Chinese-made 'Inventory Tsunami' is Coming [3-Minute Brief]

[3-Min Brief 3-Second Summary]
① China exports overproduced products at low prices
② Only expensive smartphones sell well in the Korean market
③ Korea's exports led by cars, not semiconductors

MARKET INDEX

- US New York stock market's three major indices closed higher as the benchmark interest rate was held steady
- The Federal Reserve (Fed) hinted at the possibility of three rate cuts next year
- Domestic financial sector's real estate PF delinquency rate remains high

TOP 3 NEWS

■ China exports inventory at rock-bottom prices...Concerns over trade friction due to low-price competition

- Chinese companies turn to overseas markets as domestic consumption declines
- Lower export unit prices as they dispose of overproduced inventory
- Concerns over global trade friction due to flood of low-priced Chinese goods

■ ADB raises South Korea's inflation forecast for next year from 2.2% to 2.5%

- Asian Development Bank (ADB) raises inflation outlook for next year
- Economic growth rate remains the same but core inflation remains strong
- Global energy and food prices also contribute to inflation rise

■ South Korea-Netherlands semiconductor alliance joint statement... 'Immediate response' in case of supply chain crisis

- The term 'semiconductor alliance' is effectively used for the first time by both governments
- "Countries sharing the same values and ideology"... signifies immediate support
- Close corporate relations... Strengthening Samsung-ASML partnership

Graphic News: Only high-end phones are selling well

- Domestic smartphone market shipments fell 5.4% in Q3
- Market share of smartphones priced over 1 million KRW is increasing
- 7 out of 10 domestic phones are premium smartphones

the List

- Electrification trend booming in China and others, South Korea also participating
- Auto and parts exports reached 77.2 billion USD from January to October
- Auto trade balance expected to reclaim top spot after 10 years

Profitable Law

■ Bill to abolish 'employment and qualification restrictions' upon bankruptcy declaration... stalled for over 2 years since submission to the National Assembly

- Various employment and qualification restrictions imposed upon bankruptcy declaration due to unpaid debts
- "Abolishing discrimination aligns with the bankruptcy system's purpose to help a fresh start"
- Representative bill by Assemblyman Park Jumin... stalled for over 2 years
☞Read article: https://www.asiae.co.kr/article/lawtimes/2023121323454891280

■ Korea International Intellectual Property Protection Association holds seminar on 'Patent Strategies for Bio and Pharmaceutical Industries'

- Over 150 experts including IP officers from domestic bio and pharmaceutical companies attended
- Shared latest information on biosimilar industry trends and patent strategies
- "Bio and pharmaceutical industries must establish strategies beyond mere survival"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2023121323560694902

■ Indonesia's new health law, notable amendments

- Indonesia officially enacts Article 17 of the Health Law (new health law)
- Authority to issue medical licenses transferred from Medical Association to Ministry of Health
- Foreign doctors now allowed to practice medicine in Indonesia
☞Read article: https://www.asiae.co.kr/article/lawtimes/2023121400050297366

※ 'Profitable Law', a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Term in the News: South Korea trapped in 'Shrinkonomics'

- A term combining 'shrink' and 'economics', meaning 'shrinking economy'
- Phenomenon of decline in working-age population (ages 15-64) and contraction in production, consumption, and other economic sectors
- First appeared in an IMF report... low birthrate and aging population identified as main causes

Today's Key Schedule

○ Domestic KOSDAQ DS Danseok subscription, expected public offering price 79,000~89,000 KRW; KOSDAQ Hana 30th SPAC subscription, public offering price 2,000 KRW

○Overseas
- 04:00 US Federal Open Market Committee economic outlook
- 04:00 US interest rate decision
- 04:30 US FOMC press conference
- 18:00 US International Energy Agency (IEA) monthly report
- 21:00 UK interest rate decision (December)
- 22:15 Eurozone interest rate decision (December)
- 22:30 US export/import price index (YoY)

◇Lunch & Commute Weather

○ Lowest temperature 7℃(▲5℃) ｜Highest temperature: 10℃(▼2℃)
○ Precipitation probability: 60% in the morning｜70% in the afternoon
○ Fine dust: Good in the morning｜Good in the afternoon

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.