By Choi Sung-jin
For Korea to boost its sagging exports and find new growth momentum, its businesses should make the most of India and Vietnam, the Federation of Korean Industries (FKI) said recently.
"If the Korean economy, which heavily relies on foreign trade, is to sustain its growth, the nation ought to diversify its export markets," said the lobby group for family-controlled conglomerates at a workshop Friday. "It can find answers in the two promising emerging markets _ Vietnam and India."
Eom Chi-sung, chief of FKI's international headquarters, pointed out four problems in Korea's exports _ shipments that have declined for 19 consecutive months, the aging of five major export items (36 years on average), falling contribution to economic growth (from 22.7 percent in 2011 to 15.4 percent in 2015), and undue dependency on the Chinese market (32 percent of the total).
As reasons for these phenomena, he cited shrinking global trade, the spread of protectionism among major economies and China's economic slowdown.
In an FKI survey of 50 economic experts, 68.5 percent said undue dependency on China posed risks to the Korean economy, and 32.9 percent of them pointed to Vietnam and India as promising emerging economies.
Eom said both countries were implementing policies to attract foreign investment, and their economic growth rates and increases in foreign direct investment are higher than those of China.
In addition, their labor costs are half of China's while the median ages of the two countries _ 26 for Vietnam and 19 for India _ are about 10 years younger than China's 35, which is why their propensity to consume is also far higher, he added.
About 1,300 Korean businesses are operating in Vietnam, including affiliates of the four largest Korean chaebol _ Samsung, Hyundai, LG and SK groups _ and about 300 companies have advanced to India.
For Korea to boost its sagging exports and find new growth momentum, its businesses should make the most of India and Vietnam, the Federation of Korean Industries (FKI) said recently.
"If the Korean economy, which heavily relies on foreign trade, is to sustain its growth, the nation ought to diversify its export markets," said the lobby group for family-controlled conglomerates at a workshop Friday. "It can find answers in the two promising emerging markets _ Vietnam and India."
Eom Chi-sung, chief of FKI's international headquarters, pointed out four problems in Korea's exports _ shipments that have declined for 19 consecutive months, the aging of five major export items (36 years on average), falling contribution to economic growth (from 22.7 percent in 2011 to 15.4 percent in 2015), and undue dependency on the Chinese market (32 percent of the total).
As reasons for these phenomena, he cited shrinking global trade, the spread of protectionism among major economies and China's economic slowdown.
In an FKI survey of 50 economic experts, 68.5 percent said undue dependency on China posed risks to the Korean economy, and 32.9 percent of them pointed to Vietnam and India as promising emerging economies.
Eom said both countries were implementing policies to attract foreign investment, and their economic growth rates and increases in foreign direct investment are higher than those of China.
In addition, their labor costs are half of China's while the median ages of the two countries _ 26 for Vietnam and 19 for India _ are about 10 years younger than China's 35, which is why their propensity to consume is also far higher, he added.
About 1,300 Korean businesses are operating in Vietnam, including affiliates of the four largest Korean chaebol _ Samsung, Hyundai, LG and SK groups _ and about 300 companies have advanced to India.
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