By Park Jae-hyuk
A growing number of Korean businesses are experiencing the China's economic retaliation over the deployment of a U.S. anti-missile defense system here, a recent survey by the Korea Federation of Small and Medium Business (K-Biz) showed Sunday.
Up to 26 percent of 300 small and medium-sized enterprises (SMEs) indicated in a recent K-Biz study that they have suffered Beijing's protectionist measures, after Seoul's decision to deploy the U.S. Terminal High Altitude Area Defense (THAAD) battery.
Considering the ratio was a mere 5.3 percent before the announcement of the THAAD installment here midway through last year, observers point out that the latest data would refute the Seoul administration's official denial of China's economic retaliations.
For example, the Ministry of Food and Drug Safety has claimed China's recent import bans on Korean cosmetics and groceries were just a matter of inadequate documents, not for political reasons.
According to the K-Biz survey, the most common type of retaliatory measure was stricter sanitary regulations.
The data also showed 50 firms among 78 that experienced the retaliatory measures have management troubles. They said the average amount of exports to China decreased 44 percent in a year.
Three out of 10 SMEs said they are looking for alternative markets to China. But a similar number of firms said they will enhance competitiveness of their products to satisfy China's standards.
SMEs demanded the Korean government discuss the issue with China to deal with the new trade barriers while K-Biz requested they turn their attention to new markets.
"Recently, more Korean SMEs are facing stronger protectionism of China and they are thinking the THAAD row is the biggest reason," a K-Biz official said. "The government should expand its support to the firms so that they will be able to find alternative markets to China."
Last year, the Chinese government banned imports of a large amount of cosmetics and foods produced in Korea.
Industry watchers warned that the regulatory measures will be imposed on steel, chemical, integrated circuits and lithium-ion batteries this year, which may deal a blow to larger businesses in such industries.
According to the Korea Trade-Investment Promotion Agency (KOTRA), 13 import restriction cases on Korean products were reported in the second half last year. The restrictions include one safeguard step on sugar and 12 anti-dumping tariffs against steel, chemicals and textiles.
A growing number of Korean businesses are experiencing the China's economic retaliation over the deployment of a U.S. anti-missile defense system here, a recent survey by the Korea Federation of Small and Medium Business (K-Biz) showed Sunday.
Up to 26 percent of 300 small and medium-sized enterprises (SMEs) indicated in a recent K-Biz study that they have suffered Beijing's protectionist measures, after Seoul's decision to deploy the U.S. Terminal High Altitude Area Defense (THAAD) battery.
Considering the ratio was a mere 5.3 percent before the announcement of the THAAD installment here midway through last year, observers point out that the latest data would refute the Seoul administration's official denial of China's economic retaliations.
For example, the Ministry of Food and Drug Safety has claimed China's recent import bans on Korean cosmetics and groceries were just a matter of inadequate documents, not for political reasons.
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According to the K-Biz survey, the most common type of retaliatory measure was stricter sanitary regulations.
The data also showed 50 firms among 78 that experienced the retaliatory measures have management troubles. They said the average amount of exports to China decreased 44 percent in a year.
Three out of 10 SMEs said they are looking for alternative markets to China. But a similar number of firms said they will enhance competitiveness of their products to satisfy China's standards.
SMEs demanded the Korean government discuss the issue with China to deal with the new trade barriers while K-Biz requested they turn their attention to new markets.
"Recently, more Korean SMEs are facing stronger protectionism of China and they are thinking the THAAD row is the biggest reason," a K-Biz official said. "The government should expand its support to the firms so that they will be able to find alternative markets to China."
Last year, the Chinese government banned imports of a large amount of cosmetics and foods produced in Korea.
Industry watchers warned that the regulatory measures will be imposed on steel, chemical, integrated circuits and lithium-ion batteries this year, which may deal a blow to larger businesses in such industries.
According to the Korea Trade-Investment Promotion Agency (KOTRA), 13 import restriction cases on Korean products were reported in the second half last year. The restrictions include one safeguard step on sugar and 12 anti-dumping tariffs against steel, chemicals and textiles.
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