[For three consecutive months of trade deficit with China, the decline of Korean enterprises has accelerated, and Korean media are still hard-mouthed: abandoned by China]
For three consecutive months, there was a trade deficit, and the presence of Korean companies in the Chinese market became lower and lower, and Chinese knew why, and the Korean media was still dead and hard,not only complaining that South Korean goods were abandoned by the Chinese market, but also blaming Chinese companies for developing technology too quickly.
According to the "Observer Network" news, on July 25, local time, South Korea's "Chosun Ilbo" once again reported on the increasingly unoptimistic market of South Korean companies operating in China with strange verbal arguments such as "selling misery" and "throwing pots", and the current situation of a trade deficit that has been in a row for three consecutive months since May this year. The report highlights the decline in market share of South Korean "giants" such as LG Electronics, Samsung Mobile Phones, and Hyundai Motor.
According to the report, LG Electronics, the world's second largest TV manufacturer, has almost completely lost the market to operate in China, accounting for 0.1% of the Chinese TV market in 2021 alone. Compared with the largest market share of 5.6% in China in 2009, the gap is simply not too big. After climbing to the top, the company quickly formulated a strategic goal to continue to expand the market in China, but the plan did not shine into reality. Now more than 10 years later, LG Electronics has not only failed to create another peak in China, but has driven backwards, and even drove faster and faster.
In 2021, LG Electronic TV will occupy 0.1% of the Chinese TV market, and the actual sales data will be about 30,000 units. In response to this data, the report quoted an electronics industry person as saying that considering China's huge population, perhaps all of these sales figures are supported by South Koreans in China. So it's no wonder the report lamented that the company is "losing its presence in the Chinese market."
In addition to the sharp decline in LG Electronics' TV sales in China, Samsung TV's market share in China also declined last year. The drop to 4.1% has caused Samsung TV, the world's largest TV manufacturer, to fall to 9th place in China.
Samsung mobile phones have also achieved good results in the Chinese mobile phone market, in 2013, the brand with a market share of 19.7%, directly won the Chinese mobile phone market. Like LG Electronics, Samsung also immediately discussed the expansion of the Chinese market, but the results were surprisingly similar. In the whole year of 2021, Samsung's mobile phone share in China was only 0.6%, ranking 10th. In addition to electronic devices such as mobile phones and televisions, the operation of Korean cars in China has suffered a cold winter for many years. Hyundai and Kia can't even squeeze into the top ten today.
In order to save the shrinking of the Chinese market, Samsung Electronics has made a lot of efforts, and at the end of last year, it also set up a dedicated business innovation team in Holland with the goal of "China's business taking off again". However, it is worth mentioning that at that time, the Korean industry was no longer optimistic about the Chinese market, and the overall atmosphere was that "it is impossible for Korean companies to return to the era of making money in the Chinese market". Looking at it now, this is probably a rare time for Korean enterprises to recognize the situation in China in advance.
It is reported that from 1993 to last year, South Korea's trade with China has maintained a surplus. In terms of months, it has been maintained since August 1994. In other words, the trade deficit in May this year broke the monthly surplus record of Korean companies maintaining trade with China for nearly 28 years. It is reported that the deficit was $1.099 billion in May, $1.214 billion in June, and as of July 20, the data has reached $1.539 billion. This means that the trade deficit will continue to widen.
A long time ago, the Chosun Ilbo commented on the decline of Korean companies in China, saying that South Korea and its largest trading partner, China, have lit up a red light for trade revenue and expenditure. What cannot be understood and accepted by the Chinese people is that the newspaper has frequently attributed these problems to China.
Previously, a number of Korean manufacturing "giants" including Lotte, Samsung, LG Electronics and other Korean manufacturing "giants" were exposed one after another, and when they were preparing to withdraw from the Chinese market, the newspaper tried to throw the pot to China's epidemic prevention measures "too severe", as well as the chinese company's surpassing of Korean companies. Today, the newspaper is still complaining that it is because of the rapid development of Chinese companies' technology that has squeezed Korean companies out of the Chinese market. It can be seen that to this day, the Korean media is still dead ducks with hard mouths.
At that time, the ROK completely ignored the opposition of the Chinese side and agreed to the US military's "THAAD entry into South Korea" with the so-called "North Korean threat", which instantly reduced Sino-ROK relations to a freezing point. Although Moon Jae-in came to power and was able to warm up the relationship with the "three no promises", the impact of the incident has always been there.
Moreover, Han Xin's president, Yin Xiyue, showed a very obvious pro-US stance as early as the election campaign. After he came to power, he would certainly deliberately overturn the "three noes." On the day Biden announced the establishment of the "Indo-Pacific Economic Framework", the Rok military conveniently announced the news of the restoration of the THAAD base as soon as possible. These are all measures that are not conducive to Sino-Rok relations, and the acceleration of the decline of Korean enterprises in China is the result of cocooning themselves, but the Korean media are not willing to admit it.
