A panel engages in debate at a discussion board hosted by the Korea Institute for Industrial Economics and Commerce on methods on China and new avenues of cooperation throughout a turning level for Korean business, held on the El Tower in Seoul’s Yangjae neighborhood on Dec. 16, 2025. (Park Jong-o/Hankyoreh)
Prior to now, inner experiences by Korea’s Ministry of Commerce, Trade and Assets at all times included an estimate of what number of years Korea’s industries have been forward of or behind China by way of expertise. “However now, it’s turn out to be tough to jot down such experiences,” admitted Kim Deok-gu, who oversees the ministry’s division on Northeast Asian commerce. China’s manufacturing and high-tech industries have grown so quickly that the economic panorama has been totally remodeled, he defined.
Kim’s candid feedback got here throughout a discussion board titled “Korea’s Industrial Technique Towards China and New Cooperation Instructions in a Interval of Transition” placed on by the state-run Korea Institute for Industrial Economics and Commerce on the El Tower within the Yangjae neighborhood of Seoul on Tuesday.
The occasion aimed to plan measures for responding to China, which has both caught as much as or surpassed Korea’s competitiveness in lots of industries.
Individuals, together with Kim, expressed shared concern over China’s threatening advances, which have overtaken Korea not solely in conventional heavy industries like metal, petrochemicals, and shipbuilding, but additionally throughout future industries together with autonomous electrical autos, batteries, synthetic intelligence, robotics, and renewable vitality. Individuals harassed the pressing must replace Korea’s industrial technique.
“The Chinese language Communist Celebration is severe about fostering manufacturing, and Korea’s ‘quick follower’ progress mannequin is going through a disaster,” acknowledged Jee Man-soo, a senior analysis fellow on the Korea Institute of Finance, in his keynote presentation. He defined that China, studying from the US’ struggles with political and social instability as a result of job losses after huge manufacturing crops moved overseas, is now aggressively supporting its personal manufacturing sector throughout the board to dominate world industries.
“In new industries and rising markets, China handles improvement, commercialization, mass manufacturing, and gross sales completely by itself, leaving no alternative for international latecomers to catch up,” Jee harassed. Which means in future industries reminiscent of electrical autos, batteries, and renewable vitality, China dominates the whole worth chain, leaving no openings for stragglers like Korea to interrupt in.
Eun Jong-hak, a professor of Chinese language research at Kookmin College, acknowledged, “When China launched [the national industrial policy of] ‘Made in China 2025’ in 2015, it was [experiencing] a interval of heightened nervousness as superior nations just like the US and Germany introduced plans to revitalize their manufacturing sectors.”
“China has caught up with Korea considerably via a decade-long technique of business upgrading and scientific-technological improvement,” Eun famous, calling the state of affairs “reasonably embarrassing.”
Made in China 2025 is a state-led long-term industrial coverage introduced by the Chinese language authorities in 2015, aiming to raise China into a producing powerhouse. It designated 10 strategic industries — together with semiconductors, synthetic intelligence, robotics and electrical autos — as areas for concentrated authorities help.
Hong Chang-pyo, the director of the KOTRA Academy, famous that 2015 was when negotiations for the Korea-China Free Commerce Settlement have been underway. “Again then, a sure Korean electrics firm beginning with the letter ‘S’ spoke of an ‘unbridgeable hole’ with China, asserting that there was ‘completely no drawback,’ and ‘no concern in any respect,’” he mentioned.
Nevertheless, he warned that what makes China formidable is “its skill to construct industrial ecosystems and internalize the worth chain. It’s unclear how lengthy Korea’s semiconductor business can preserve its present place.”
Cho Chuel, an automotive business professional who’s a senior researcher on the Korea Institute for Industrial Economics and Commerce, acknowledged, “Once you hear from home firms like Hyundai Motor about their native subsidiaries in China, they are saying, ‘We do not know compete.’” He added that Hyundai’s Elexio, an electrical car developed in China this yr, can be performing poorly in gross sales.
Rhee Woo-geun, a professor at Sungkyunkwan College, who till just lately served as a professor at Tsinghua College’s Graduate Faculty of Semiconductor Engineering, urged that Korea is at the moment “overly centered” on semiconductors and synthetic intelligence.
“We have to benchmark the US’ Protection Superior Analysis Initiatives Company mannequin to strengthen the essential sciences, simply as IT powerhouses such because the US and China have carried out,” he proposed. DARPA, a analysis company below the US Division of Protection, proactively researches and develops progressive applied sciences for nationwide safety functions and promotes their diffusion into the non-public sector.
Baek Search engine marketing-in, a professor at Hanyang College, urged that whereas it’s vital to acknowledge what China does properly, Korea should additionally “perceive their inner challenges and develop subtle methods.”
Kim Jong-chul, the director basic for worldwide commerce relations on the Ministry of Commerce, Trade and Assets, argued that “neglecting to look at China[’s developments] over the previous 5 years” was what has led to this present state of affairs.
“For some time, some even mentioned experiences on China-related enterprise shouldn’t be made to firm chairmen and CEOs [due to reduced business and exchanges with China],” he mentioned. “We should reactivate these discussions.”
By Park Jong-o, workers reporter
Please direct questions or feedback to [english@hani.co.kr]
