[THE INVESTOR] China’s slowing economic growth has given Korean products’ global market share room to grow, LG Economic Research Institute said in a report on June 21.
According to the report, China’s slowing growth rate has curbed the rate at which Chinese products have taken up global market share, and damaged their price competitiveness.
The LGERI report said that China’s rising labor and land costs coupled with falling raw materials costs brought on by slowing domestic consumption has narrowed the price gap between Korean and Chinese products.
Aided by the closing price gap, Korean products have begun to make advances in Asian markets as well as the US and other western markets, the report said.
“(Korean) firms’ profitability has risen slightly due to improvements in trade conditions brought on by the slowdown in China’s advances,” LGERI researcher Lee Geun-tae said.
“Rising production costs in China will be an opportunity to regain ground even for those industries that have already lost their market share.”
By Choi He-suk (
cheesuk@heraldcorp.com)
