South Korean exports of goods to China have been severely frustrated 50% in auto parts exports

According to trade statistics released by the Korea Trade Association and the Customs Agency, exports of Korean products to China grew by 28.7% year-on-year in February this year, and the year-on-year growth rate has declined significantly since March. In particular, from January to July this year, the cumulative increase in China's imports of foreign products was 18.2%, and South Korea’s export growth to China was only maintained at 8.6%.

Four countries, including South Korea, Japan, the United States, and Germany, have always been Top4 in the Chinese import market. The export growth of these four countries to China in February this year was 25.3% in South Korea, 39% in Japan, 32.4% in the United States, and 28.8% in Germany. However, in the period from March to July of this year, the remaining three countries’ exports to China maintained a double-digit growth year-on-year, while South Korea fell to a (lowest) 4.3%.

Judging from the classification of Korean goods exported to China, the export of goods such as electronic parts, steel, and auto parts to China has been reduced to half of its original size. Exports of Korean auto parts to China fell from US$320 million in March this year to US$1.5 in July. The export of batteries and accumulators to China fell from 370 million U.S. dollars in January this year to 230 million U.S. dollars in July. The generator fell from 16.92 million U.S. dollars in January to 7.23 million U.S. dollars in July.

The Minister of Industry, Trade and Industry of South Korea, Douglas Kobayashi, said that considering the relations between China and South Korea in a comprehensive manner, he is considering to communicate with the Chinese side in a more prudent manner and eventually solve the problem properly.