Korean machinery part makers to seek more aggressive advance into China market
A positive expectation is forming among Korean machinery circles that the recently concluded Korea-China FTA would be a factor generating benefit for them. According to the Korea Association of Machinery Industry (KOAMI), Korean companies will be likely to benefit from the FTA in terms of tariff rate – due to China’s average tariff rate (8.1%) is higher than that of Korea (6.6%).
As Korean-made machinery products have comparative advantages over those from China in terms of quality, the rate of Korean companies’ advance into Chinese market is expected to increase significantly in the medium-and longterm.
A spokesperson of the agency said “For most machinery products, China’s tariff rate is higher than that of Korea, so, if tariffs at the two sides are abolished at the same time, Korea will likely take advantage from it, but only export of lowpriced tools, parts and components is expected to gradually be increased because of China’s price competiveness.
So, the need for expanding the technology gap with Chinese competitors is strongly emerging as an important issue Korean companies manufacturing low-priced machinery tools, parts and components to solve.
As of last year, China emerged as the world’s largest importer of Korean-made general machinery comprising 24.2% of Korea’s total machinery exports, but recently the balance of payments remains to be seen gradually decreased.
The following selected companies are some of Korea’s representative machinery part makers taking considerable dominance in the global market in their specific areas.
With keen interest from the Korean government and a governmental agency, they plan to elevate their more aggressive advance into the China market with an aim to increase the ratio of their market dominance than competitors worldwide, on the occasion of the recently concluded Korea-China FTA.
- Turbine casting and diaphragms
- Industrial Bearings
- Pipe racking system components
- Office chair parts
- Industrial motor
- Special bolts & nuts
- Mineral exploration drilling products
- Caster
- Refrigerant ball valves
- Cable gland& GRP junction box
- Engine parts
- Metal fasteners and precision parts
- Track roller
- Rod end bearings
- Gear coupling
- BLDC-geared motor
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