The export of South Korea's auto parts to China dropped

The drops of export to China in the first 10 months cause South Korea's automobile parts dealers worry about the hollowing domestic auto parts market.

International Trade Association of South Korea said South Korea's exports of auto parts grew 46.4%. But from January to October this year it has dropped to 22.7%. Among which, the drop of exports to China of auto is the main reason for the decreasing of auto parts export: parts exports to China is 2.11 billion U.S. dollars in the first 10 months, a year-on-year decrease of 3.6%.

In 2004, auto parts export amount from South Korea to China are of 1.632 billion U.S. dollars, an increase of 92.6%; and exports to China in 2005 is of 2.583 billion U.S. dollars, an increase of 58.3%. However, the rapid growth hasn't maintained this year.

International Trade Association of South Korea thinks that the reason of the decreasing in exports of parts and components, is some South Korean auto enterprises' entering in China, and mass adopting of China's domestic parts and components production.

"In fact, the reality is not all that they thought. Since the South Korean auto enterprises' entering into China to set up joint ventures, some Korean parts suppliers have also followed and transferred to China. This led the reducing of parts exports to a certain extent." Wang Zhihui, an industry analyst from Shenyin&Wanguo Auto said.