South Korea's Tech Edge Over China Fades as Competition Intensifies
South Korea's technological lead over China has shrunk in recent years. A new report from the country's Ministry of Science and ICT shows the gap widened between 2022 and 2024. The findings suggest that competing directly with China in high-tech sectors may no longer be a realistic option for Seoul.
Over the past five years, China has made rapid progress in key industries. In semiconductor production, Chinese firm SMIC advanced in mature chip nodes, while South Korea's Samsung and SK Hynix maintained leadership in cutting-edge chips but faced growing competition. The battery sector saw an even sharper shift, with China's CATL and BYD overtaking South Korea's LG and Samsung in market share and cost efficiency, securing dominance in electric vehicle supply chains.
China also closed gaps in strategic technologies like AI and 5G through heavy state-backed investment. Meanwhile, South Korea's traditional strengths in high-end semiconductors still outpace China but lag behind US leaders like TSMC, Intel, and Nvidia. The report noted that China reduced its technological gap with the US by 0.8 years, while South Korea narrowed its own by just 0.4 years.
The industrial chains of both countries remain tightly linked, creating room for cooperation despite fierce competition. South Korean officials are now exploring pragmatic partnerships with Chinese firms in select areas. However, the report warns that maintaining a long-term edge over China in emerging technologies will be difficult, especially as globalisation slows and other economies expand rapidly.
The assessment highlights South Korea's shifting position in the global tech race. Instead of direct competition, the country may focus on high-end, niche segments where it can stay ahead. Cooperation with China in certain sectors could also help sustain its role as a key regional supplier.
