China's Robot Industry, Over a Million Firms Strong, Leads Export Market

South Korea's industrial sector is facing structural difficulties due to increasing reliance on foreign funding. The proportion of foreign financial institutions has significantly grown in key areas such as the nation's largest private offshore wind power project and ship financing. Foreign banks, including Bank of America (BofA), have provided 380 billion won for SK E&S's planned offshore wind complex, the country's largest private offshore wind farm. In the ship financing market last year, foreign financial institutions accounted for 66%, a 3 percentage point increase from the previous year. The Korea Development Bank analyzed that even large-scale low-interest loan policies are insufficient to meet the full demand for policy finance in advanced industries. Defense contractors narrowly avoided export cancellations due to a lack of financial support during export deals with Poland last year.

China's robot industry, bolstered by over one million companies, has launched an aggressive push into overseas markets. In the first quarter, exports reached 11.32 billion yuan (approximately 2.5685 trillion won), with cleaning robots spearheading this growth, accounting for 68.5% of the total. Last year, Chinese companies dominated the global domestic robot vacuum cleaner market, with the top five firms holding a combined market share of 54.5%. Exports of industrial robots also surged by 42% year-on-year, surpassing import volumes for the first time. However, China is experiencing fierce price wars due to the proliferation of companies. The average price of 6-axis collaborative robots fell by 15% year-on-year, and the price of cleaning robots for offices and small stores dropped by 38.2% over four years. Gaogong Robot Industry Research Institute diagnosed these cutthroat competition practices as a result of a lack of technological differentiation.

The rapid proliferation of AI data centers has led to a surge in demand for memory semiconductors, sending 'chipflation' shockwaves through the consumer market. DRAM and NAND prices have quadrupled in the past year, prompting major IT companies to raise prices for their flagship products. Apple increased the price of its 16-inch MacBook Pro by $300, and Microsoft will raise the price of the Xbox Series S by $100-$150 starting August 1. Apple has decided to release only the base model of its M6 chip and skip higher-end versions, responding to increased costs driven by surging demand for on-device AI and supply constraints. Aggressive investments by AI hyperscalers have caused memory semiconductor prices to skyrocket, with market research firm TechInsights forecasting unavoidable supply shortages. Micron's Chief Business Officer pointed out that excessive price-cutting pressure from customers in the past led to a contraction in facility investment, resulting in the current supply shortage crisis.

South Korean venture companies are facing significant challenges in securing follow-on funding. In 2024, venture debt in the United States reached $53 billion (approximately 82 trillion won), while South Korea's figure was only around $70 million (approximately 100 billion won), showing a gap of about 750 times. In countries like the US, UK, and Japan, venture debt accounts for 24-25% of VC equity investments, whereas in South Korea, it remains below 1%. Venture companies often face funding shortages after initial investments, leading them to sell equity at low prices or suffer growth delays. The 5-year survival rate for South Korean startups stands at 36.4%, below the OECD average of 45.4%. Funds raised by KOSDAQ-listed companies from the capital market have steadily decreased from 1.637 trillion won in 2020 to 191.9 billion won in 2024. A financial industry official criticized the extremely small figure for venture debt as evidence that a market evaluating companies based on technology and growth potential simply does not exist in South Korea.