South Korean exporters of products ranging from steel and petrochemicals to textiles and cosmetics are struggling to compete with a glut of goods from Chinese rivals, as the effects of overcapacity and sluggish domestic demand spill over into global markets.
Even Korean makers of kimchi, the fermented vegetable product widely seen as a symbol of national identity, are feeling the heat. South Korea imported more kimchi in the first half of 2024 — almost all of it from China — than it exported, amid intensifying competition from Chinese kimchi that cost six times less than the Korean equivalent.
South Korea was widely predicted to be a winner of increasing trade tensions between China and the west, as US and EU tariffs and restrictions on China’s access to next-generation energy technologies drove global buyers to Korea’s semiconductor and electric vehicle industries. The value of Korean exports has risen every month since October last year.