Study finds 47.7% of South Korean export items lost competitiveness in CPTPP markets
In short
A Korea Institute for Industrial Economics and Trade study found that 2,474 of 5,185 South Korean export items lost competitiveness in CPTPP markets after the trade pact took effect. The remaining 2,711 items, or 52.3%, improved, and researchers cautioned that non-membership alone cannot explain the declines.
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The Korea Institute for Industrial Economics and Trade released a report on October 14 showing that South Korean exports had mixed competitiveness trends in CPTPP markets after the pact took effect. Of 5,185 items analysed, 2,474, or 47.7%, registered a decline, while 2,711, or 52.3%, improved, according to Asia Economy and Yonhap. The report compared 2012-2018 with 2021-2024, excluding 2019 and 2020 because of COVID-19. [ 1 , 3 ]
The study used the revealed symmetric comparative advantage index, which ranges from -1 to 1, with higher values indicating greater relative competitiveness. Yonhap said the analysis covered 11 CPTPP members, excluding Britain, which joined at the end of 2024. Among the declining South Korean items grouped into 15 manufacturing sectors, members' indicators rose in all 15 sectors. [ 1 , 3 ]
Shipbuilding recorded the largest gap in changes between South Korea and member countries: South Korea's indicator fell 0.262 while members' rose 0.125. For declining automobile items, researchers highlighted Mexico, where members' indicator rose 0.312; excluding Mexico, the other 10 members' indicator fell 0.042. Newsis reported that South Korea's lack of a free-trade agreement with Mexico, and the resulting tariff differences, may have contributed. [ 1 , 2 , 4 ]
The findings do not establish that staying outside CPTPP caused the declines. Researchers said other factors, including Chinese production expansion and industry competitiveness, were also reflected in the figures, CBS NoCut News reported. The institute recommended monitoring individual export items and considering improvements in trade relations with Mexico. Yonhap reported that President Lee Jae-myung had instructed officials on October 8 not to apply for CPTPP membership this year amid agricultural and fisheries concerns. [ 3 , 5 ]
Why it matters
Researchers warned that South Korea's position in CPTPP markets could weaken if it remains outside the pact. They recommended monitoring export items and improving trade relations with Mexico, regardless of whether South Korea joins.
Key facts
- The study compared 2012-2018 with 2021-2024, excluding 2019 and 2020 because of COVID-19. [ 1 , 3 , 4 ]
- Competitiveness declined for 2,474 items, or 47.7%, and rose for 2,711, or 52.3%. [ 1 , 3 , 10 ]
- Shipbuilding had the largest gap between South Korean and CPTPP members' changes in competitiveness among 15 manufacturing sectors examined. [ 1 , 2 , 4 , 10 ]
- Researchers said tariff differences in Mexico may have affected South Korean automobile competitiveness. [ 1 , 2 , 4 , 5 ]
- President Lee Jae-myung instructed officials on October 8 not to apply to join CPTPP this year. [ 3 , 10 ]
Confirmed by several sources
Still unclear
- How much of the decline can be attributed to South Korea remaining outside CPTPP. Researchers cautioned that other influences, including Chinese production capacity and industry conditions, also affect competitiveness.