China's dominance threatening Korea's traditional powerhousesUpdated: 2014-08-01 21:59:06 (KST)
China is increasingly taking bigger bites out of Korea's pie.
Chinese smartphone makers are starting to encroach on Samsung Electronics' territory.
Although Samsung remained number one in global market share in the first half of the year at 23 percent, China's Xiamoi was a close second at 21 percent.
The Chinese smartphone makers are gaining ground, as their skills catch up with their attractive pricing.
It's a similar story for Korea's petrochemical and steel companies.
The operating profits of Korea-based steelmaker Posco in the second quarter stood at 547.6-million U.S. dollars, down from 681-million dollars on-year.
At the same time, the rate of steel imports used in the domestic market has sharply increased.
The proportion of steel imports stood at 40 percent from January to May this year, up more than 11 percentage points compared to the same period last year.
More than half of those imports came from China.
"The business life cycle, when looking at the Korean steel industry, is in its maturing stages. It will be difficult to compete with competitors from China in terms of price competitiveness. Korean industries need to seek out new fields in order to survive in the global market."
An official from the Korea Trade-Investment Promotion Agency told the Seoul-based Chosun Daily that the country needs to expand the types of goods it exports and should shift more of its focus toward consumer goods such as health and beauty products and the service sector.
Kim Ji-yeon, Arirang News.
Reporter : email@example.com
China's low labor cost make it hard to compete price wise. China also practices "state capitalism".