U.S.-China trade war feared to leave S.Korea's economy in red light

By Lim Chang-won Posted : June 20, 2018, 14:33 Updated : June 20, 2018, 14:33

[AP / Yonhap]


SEOUL -- With a trade war intensifying between China and the United States, concerns are growing among South Korean traders that exports may see a direct hit as China is a key market for South Korean goods.

According to the Ministry of Commerce, Industry and Energy in December 2019, South Korea's trade dependence accounts for 68.8 percent of gross domestic product (GDP). Economic reports last year showed that U.S. and Chinese markets account for 12 percent and 24.8 percent of South Korea's total exports respectively.

There are worries that the trade war would affect exports of parts and semi-finished products used for steel products and automobiles as China imports a large quantity of intermediate goods from South Korea. China accounts for 45.7 percent of South Korean petrochemical exports.

Should China's economic growth slows down ceteris paribus, demand for imports from South Korea will fall, affecting exports of intermediate and finished products?

According to the Hyundai Economic Research Institute, a 25 percent U.S. tariff on the $50 billion worth of imports, South Korea's exports to China may decrease by $28.26 billion. South Korea's total exports to China stood at $142.1 billion.

This story was contributed by Jazin Wee, an editorial assistant.
 
기사 이미지 확대 보기
닫기