South Korean economy: China sales in 2020, down 21%: comparison with Japan
-Korea’s bifurcated diplomacy is “ineffective”-
South Korean sales plummet in China:
Last year, Korean companies’ sales in China decreased by 21% compared to 2016.
On the other hand, Japanese companies’ sales in China fell by only 1%.
The Korean business community is in a hurry with this result.
The biggest reason:
Japan is in conflict with China in terms of security, but has not been affected by economic relations.
This is due to the superiority of Japanese products in terms of quality.
South Korea is being chased by China and is losing its competitiveness.
South Korea must be aware of this fact.
“JoongAng Ilbo” (September 6th):
The business performance of a Korean company doing business in China has ignited a bright red fire.
Sales, profit margin, and market share all fell in five years.
The Federation of Korean Industries (Federation of Korean Industries):
On September 5, “Analysis of the performance of 30 large companies that announced their sales in China over the past five years” was announced.
As a result, the sales of 30 Korean companies in China
In 2020, 117,100 billion won,
2016, 125.8 trillion won,
Compared to 5 years ago, it decreased by 6.9%.
Of the overseas sales of 30 companies last year, China’s occupancy ratio fell to 22.1%.
It fell 3.5 points from 25.6% in 2016.
Memory exports plummeted:
In particular, memory exports plummeted, reducing South Korea’s sales in China.
The amount of Korean memory exported to China is
It fell to $ 28.37 billion last year.
It is a decrease of 29.1% in two years.
From 2018, “Demand for Korean-made memory by Chinese companies such as Huawei has decreased.”
Comparative analysis with Japan:
The poor performance of Korean companies is even more pronounced.
The analysis was conducted by the Federation of Korean Industries, the Export-Import Bank, and the materials of the Ministry of Economy, Trade and Industry of Japan.
2016
Korean company China sales 225 trillion won ($ 187 billion)
Japanese company China sales 490 trillion won (47.6 trillion yen)
2019
Korean company China sales 171 trillion won ($ 147.5 billion)
Japanese company China sales 502 trillion won (47.1 trillion yen)
The gap with Japan has widened further.
Chinese market share of automobiles:
Korea-made share
It decreased from 7.7% in 2016 to 4.0% from January to September 2020.
Share made in Japan
It increased from 15.1% to 22.3%.
Chinese market share of cosmetics:
Korea-made share
It decreased by 8.1 points from 27.0% in 2016 to 18.9% in 2020.
Share made in Japan
It increased by 8 points from 16.8% to 24.8%.
Korean smartphone market share in China:
In 2016, it recorded a 4.9% share of the Chinese market.
Since 2019, it has been stuck in the 0% range.
Korea’s technological competitiveness declines:
The technological capabilities of Korean companies and those of China are close.
This is the reason why Chinese products are taking a share.
Huawei, Xiaomi, etc.
Due to the wavy offensive of Chinese companies
Korean smartphones have completely lost their presence.
World view of Toshiyoshi Katsumata
http://hisayoshi-katsumata-worldview.com/archives/27351128.html
Chinese business, South Korean sales down 21%
The business performance of a Korean company doing business in China has ignited a bright red fire.
Over the last five years, sales, profit margins, and market share have all fallen.
Joongang Ilbo |
https://s.japanese.joins.com/JArticle/282617?sectcode=300&servcode=300