Korea's IT industry is feeling the effects of China’s economic slowdown, with Korean exports of IT and electronics goods to China seeing a sharp drop in growth last year, media reported Thursday, citing a report by the Korea International Trade Association.
IT pundits say China, which is the top market for Korean products, is now trying to use more domestic products and technologies.
Korean tech exports to the world’s second-largest economy grew just 1.4 percent year-on-year to US$103.7 billion last year, after posting 15.8 percent in 2013. The association’s report came from its Shanghai branch, with one official being quoted as saying, "Including IT and electronics, China's overall consumption of domestic goods is rapidly expanding."
Korean companies are advised to use their technological advantage despite China’s push to use domestically made products, given that China remains behind in core technologies, the official said.
The report added that IT and electronics trade in China dipped 0.5 percent to US$1.32 trillion last year, the first yearly drop since 2009.
Among the losers in IT exports to China were handset parts (down 8.5 percent), LCD panels (11.7 percent) and semiconductor integrated circuits (5.9 percent).
By D. Peter Kim
