Analysis of Global Competition Trends in Top 10 Export Items
An analysis has emerged indicating that export competition in advanced high value-added sectors such as semiconductors, automobiles, ships, and medical devices is intensifying in the global market.
On the 12th, KOTRA released a report titled 'Analysis of Global Competition Trends in the Top 10 Export Items,' which analyzed import and export data from various countries over the past five years. The country facing the fiercest competition with South Korea in both domestic and overseas markets was Japan, followed by Germany, the United States, and China.
The report analyzed export competition trends by country and item based on each country's export market share and the Export Similarity Index. The closer the Export Similarity Index is to 100, the more similar the export structures of the two countries are, indicating intense export competition.
As of the third quarter of this year, South Korea recorded the highest export growth rate (9.5%) among the top 10 exporting countries. It rose two ranks compared to the previous year, reaching 6th place in export value.
South Korea's Major Export Competitors: Japan, Germany, United States, China
Export amounts to the top 10 export countries and export competition with Korea from 2019 to the third quarter of this year. Provided by KOTRA
Analyzing export similarity with major countries from 2019 to the third quarter of this year, among the top 30 exporting countries, Japan (46.8), Singapore (40.1), Germany (39.8), the United States (39.1), and China (38.5) ranked as the countries with the most intense competition with South Korea. Japan, Germany, the United States, and China, along with the Netherlands, are among the top five in export value.
Comparing South Korea's export structure with major countries, among the top 10 export main items, Japan overlapped in 9 items, while Germany, Japan, and China overlapped in 7 items.
Japan and Germany had a high export share in automobiles, parts, and machinery. The United States exported mostly petroleum products, chemical industry products, and machinery, while China had a high export share in machinery, electrical and electronics, steel, and automobiles and parts.
The sectors with intense export competition were classified as advanced industries, including semiconductors, automobiles and parts, ships, and medical, precision, and optical instruments.
Looking at the trends in export similarity with the top 10 exporting countries by item, South Korea's export similarity increased with 8 countries in semiconductors and medical, precision, and optical instruments, and with 7 countries in automobiles and parts. In the ship sector, export similarity increased with 4 countries: China, Japan, the Netherlands, and India. The increase in export similarity between South Korea and China, and South Korea and Japan was largest in the ship sector among the top 10 items.
South Korea's top 10 export main items as of the third quarter of this year, ranked by export value, are ▲semiconductors ▲automobiles and parts ▲machinery ▲electrical and electronics ▲chemical industry ▲petroleum products ▲steel and non-ferrous metals ▲plastics ▲ships ▲medical, precision, and optical instruments.
Export similarity in manufacturing sectors such as machinery, electrical and electronics, and plastics and rubber generally declined. In steel and non-ferrous metals, export similarity between South Korea and China increased due to oversupply of steel from China. In chemical industry products, competition intensified with China and France, and in petroleum products, competition with India became fiercer.
Export Similarity Declines with Major Countries Except China and Mexico... "Competition Concentrated in Advanced Industries"
Export competition among Japan, Germany, the United States, and China by major items in the third quarter of this year. Provided by KOTRA
Export similarity with major countries such as Japan and the United States, excluding China and Mexico, generally declined. However, this is not because the level of export competition with these countries has eased, but rather because competition is concentrating in some core industries like semiconductors and automobiles and parts, and manufacturing production bases are dispersing to Mexico and Southeast Asia. During the same period, export similarity between South Korea and Mexico increased the most among the 10 countries.
Lee Ji-hyung, Head of KOTRA's Economic and Trade Cooperation Headquarters, said, "Major export powers such as the United States and China are actively supporting and regulating to foster advanced industries. We will promptly disseminate information on major countries' trends and trade regulations to enhance our companies' responsiveness and carry out multifaceted support projects such as supply chain diversification, expanding business partners, and technological cooperation."
This report is available for free as a PDF file on the KOTRA Trade Data Room website and KOTRA Overseas Market News.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
