Korea-China FTA Likely to Devastate Korean Heavy Electric Machine Industry
Korea-China FTA Likely to Devastate Korean Heavy Electric Machine Industry
  • Korea IT Times (info@koreaittimes.com)
  • 승인 2013.07.23 16:51
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Seoul, Korea - When Korea-China FTA is executed, massive amount of Chinese heavy electric machinery will be imported to Korea, Korean heavy electric machinery industry will be obliviated, the quality of electricity distribution will be degraded, and the risk of power outage will grow larger. 
According to the industry on the 22nd, the total import of heavy electric machinery from China reached 6.5 billion USD, equivalent to 50.3% of the total import, while export of Korean heavy electric machinery to China was 4.2 billion USD. The trade deficit in heavy electric machinery has already reached 2.3 billion USD, which is whopping seven times greater than that of 2009. 
When and if the FTA is executed with China, the Chinese products are expected to flood Korean market with 30% cheaper price tags. Considering that Korean competitors will not have price-competitiveness against Chinese products, they are crying out loud that the removal of import tariff by Korea-China FTA will open wide the door to Korean market for the Chinese companies, with no one standing in their way. 
The makers of mid-to-low voltage machinery of 1㎸ and lower will be the first to feel the heat. Most of the mid-to-low voltage machinery are produced by mid-to-small businesses, and their low technological requirements had been driving their makers into price competition, rather than technological competition. 
The major Korean heavy electric machinery makers had been trying to expand their business scope into China by building production facilities or acquiring companies in China since early 2000's, but their efforts failed to produce a meaningful result. The Korean mid-to-small companies also went to China to reduce the production cost, but they are withdrawing from China as Chinese government strengthened regulation on employment and investment. 
Some claim that the quality of electricity will be lowered when the Chinese heavy electric machinery are installed in Korean power grid, because of poor after-sales service. Since most of the Chinese heavy electric machinery will be imported by a distributor, the Korean market will not be able to expect proper maintenance service, the trade insiders claim. 
Korea-China FTA Likely to Devastate Korean Heavy Electric Machine Industry When Korea-China FTA is executed, massive amount of Chinese heavy electric machinery will be imported to Korea, Korean heavy electric machinery industry will be obliviated, the quality of electricity distribution will be degraded, and the risk of power outage will grow larger. 
According to the industry on the 22nd, the total import of heavy electric machinery from China reached 6.5 billion USD, equivalent to 50.3% of the total import, while export of Korean heavy electric machinery to China was 4.2 billion USD. The trade deficit in heavy electric machinery has already reached 2.3 billion USD, which is whopping seven times greater than that of 2009. 
When and if the FTA is executed with China, the Chinese products are expected to flood Korean market with 30% cheaper price tags. Considering that Korean competitors will not have price-competitiveness against Chinese products, they are crying out loud that the removal of import tariff by Korea-China FTA will open wide the door to Korean market for the Chinese companies, with no one standing in their way. 
The makers of mid-to-low voltage machinery of 1㎸ and lower will be the first to feel the heat. Most of the mid-to-low voltage machinery are produced by mid-to-small businesses, and their low technological requirements had been driving their makers into price competition, rather than technological competition. 
The major Korean heavy electric machinery makers had been trying to expand their business scope into China by building production facilities or acquiring companies in China since early 2000's, but their efforts failed to produce a meaningful result. The Korean mid-to-small companies also went to China to reduce the production cost, but they are withdrawing from China as Chinese government strengthened regulation on employment and investment. 
Some claim that the quality of electricity will be lowered when the Chinese heavy electric machinery are installed in Korean power grid, because of poor after-sales service. Since most of the Chinese heavy electric machinery will be imported by a distributor, the Korean market will not be able to expect proper maintenance service, the trade insiders claim. 

한·중FTA로 중전기기 `풍전등화` 

한·중FTA가 체결되면 관세 철폐로 중국산 중전기기가 대거 유입돼 국내 중전기기 산업 기반이 붕괴되고 전력망 부실에 따른 정전 위험도 커질 것이라는 지적이다. 
22일 업계에 따르면 지난해 중국산 중전기기 수입은 전체 수입액의 50.3%인 65억1200만달러, 수출은 31.1%인 42억6800만달러를 기록했다. 적자 규모가 22억4400만달러다. 2009년에 비해 무려 일곱 배 가까이 늘어난 수치다. 
중국과 FTA가 체결되면 국산 제품보다 30% 가까이 저렴한 중국산 제품이 들어 온다. 중국산 제품에 비해 가격 경쟁력을 갖추지 못한 상황에서 무관세로 수입되는 중국산 중전기기를 당해낼 재간이 없다고 업계는 주장한다. 당장 위기를 맞는 것은 1㎸ 이하 중저압기기 분야다. 중저압기기는 기술보다는 가격 위주 제품으로 대부분 중소기업이 생산한다. 
국내 중전기기 대기업은 2000년대부터 중국 내 공장 설립 및 인수 등 현지화를 추진했지만 성과는 저조한 편이다. 중소기업도 원가절감을 위해 중국에 진출했지만 중국이 최근 신노동계약법에 의한 임금인상, 3~6% R&D 투자, 10% 이상 R&D 인력고용 등을 이유로 철수하고 있다. 
중국산 중전기기가 국내 전력망에 설치되면 AS 미비로 전력품질이 떨어질 수 있다는 주장도 있다. 중국산 중전기기는 대부분 총판 형태로 제품만 들여와 사실상 AS가 불가능하다는 게 업계 설명이다. 
유창선기자 yuda@etnews.com 

표/중전기기산업 대 중국 수출입 실적 (단위:백만달러, %) 
출처 : 한국무역협회, 한국전기산업진흥회

**Article provided by etnews [Korea IT News]

[Reference] : http://english.etnews.com/markettrends/2802976_1278.html


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