Korea's export competitiveness enhances auto parts innovation

According to the Yonhap News Agency reported on March 17, 2014, the latest information released by the Korea Trade Association on the 17th showed that in 2013 Korea and Japan’s export competitiveness reached 0.501, the highest in history. The two sides are particularly fiercely competitive in terms of auto parts , machinery, and home appliances that export leading products in South Korea.

It is reported that export competitiveness means that in foreign markets, the proportion of products competing with other countries in the total export value, the closer to 1 shows that the competition is fiercer. A breakthrough of 0.5 in the export competitiveness of South Korea and Japan shows that the degree of similarity in export commodities is more than 50%.

According to statistics, although Japan’s competitiveness in many industries has declined, it is still Korea’s biggest opponent in terms of exports. Although the export competitiveness of South Korea and Japan declined in 2006-2008, it rebounded from 2009 and continued to rise. Of the seven export products in Korea, the export competitiveness of auto parts reached the highest historical value, which was 0.56. The export competitiveness of auto parts has been prominent in major export commodities since 2007.

With the shift from quantity to quality in South Korea's export commodities, it has significantly improved its competitiveness in the world market. South Korean industry analysts have analyzed that if South Korea cannot catch up with Japan as quickly as possible, it will be difficult to maintain the current favorable export situation.

In addition to auto parts, South Korea's main export products such as semiconductor equipment, automobiles, industrial machinery, iron and steel, semiconductors, and plastics also compete with Japan.

In this regard, the Korea Research Institute of Industrial Research stated that although the yen was lower in 2013, many Japanese companies have used this to lower the price of the product, resulting in a significant improvement in income. This will lead to a sustained increase in the competitiveness of South Korea and Japan.

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