South Korea’s semiconductor industry saw the biggest export growth to China over the past two decades.
The research by the Korea Chamber of Commerce and Industry (KCCI) showed that semiconductors took up only 3.2 percent of South Korea’s total exports to China in 2000 but jumped 12.4 times to 39.7 percent 20 years later.
Precision machinery was South Korea’s top export sector to China at 42.5 percent, followed by fine chemistry at 40.9 percent, semiconductors at 39.7 percent, glass at 39.3 percent, and petrochemicals at 38.9 percent.
In 2000, the sectors were timber at 42.3 percent, leather and shoes at 38.8 percent, petrochemicals at 33.4 percent, and electronic parts at 27.2 percent.
The KCCI conducted the research to mark the 30th anniversary of the establishment of diplomatic ties with China in 1992, according to the South Korean News Agency (Yonhap).
“High technology sectors, which are directly related to economic security, are very sensitive to external risk factors,” the KCCI warned.
“The government should come up with plans to prevent China from weaponizing South Korea’s dependence on China for exports through continued multi-sourcing policies.”
In 2003, China surpassed the United States to become South Korea’s biggest export destination and has been in the top spot since.
In 2000, South Korea’s exports to China were US$18.5 billion, 10.7 percent of the total exports of that year. But the figure soared to $162.9 billion last year, accounting for 25.3 percent of the total.
