billion. Given the Chinese government's policy toward "qualitative" growth rather than quantitative one and the forecast that the Chinese economy will see its growth pace slow down, it is hard to expect Korea's exports to China and a large trade surplus will continue for a long time.