Korea enjoys China’s WTO entry

China’s WTO entry would bring Korea to increase export amounts by $5.55 billion by 2005 and to enjoy $2.4 billion in trade surplus, the KDI expects.

Mr. Jeong-dong Park, a researcher from Korea Development Institute (KDI) revealed December 2 that he anticipates an increase of Korea exports to China somewhere between $2.2 and $5.55 billion in the six years from 2000 to 2005 as a consequence of China’s WTO entry. His expectations are based on data from the International Trade Committee (ITC) and Bank of Korea.

Mr. Park explained using 2000 as a starting point because China’s WTO entry was discussed from that time and began to affect the real trade situation then.

ITC predicted that Korea would enjoy increasing exports to China of $2.22 billion to $2.43 billion under the influence of WTO entry and an improving trade surplus with China, $1.64 billion to $1.73 billion. The Bank of Korea presumed that Korea would expand exports toward China as much as $2.7 billion for six years and increase approximately $300 million in imports during the same period, marking $2.4 billion in the black for the trade surplus.

“China showed strong competitive points on light industry articles, and Korea on the heavy chemistry parts, compared by items. After China’s WTO entry, however, it will reform its industrial structure focusing on heavy chemical industry in the long term, increasing competition between Korea and China,” said Mr. Park.

“Korea has to be covered with more investment in design and planning, weak points for Korea, and also expand investment in R&D, to prepare for competition with China,” he added.