ASIATODAY.ID, SEOUL — South Korean President Lee Jae-myung has made a rare and blunt admission: China has caught up with — and in several key sectors surpassed — South Korea in advanced technology, particularly in electric vehicles (EVs), batteries, automotive software, and artificial intelligence (AI).
The remarks were delivered in an interview with China Media Group (CMG) ahead of Lee’s official visit to China, where he is leading a delegation of nearly 200 South Korean business leaders. The visit comes amid intensifying industrial rivalry between the two Asian economic powers.
An Outdated Partnership Model
President Lee acknowledged that past China–South Korea economic cooperation was built on a vertical structure, with South Korea supplying advanced technology and capital while China provided labor and manufacturing scale. That model, he said, is no longer viable.
“China’s rapid technological advancement has fundamentally reshaped this relationship,” Lee noted, calling for a more balanced and horizontal form of cooperation.
Future collaboration, he added, must focus on high-end industries such as AI, advanced manufacturing, and software-driven technologies that increasingly overlap with modern automotive production.
China’s EV and Battery Dominance
The automotive sector clearly reflects this shifting balance. China has become the world’s largest producer and exporter of new energy vehicles, while South Korea remains a major global player in automotive manufacturing, power electronics, and battery supply chains — albeit under growing pressure.
China currently:
– Dominates lithium iron phosphate (LFP) battery production
– Controls large portions of upstream lithium, cobalt, and graphite processing
– Offers significantly lower production costs
South Korean firms, including Hyundai Motor Group, continue to lead in ternary lithium battery technology, widely used by global automakers. However, they face mounting competition from lower-cost Chinese alternatives as EV adoption accelerates worldwide.
The Battle Shifts to Software and Smart Vehicles
Competition is also tightening in vehicle software and intelligent driving systems. Chinese automakers have rapidly deployed: Advanced driver-assistance systems (ADAS), In-house vehicle operating systems, AI-powered features across mass-market models.
In response, South Korean manufacturers are expanding investments in software-defined vehicles, autonomous driving research, and artificial intelligence to protect their global competitiveness.
Avoiding Economic Confrontation
Despite acknowledging the technological gap, President Lee stressed that economic confrontation must be avoided, highlighting the deeply integrated industrial supply chains between China and South Korea.
His visit to China includes meetings with Chinese leaders and business executives, with discussions expected to focus on advanced manufacturing frameworks, particularly in electric vehicles, batteries, and new energy technologies.
The trip comes as both countries recalibrate their industrial strategies amid escalating competition in EVs, batteries, and next-generation automotive technologies. (ATN)
Follow Us at Google News and WA Channel