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“Cannot Beat China with Commodity Products... Should Target the Premium Market” [ESF 2026]

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Day 2 of the 17th Edaily Strategy Forum

Presentation by Professor Ki-soon Park, Graduate School of China, Sungkyunkwan University

“Selective Cooperation Required in light of Supply Chain Risks”

“Should seek cooperation with China in non-cutting-edge industries.”

[Edaily By Reporter Eung-tae Kim] Park Ki-soon, a professor at Sungkyunkwan University‘s Graduate School of China, stated on the 17th that “Korea should target the premium market, as it’d be difficult to compete against China‘s mass-market products.”

Professor Park stated at the ’17th Edaily Strategy Forum‘ held at the Shilla Hotel in Jung-gu, Seoul, on this day, “China was an absolute export destination that consistently generated large trade surpluses for Korea in the past, but that has changed,” He added, “We now need a strategy that reflects the changing dynamics of China’s consumer market.” Professor Park, China expert who served as the President of the China Samsung Economic Research Institute, delivered a presentation on “Opportunities and Risks in Korea-China Industrial Cooperation in the Era of Supply Chain Realignment.”

Professor Park advised that Korea should pursue strategic cooperation to reduce risks amid trade frictions and supply chain problems between the U.S. and China. He suggested that Korea should strengthen cooperation with the U.S. in high-tech and economic security sectors, while maintaining cooperation with China in non-high-tech industries.

Particularly in non-high-tech sectors, he advised seeking cooperation opportunities by targeting the premium market rather than price-competitive commodity products. Beauty, food, and healthcare, which possess K-brand premium positioning, are cited as representative examples.

Professor Park explained, “When Korean small and medium-sized companies launch products in China, Chinese competitors often release nearly identical products at lower prices within a month. While Korean companies may earn short-term profits in the Chinese market, many eventually lose their competitiveness over the long term.” He added “China‘s consumer market itself is expected to evolve toward premium consumption as income levels continue to rise. Ultimately, as Chinese consumers become wealthier, the market will increasingly move toward premium products,” he said. “Korean companies should focus on premium segments rather than commodity products, while small and medium-sized enterprises should cooperate with local partners to strengthen their competitiveness in China.”