By Choi Sung-jin
Korean products' quality competitiveness in the European market was lower than those of the U.S. and Japan but higher than China's, according to a report.
Assuming that the U.S. products' quality competitiveness is 100, those of Japan, Korea and China were 92.4, 85.9 and 79.2, respectively, said the report by the Korea Center for International Finance.
For fair and correct comparison, the report excluded price factors such as the exchange rate and consumer prices while taking into account other factors, including the elasticity of substitute goods, direct distance between Frankfurt, Germany, as the EU's logistical hub, and the respective countries' capitals as well as the conclusion of free trade agreements.
In the overall quality competitiveness of manufactured products, the U.S.'s was 91.7 percent, followed by Japan's 89.9 percent, Korea's 83.7 percent and China's 77.6 percent.
In the machinery, transport (shipbuilding) and petrochemical sectors, however, Korea was more competitive than Japan and China. In processed food, Korea (105.7 percent) was even ahead of the United States and Japan (91.6 percent).
"Despite the fall in global import demand, EU's domestic demand is expected to remain firm," the report said, calling for Korea to step up efforts to increase shipments to Europe. Korea's exports in January plunged 18.5 percent from a year ago but its shipment to the EU increased 7.3 percent.
Noting that China's quality competitiveness has sharply improved in recent years, the report said, "China might increase its exports aggressively by price cuts to cope with its swelling inventories."
Korean products' quality competitiveness in the European market was lower than those of the U.S. and Japan but higher than China's, according to a report.
Assuming that the U.S. products' quality competitiveness is 100, those of Japan, Korea and China were 92.4, 85.9 and 79.2, respectively, said the report by the Korea Center for International Finance.
For fair and correct comparison, the report excluded price factors such as the exchange rate and consumer prices while taking into account other factors, including the elasticity of substitute goods, direct distance between Frankfurt, Germany, as the EU's logistical hub, and the respective countries' capitals as well as the conclusion of free trade agreements.
In the overall quality competitiveness of manufactured products, the U.S.'s was 91.7 percent, followed by Japan's 89.9 percent, Korea's 83.7 percent and China's 77.6 percent.
In the machinery, transport (shipbuilding) and petrochemical sectors, however, Korea was more competitive than Japan and China. In processed food, Korea (105.7 percent) was even ahead of the United States and Japan (91.6 percent).
"Despite the fall in global import demand, EU's domestic demand is expected to remain firm," the report said, calling for Korea to step up efforts to increase shipments to Europe. Korea's exports in January plunged 18.5 percent from a year ago but its shipment to the EU increased 7.3 percent.
Noting that China's quality competitiveness has sharply improved in recent years, the report said, "China might increase its exports aggressively by price cuts to cope with its swelling inventories."
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