Seoul, Dec 23 South Korean companies pointed to heated global competition amid China's cheap exports as a major source of concern for their businesses next year, which is feared to affect them more than US President-elect Donald Trump's tariff policies, a central bank report showed on Monday.
According to the report on the regional economy released by the Bank of Korea (BOK), South Korean firms expected domestic exports to continue to expand in 2025, though the pace of growth is projected to slow down compared with this year.
But they voiced concerns about intensifying competition to be caused by the oversupply of Chinese goods and a flood of cheap exports into the global market, reports Yonhap news agency.
The report was based on a survey of 200 local exporters conducted by the BOK in November on their prospects for and conditions of exports in 2025.
The central bank has expected exports, a key growth engine for South Korea, to increase 6.3 per cent in 2024, but the figure would shrink to 1.5 per cent next year.
The local companies also said the technological competitiveness of Chinese companies, particularly in the rechargeable batteries and steel sectors, would pose a threat to their businesses, the report showed.
As for tariff policies by the new Donald Trump administration, South Korean steelmakers and carmakers expressed concerns, but other firms in industries facing fierce competition with China said they would rather benefit from the new U.S. tariff policy.
Local companies securing a competitive edge also said they will be able to manage the potential negative impacts of the Trump policy, the report read.
Trump has vowed to impose "universal baseline tariffs" of a minimum of 10 per cent on all imported goods, and raise tariffs on imports from China to as high as 60 per cent.
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