The damage South Korea received due to the rise of China's economy is smaller compared to Germany and Japan ―. A South Korean newspaper reported that such a result was revealed in an analysis by the Bank of Korea (the central bank). As a reason for South Korea's strong performance, experts stated the view that 'Korean products, along with Chinese products, are partially replacing existing German and Japanese products.'

The Hankyoreh newspaper introduced a report titled 'Assessment of Competition among Major Countries in Non-IT (Information Technology) Exports' published by the Bank of Korea at the end of May. According to the report, South Korea's share in the global market for heavy and chemical industry products, excluding IT, increased slightly from 3.9% in 2019 to 4.0% in 2024. During the same period, Germany's share decreased by 1.3 percentage points from 12.4% to 11.1%, and Japan's share decreased by 1.3 percentage points from 6.9% to 5.6%. China's share increased from 11.0% to 14.6% during the same period.

This analysis targeted 2,311 items based on the 6-digit HS code (Harmonized System code for import/export statistical items) from the heavy and chemical industry products (according to Korea Customs Service classification standards), excluding electrical and electronic products, and including chemical industry products, steel products, machinery, transportation equipment, and other sectors.

By sector, China's share increased in all sectors, including chemical industry products, steel products, machinery, and transportation equipment, while Germany's and Japan's shares decreased. It was found that South Korea's share slightly decreased in steel products and machinery, but increased in transportation equipment and other sectors.

Lee Taek-min, head of the International Trade Team at the Bank of Korea's Research Department, who authored the report, commented, 'As China increased its overall share in the global market due to improved technological capabilities and expanded production capacity, the shares of major manufacturing countries like Japan and Germany decreased.' Regarding South Korea's relatively strong performance, he explained, 'This suggests that technological levels among major countries are gradually equalizing upwards, intensifying competition in the global market.'

Looking at it by item, items where China increased its share also showed a similar tendency for Korean products to increase their share. Comparing the relationship between China's share and South Korea's share in the global market based on export value for all 2,311 items analyzed from 2019 to 2024, the proportion of items where South Korea also increased its share among those where China increased its share was 60.8%. Germany's was only 23.6%, and Japan's was 20.4%.

Manager Lee explained, 'Items where South Korea expanded its share tended to see a decrease in Germany's and Japan's shares,' adding, 'This suggests that Korean products, along with Chinese products, are partially replacing existing German and Japanese products.'

According to the results of an analysis that classified each item into four categories based on the Product Complexity Index (PCI), South Korea's export growth rate for 'high-end' items from 2020 to 2024 was an annual average of 6.8%. This was higher than 'low-end' at 3.3%, 'mid-low-end' at 3.0%, and 'mid-high-end' items at 2.1%. The growth rate for South Korea's high-end items was also higher than the global average growth rate of 6.0%. (Edited by Hinata)