Korea must seek new momentum in 'Asia New 7'
Posted April. 02, 2024 07:55,
Updated April. 02, 2024 09:45
Korea must seek new momentum in 'Asia New 7'.
April. 02, 2024 07:55.
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Asia is emerging as an alternative market for Korea's exports amidst the prolonged U.S.-China conflict and China's economic recession. Representative examples include the 'New 7 Asian countries,' including Indonesia and Malaysia, rich in natural resources, India, Vietnam, and Singapore serving as export hubs, and Thailand and the Philippines as growing world markets. The strategic importance of Asia's New 7 countries, serving as stable production bases and huge consumer markets, is increasing.
The potential of the New 7 is robust on both the supply and demand sides. With a population of 2.05 billion, an economy of $6.89 trillion, and abundant natural resources including nickel and cobalt, it exhibits significant dynamism driven by its youthful population and geopolitical advantages amid the U.S.-China conflict. This results in growth rates surpassing the global average. Not merely a low-cost production base, it represents an opportunity-rich consumer market. For instance, India witnessed the sale of 148.1 million smartphones last year, becoming the world's second-largest market, surpassing the United States. Yet, with 40% of the Indian population still using feature phones, the potential for market expansion remains boundless.
Last year, South Korea witnessed a significant transformation in its export landscape, marking a departure from the norm of the past three decades. Notably, the country experienced a trade deficit with China amounting to $18 billion, a historic occurrence since establishing diplomatic ties in 1992. However, amidst this shift, the emergence of the New 7 markets breathed new life into South Korea's export prospects, prompting a necessary reduction in reliance on China. With total exports to the New 7 markets reaching $125.64 billion last year, surpassing those to China for the first time, these markets have transitioned from mere avenues for export diversification to becoming pivotal targets requiring strategic focus.
Korean companies are actively recognizing the potential of New 7 and investing efforts accordingly. In the Indian smartphone market, Samsung Electronics secured the top position last year with an 18.0% market share, while Hyundai Motor Company sold 67,450 cars in Vietnam, surpassing Toyota to claim the leading spot. Furthermore, a significant number of production bases from the top 10 conglomerates are entering these markets. Leveraging abundant local labor and resources, these companies are targeting the domestic market and global markets such as the United States and Europe.
However, tapping into the New 7 market isn't a simple endeavor, even for those eager to do so. It requires fierce competition against economic powerhouses such as China and Japan, each with its own market dominance. Adopting a lax approach akin to our previous strategy in China, where we aimed to sell one product to each person and reach a billion in sales, could lead to trouble. Careful analysis and tailored entry strategies for each country are imperative. Moreover, comprehensive government support is essential. Only through collaborative efforts between the government and businesses can the New 7 evolve from a realm of mere opportunity and potential into a promising frontier for the Korean economy.
韓國語
Asia is emerging as an alternative market for Korea's exports amidst the prolonged U.S.-China conflict and China's economic recession. Representative examples include the 'New 7 Asian countries,' including Indonesia and Malaysia, rich in natural resources, India, Vietnam, and Singapore serving as export hubs, and Thailand and the Philippines as growing world markets. The strategic importance of Asia's New 7 countries, serving as stable production bases and huge consumer markets, is increasing.
The potential of the New 7 is robust on both the supply and demand sides. With a population of 2.05 billion, an economy of $6.89 trillion, and abundant natural resources including nickel and cobalt, it exhibits significant dynamism driven by its youthful population and geopolitical advantages amid the U.S.-China conflict. This results in growth rates surpassing the global average. Not merely a low-cost production base, it represents an opportunity-rich consumer market. For instance, India witnessed the sale of 148.1 million smartphones last year, becoming the world's second-largest market, surpassing the United States. Yet, with 40% of the Indian population still using feature phones, the potential for market expansion remains boundless.
Last year, South Korea witnessed a significant transformation in its export landscape, marking a departure from the norm of the past three decades. Notably, the country experienced a trade deficit with China amounting to $18 billion, a historic occurrence since establishing diplomatic ties in 1992. However, amidst this shift, the emergence of the New 7 markets breathed new life into South Korea's export prospects, prompting a necessary reduction in reliance on China. With total exports to the New 7 markets reaching $125.64 billion last year, surpassing those to China for the first time, these markets have transitioned from mere avenues for export diversification to becoming pivotal targets requiring strategic focus.
Korean companies are actively recognizing the potential of New 7 and investing efforts accordingly. In the Indian smartphone market, Samsung Electronics secured the top position last year with an 18.0% market share, while Hyundai Motor Company sold 67,450 cars in Vietnam, surpassing Toyota to claim the leading spot. Furthermore, a significant number of production bases from the top 10 conglomerates are entering these markets. Leveraging abundant local labor and resources, these companies are targeting the domestic market and global markets such as the United States and Europe.
However, tapping into the New 7 market isn't a simple endeavor, even for those eager to do so. It requires fierce competition against economic powerhouses such as China and Japan, each with its own market dominance. Adopting a lax approach akin to our previous strategy in China, where we aimed to sell one product to each person and reach a billion in sales, could lead to trouble. Careful analysis and tailored entry strategies for each country are imperative. Moreover, comprehensive government support is essential. Only through collaborative efforts between the government and businesses can the New 7 evolve from a realm of mere opportunity and potential into a promising frontier for the Korean economy.
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