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The economic ties between China and South Korea have evolved from a hierarchical division of labor during the last Five-Year Plan, which concluded last year, to a more layered, cooperative relationship in many areas. As trade between these two East Asian neighbors steadily increases, analysts suggest there’s significant potential for industrial synergy.
Several South Korean think tanks have highlighted strong opportunities for mutual benefit. They see South Korea leveraging Chinese technology to reduce costs, while Chinese companies could use the South Korean market as a testing ground for their products.
Trade figures for the past year show bilateral commerce grew by 1.7 percent, reaching approximately 2.37 trillion yuan (around $340 billion). China’s exports to South Korea totaled about 1.03 trillion yuan (roughly $147.9 billion), with imports from South Korea at approximately 1.34 trillion yuan.
Earlier this month, South Korean President Lee Jae-myung and his wife visited Shanghai on a state trip, participating in a forum focused on innovation and entrepreneurship.
Leading South Korean think tanks note and remain optimistic about the fact that South Korea has been China’s second-largest trading partner for the past two years. Insights gained from bilateral think tank collaborations and media exchanges indicate that, based on South Korea’s standards—evaluating trade on a country-by-country basis—its trade with China is of higher quality than trade with the United States and surpasses that of any individual ASEAN member nation. The economic connection between the two countries is now deeply rooted, with last year’s trade accounting for 5.2 percent of China’s total foreign trade, leaving room for further growth.
In sectors like robotics, autonomous driving, electric vehicles, and semiconductors, China has overtaken South Korea in terms of competitiveness, according to a recent report by a research institute specializing in South Korean policies. Within the semiconductor industry, China now leads South Korea in research and development, finished-product manufacturing, services, and local demand. Meanwhile, South Korea holds an advantage in the supply chain for materials, components, and equipment, as well as in overseas markets.
During the China–South Korea Innovation and Entrepreneurship Forum at the Shanghai International Convention Center on January 7, President Lee interacted with a robot developed by a Chinese company, AgiBot. The robot announced, “Our company’s latest strategic shareholders include South Korea’s LG Electronics and Mirae Asset Management.”
In his speech at the forum, President Lee urged both nations to cultivate an environment that promotes entrepreneurship and supports young entrepreneurs and professionals in exploring new ideas and collaborating on innovation. He emphasized that innovation shouldn’t be confined to a single country but should thrive through cross-border cooperation and technology sharing. He expressed hope that youth-led scientific and technological exchanges during China’s upcoming 15th Five-Year Plan, spanning from 2026 to 2030, will become routine and serve as a catalyst for economic productivity growth.
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