Korean Firms Urged to Tap China’s Supply Chain at AI Conference

Summary

Kim Jong-moon, head of KIC China, told the eighth World Artificial Intelligence Conference that Korean companies should actively attend exhibitions in China to 'benchmark the global and Chinese markets'. He said 'it is difficult to maintain market competitiveness if detached from China's industrial and supply chain system'. In 2025, bilateral trade reached US$331.2 billion, with South Korea remaining China's second-largest trading partner.

South Korea's global share of power batteries fell from 31.7% in 2021 to 15.3% in 2025, while Chinese companies collectively exceeded 70%. Kim said the core value of China's supply chain lies in the innovation efficiency of high-speed iteration, and Korean firms need to adapt to the intense pace of competition.

Commentary

In 2025, Sino-Korean trade hit US$331.2 billion. Samsung produces 40% of its NAND flash memory in Xi'an, while SK Hynix has a significant portion of its DRAM capacity in China. Behind this deep interdependence, competition is intensifying.

The combined market share of South Korea's top three battery makers fell to 15.3%, while Chinese companies surpassed 70%, highlighting that China's supply chain has moved from low-cost to high-speed innovation. New Zealand SME owners should recognise that Asian factories are no longer cheap workshops but agile innovation engines. If you have ideas for consumer electronics or health devices, quick prototyping in the Yangtze River Delta or Pearl River Delta can significantly shorten R&D cycles.

However, diversify risk to avoid single-source dependency, and monitor supply fluctuations in key areas like semiconductors between China and South Korea that may affect equipment procurement.

Keywords: Sino-Korean trade, Korean companies, China supply chain, artificial intelligence conference, power batteries, industrial upgrade, Kim Jong-moon, industrial and supply chain, competitiveness, replacement

Source: Global Times