And now to the second of our three-part series looking at China's economy.
Today, we focus on how the economic slowdown in China is affecting the Korean economy.
Hwang Ji-hye has the story, and she starts with the hurting export figures.
Korea's exports to China dropped... by almost half-a-percent last year...
A stark contrast from the average annual growth of over 20 percent from 2000 to 2008... and 14 percent... after the global financial crisis.
It used to be global demand that determined Korea's exports to China... as Korean firms largely ship intermediary goods to the country.
The situation now,... however, is quite different.
"A majority of intermediary goods exported to China for assembly are now consumed within China. So, Korea's exports to China are more affected by the demand in that country than in other nations like the U.S. or the EU."
A recent report shows... that a... one percentage point drop in Chinese growth equals a zero-point-1-7 percentage point cut in Korea's GDP.
And with China posting its worst growth in 24 years in 2014, prompting the government to focus on boosting domestic consumption,... experts say that old business strategies will no longer work.
"The consumer market will continue to expand in China, so in the long-term, Korean exporters should look into what kind of consumer goods will meet the needs of the Chinese people."
What's even more unsettling is that... Chinese firms are now improving their own supply capacity... to replace Korean intermediary goods.
Many key Korean industries are concerned that their main export items... like display screens, steel and petrochemical products will get squeezed out of China within the next few years.
Such a changing landscape has raised the urgency for Korean exporters to produce high-quality finished goods catering to China's changing demand.
Hwang Ji-hye, Arirang News.
