Korea’s Export Will Recover from First Half of This Year
- 85% of respondents hope to expand imports
of Korean products this year -
- Challenge to secure price and quality
competitiveness to Chinese products -
the recent sluggish exports, it is appeared that overseas buyers see the high
possibility of Korea’s export recovery.
to a report titled “Overseas Buyers’ View on Korea’s Export Competitiveness and Recovery
Time” issued by the Institute for International Trade
(President, Shin Seung-kwan) of the Korea International Trade Association, the
survey of overseas buyers (563 companies) showed that 56.1 percent (17.6% in
the first half of 2017, 38.5% in the second half of this year) of the respondents
forecasted that the world’s import demands would recover in this year. The
participants also evaluated that Korean products’ export competitiveness as
well as brand image have been improved.
percent of the buyers (45.8% in the first half of 2017, 39.2% in the second
half of 2017) raised expectations to overcome Korea’s sluggish exports by
responding that they have plans to expand the imports of Korean products this
year. By region, it is probable that Korea’s exports will expand mainly in the
Oceania, Africa, the Middle East and Europe markets.
survey, 39.8 percent of the respondents said the competitiveness of Korean
products has been improved compared to the past. Particularly, consumer goods,
machinery, and textiles led the improvement of competitiveness. In addition,
67.5 percent of participants responded that brand image of Korean products is
better than in the past. They evaluated that the product image of machinery,
consumer goods, transport equipment and medical devices has been improved.
other hand, the biggest rival country of Korean products is China (47.6%),
followed by Europe (17.6%) and the United States (8.7%). By market, the
competition is severe between Korea and China in the Middle East, Latin America
and Asia. Also, the two countries are competing in transport equipment,
electronic devices and steel products. When it comes to competition against
China, many respondents (31.8%) pointed out Korean products’ high price as the
biggest issue. Korea’s price competitiveness is particularly weak in electric
devices, machinery and consumer goods.
Nae-young, a researcher at IIT said “It is expected to see Korea’s export recovery from the first half of
this year. However, if the trade tensions, such as import regulations, are
intensified due to the spread of protectionism, it could be an obstacle for
Korea to recover its exports.” The researcher stressed “In terms of product quality, the competition between Korea and China
is becoming more severe. Therefore, Korean export companies need to continue to
exert efforts to strengthen the overall product competitiveness, including
quality and brand, and enhance high value-added industries.”