Korea Inc. to focus more on India, Vietnam as biz partners

South Korean companies are set to concentrate more on business with emerging markets including India and Vietnam than Asian major countries such as China and Japan while keeping the focus on the US, the world’s largest economy, a survey showed on Friday.

Vietnam and India ranked No. 2 and No. 3, respectively, followed by China and Japan on the list of South Korea’s future key business partners, according to the Korea International Trade Association’s poll of 906 local companies conducted Aug. 10-30.

China and Japan were the second and the third most important business partners currently while Vietnam and India were rated No. 4 and No. 6 on the board, the survey showed. The US topped both lists of current and future important partners.

“Core demand for South Korean companies’ overseas businesses is shifting to emerging Asian markets such as Vietnam and India from China and Japan,” the private association said. “We will actively expand businesses targeting emerging countries, especially India, Vietnam and Indonesia, where demand for South Korean companies’ overseas business demand is concentrated.”

China is South Korea’s largest export market but shipments of Asia’s fourth-largest economy to the world’s No. 2 market fell for a 15th straight month on the property crisis on the mainland in August.

South Korea’s central bank chief said the local economy was no longer supported by China in May.

On the other hand, South Korean companies have been actively expanding their businesses in India and Vietnam to take advantage of cheaper labor costs and large local markets.

Write to Hyung-Kyu Kim at khk@hankyung.com
 
Jongwoo Cheon edited this article.