New Analysis
Faced with rising raw material costs and poor logistics, major South Korean firms have accelerated their expansion of production bases worldwide to reduce over-reliance on China.
Korean conglomerates such as Samsung, SK Group, Hyundai Motor, Posco, and Lotte have put forward their measures to address the pressures facing the global supply chain. The Russia-Ukraine war and Beijing’s draconian “zero-COVID” policy have also accelerated the supply chain restructuring.
China remains South Korea’s largest trading partner in both imports and exports. Any disruption in the Chinese supply chain could immediately impact the South Korean economy. According to the World Bank, more than 21 percent of South Korea’s imports come from China.
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