Korean Fiber Industry Receives Huge Impact Of RMB

According to a report recently released by the Korean Academy of industry, "the devaluation of the RMB, the export outlook and Revelation of major industries", recently, due to the continued depreciation of the RMB, the export industry with high export similarity between China and Korea will be negatively affected.

At present, all countries in the world have been making use of reducing their national currency value to increase import and export, and China has joined the currency war. The export of major industries in Korea is expected to be greatly affected.

The Industry Research Institute pointed out that South Korea has just been affected by Japan's devaluation of Japan's currency to promote the competitiveness of products, and if China also lowered its value to enhance its competitiveness, it will face a new challenge to the Korean export which has already been slump.

The price competitiveness of the global market will be improved, resulting in a reduction in demand for Korean products.

According to the analysis, the main industries of South Korea may be greatly affected by the depreciation of the RMB.

, general machinery, refining, household appliances (finished products) and steel.

Refinery projects increased because of cheap Chinese exports, and exports of Korean products were greatly reduced.

The influence of Chinese products on the high priced household appliance market is increasing, resulting in a reduction in demand for Korean products.

In addition, the iron and steel industry has increased its share in the global market due to the increased price competitiveness of Chinese products, and the relative position of Korea's steel industry has been reduced.

China's products almost occupy Vietnam and other Southeast Asian markets, while South Korea's exports are relatively low.

Due to the high similarity between general machinery and Chinese products, the export of medium class mechanical equipment will be reduced.

The industry research institute said that due to the rapid development of low development countries such as China, coupled with the recent global economic downturn, excessive supply, falling oil prices, devaluation of Japanese yen and RMB, and so on, the export environment of South Korea is gradually deteriorating. Therefore, it is necessary for South Korea's industry to carry out structural reforms with high intensity and enhance the competitiveness of prices and products, so as to respond to changes in the external industrial environment and actively expand markets such as India and Vietnam in order to break away from over reliance on exports to China.