The Study On Sino-Korea Trade In Semiconductor Industry

Korea is one of the major export countries of semiconductor. However, as China's export volume of semiconductor has been increased recently, it threatens Korea's export of semiconductor, not only domestic demand but also the global market. The study first reveals the present trends of two countries' semiconductor industry. In the case of Korea, decrease in the price of semiconductor, decrease in exporting semiconductor to U.S., increase in importing non-memory semiconductor from Singapore, Taiwan, and China, and increase in re-importing from China are the main factors of trade deficit. In contrast, China's export record has been recording high growth.In trends of high-tech trade between Korea and China, the bilateral trade has been growing, especially high-tech trade. The share of total high technology products in the Korean export to China has risen, while the share of mid-high, mid-low, and low technology products has fallen.The study also shows analysis on semiconductor trade between Korea and China by including IIT, TSI, and ESI. In the IIT of semiconductor, the result shows the increase in exporting discrete semiconductor from China to Korea, and its proportion of the increase is higher than the proportion of the increase in exporting total integrated circuits from China to Korea. In TSI, Korea has more positive results than China; there are positive numbers in 2000,2004,2005,2006,2007, and 2009 in Korea. China, however, almost years are negative TSI without 2008. In ESI, the result shows that export structures between two countries are becoming similar without 2008 and 2009.