Analysis of Trade Structure and Industrial Cooperation Between Korea and Guangdong Province in China

The purpose of this study is to analyze the trade structure of Korea and Guangdong Province to find out what industries the two sides are specialized in and to draw up a plan for cooperation between Korea and Guangdong Province in the future. Korea’s main export product to China is the parts and materials industry, accounting for more than 75 percent of the total. Manufacturers of Guangdong Province mainly include electrical and electronic devices such as mobile phones, computers, and home appliances. Therefore, exports of displays, semiconductors, and telecommunication equipment, which are essential for mobile phones, computers, and home appliances, and components and facilities are promising. Korean companies and Guangdong companies need to expand cooperation based on their mutual comparative advantage. Guangdong Province has an advantage over South Korea in designing integrated circuits and packaging and testing. It is believed that division of labor within industries between the two countries will be possible in these areas. Guangdong Province is the region that produces the most TV and mobile phones in China. Therefore, demands for medium and small displays are high. Strategic partnerships between Chinese assembly companies, Korean parts and materials companies, and equipment manufacturers are needed in display industries. Companies seeking to enter Guangdong Province need to actively consider sharing their stakes with each other for long-term stable transactions.