Korean Media: Chinese Robots Accelerate Their Entry Into The Korean Market

Not long ago, a South Korean company reached a cooperation intention with a Chinese logistics machine manufacturer. The two sides agreed that a Chinese company would produce unmanned transport aircraft at half the price of a similar product made in South Korea.

A source said, Although Chinese machines are inferior to Korean ones in quality, they are gaining ground in the Korean market because they can cut costs at affordable prices.

Recently, Korean manufacturers have introduced mechanization in production lines and logistics. Against this backdrop, Chinese-made robots are gaining ground in the Korean market. It is estimated that more than 60 percent of the logistics robots imported by South Korean companies are made in China.

The logistics machine industry is expected to account for half of the global robot market within three years, and Korea s logistics machine industry is being suppressed by China.

The key to dominating the Korean market is the cheap price of Chinese-made robots. The price of a korean-made logistics robot ranges from 30 million won to 100 million won, while the price of a Chinese robot is half that of a Korean one.

The price advantage comes from government-led robot industrial parks in Shenzhen and Dongguan in Guangdong province. Robot manufacturers in such complexes will receive subsidies of 10 percent of invested equipment and 15 percent of sales.

Thanks to government support, 36 companies in China's logistics robot industry recorded sales of more than 20 billion won last year. On the other hand, the combined sales of Korea's top five logistics robot companies are around 10 billion won.

With the "Made in China" campaign, Korean companies are focusing on customized robot services to capture the remaining market. However, there are many Korean companies that sell Chinese-made robots in Korea by licensing them, and are reduced to a robot company that only provides after-sales service.