The Interaction between China, Japan, and Korea in the Export Market

JUNG, Kyu-Chul

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This paper analyzes changes in the export potential and

competitiveness of China, Japan, and Korea. The analysis of Japan’s

export market share reveals that in sectors where Korea’s potential

was strong in the early 1990s, Japan’s market share diminished. This

suggests the possibility that Korea was catching up with Japan, eating

into Japan’s market share. The same analysis of Korea’s export market

share in the 2000s shows, for items in which China’s export potential

was high, Korea’s market share has declined comparatively since

2010, with the tendency growing much larger. China’s export potential

continues to expand in markets for Korea’s key export products,

making it difficult to rule out the possibility that Korea’s

competitiveness in key export products will be hindered, driven by the

catching up of China. To respond to these challenges, it is important

for Korea continuously to foster and enhance creative and core

capabilities that latecomers will not easily be able to emulate.

Issue Date
Korea Development Institute
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