KATHMANDU: South Korean President Lee Jae-myung has said that China has caught up with or even surpassed South Korea in technology and capital in several sectors. He made the statement in an interview with China Media Group ahead of his official visit to China.
Lee will travel with a delegation of around 200 South Korean business leaders. The visit comes as competition between China and South Korea increases, especially in the automotive and electric vehicle (EV) sectors.
He said earlier cooperation followed a vertical model, where Korea provided technology and capital, and China provided labor. China’s fast industrial growth has changed this into a more equal partnership, particularly in artificial intelligence, high-tech industries, and vehicle software.
In the automotive sector, China is now the world’s largest producer and exporter of new energy vehicles. South Korea remains strong in vehicle manufacturing, power electronics, and battery supply chains.
China has expanded auto exports, while Korean automakers still depend on China as a major production base and market.
Battery competition is increasing. Chinese companies lead in LFP batteries and key raw materials like lithium and graphite. South Korean firms dominate ternary lithium batteries, but face pressure from lower-cost Chinese products.
Competition is also growing in vehicle software and intelligent driving. Chinese brands are rapidly rolling out ADAS and AI-based features. Korean automakers are investing more in software-defined vehicles and autonomous technology.
Lee said the two countries have deeply connected supply chains and should avoid economic conflict. His visit includes talks on cooperation in advanced manufacturing, automotive, and new energy industries, as both sides adapt to rising global competition.
