Korea is Losing its Competitive Advantage

The International Trade Research Institute has found the scale of Chinese general machinery imports from South Korea was $ 8.8 billion, a decrease of 4.5% and decline for a third consecutive year. The export scale of South Korean general machinery has been greatly reduced due to the downturn in China’s domestic economy.The growth inventory in Chinese factory’s and other internal factors also influence on the imports.

South Korea’s export decline is also due to its falling competitive advantage. South Korea improve should promote SMEs to help develop a stronger competitive advantage and use the South Korean Free Trade Agreement to further explore the Chinese market