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Intensifying International Industrial Linkage Relation and its Implication

Author Youn, Woojin, Park, Sung Keun Date 2014.11.03 Issue No 601

The synchronization of industrial production between countries is more intensifying due to the strengthened international industrial linkage through the  trade of intermediate goods for the last two decades.


China is rapidly transforming itself to the global intermediate goods supplier from the global final goods supplier.


The 7 Chinese industries emerged as the ones of the global 20 largest industries as of  2011, thanks to the strengthened international industrial linkage relation resulting from the country’s  sharply improved capacity to supply intermediate goods


Even the Korean leading industries such as electric and electronic, metal, and chemical industries witnessed its growth into global industries, ranking between 50th and 100th places in the world.  Korea is witnessing its industrial linkage led by the conventional advanced countries like the U.S. and Japan, shift toward  the relation led by emerging economies such as China.


Korea is analyzed to be in the most close industrial linkage with China, overtaking the U.S. and Japan.

As the industrial linkage relation between Korea and China is intensifying, the paradigm of the conventional intermediate goods-finished goods  trade structure that have been maintained, is changing..


It is necessary for Korea and China to establish industrial and trade cooperation by diversifying the division of labor structure focusing on intermediate goods, so that two countries can maximize mutual benefits.