South Korea's Dilemma in Confronting China's Industrial Dominance
From Sewing to Robots, How to Counter a Nation Monopolizing Every Industry
By The Chosunilbo
Published 2025.09.24. 00:10
On the 20th, a humanoid robot demonstrates parcel delivery to visitors at the 2025 World Manufacturing Convention held in Hefei City, Anhui Province, eastern China.
The UK, US, Japan, and Germany, once the “factories of the world,” were powerhouses in certain key industries. Today, China is different. It seeks to dominate everything from the lowest to the highest tiers of manufacturing.
While reviving the sewing industry—a sector even middle-income countries avoid—into a “super-gap” industry armed with AI, it also monopolizes future industries like drones and robots. These are all fields where South Korea has excelled, is currently strong, or aims to succeed. What should we do in the face of a China that does everything?
China accounts for 31% of global manufacturing production—double that of the US (16%, second place) and more than the combined share of Japan, Germany, India, South Korea, and others ranked 3rd to 10th. Within that 31%, China dominates the skies (70% of the drone market), land (60% of the electric vehicle market), and seas (70% of the shipbuilding market). Moreover, its reach extends from the past (sewing) to the future (robots, AI).
The surprising return of the sewing industry to China, which had been shifting to Vietnam and Bangladesh, unfolded as follows. Alibaba, the world’s largest e-commerce company, launched the “Smart Garment Factory” project. AI analyzes sales data to predict which designs will sell well and establishes production plans accordingly. In factories, AI robots cut fabric with 99% accuracy and swiftly produce clothing. Recently, the company announced a “See now, Buy now” plan to release new clothing products weekly.
Shein, which is rewriting fashion formulas, goes further. It uses AI to analyze trends in real time, generating over 1,000 designs daily, then produces 100–200 pieces in small batches. It then runs an AI demand-prediction program and immediately scales up production for popular items. Even in the sewing industry, “inventory-free production” has become a reality. Tens of thousands of garment factories in Guangdong and Zhejiang now compete not on labor costs but on data and speed.
Next, logistics company SF Express steps in. AI calculates optimal delivery routes, and robots sort and package goods around the clock. The Wall Street Journal described this as the “new logistics era led by Alibaba and SF Express.”
The garment sector symbolizes Chinese manufacturing, which makes everything. From low-cost mass products like vitamin C raw materials (over 90%) and bicycles to high-end appliances, green energy sectors like solar panels, national infrastructure industries like telecommunications equipment and high-speed rail, and cutting-edge fields like robots and AI, it holds dominant global market shares in hundreds of industries. It is now said that modern life worldwide cannot be sustained for a day without Chinese products—a statement not exaggerated.
In every industry, it floods the market with near-comprehensive products. For example, in drones, it produces and controls every conceivable type: pesticide spraying, seed planting, construction bricklaying, painting, and high-rise window cleaning. Military drones are just a part. Robots are also rapidly expanding beyond factories to surgical assistants and caregiving robots. The world’s dependence on a China that makes everything continues to grow.
South Korea is becoming the biggest victim in the face of a China that makes and dominates everything. Whether intentional or not, most sectors China has encroached upon are those where South Korea has excelled or is strong. It seems China thinks, “If South Korea can do it, we can too,” and follows to overtake. In our representative industries, steel faces an uncertain future due to Chinese barriers. POSCO’s FINEX technology, once a global leader, was quickly caught up by Chinese companies like Bao Steel and Hebei Steel using similar technologies.
Petrochemicals, once a cash cow, now face an unprecedented crisis as China, our largest export market, expands production capacity. In market share, automobiles, shipbuilding, and smartphones have already fallen behind. China is rapidly entering fields where Korean companies were dominant, such as LNG carriers. In memory semiconductors, it has reached a level threatening Samsung Electronics and SK Hynix in 3D NAND flash. China narrowed the technology gap by poaching Korean engineers with high salaries, extracting their expertise, and discarding them. Even OLED technology, which South Korea commercialized first, was lost to China this way. Now, in every field, we are at the stage of being overtaken, not just chased.
We cannot abandon manufacturing. Arguments for transitioning to high-value industries or services by discarding manufacturing are outdated. The issue is not just manufacturing’s job creation and value-added effects. Without a manufacturing base, we cannot keep up with the Fourth Industrial Revolution. Even if AI designs smart factories, there must be facilities to implement and produce them. That data, in turn, strengthens AI. No matter how groundbreaking a new drug is, it is useless without mass production technology.
South Korean manufacturing has world-class artisans who have written the “Made in Korea” myth over decades. Their tacit knowledge—like a master welder’s skill in attaching dozens of tons of steel plates without error, a maintenance expert’s ability to detect machine abnormalities by subtle sounds, or a veteran engineer’s know-how affecting semiconductor yield by 0.1%—cannot be transmitted through money or manuals. It is a legacy passed down from the first generation of industrialization to us.
Ultimately, we must awaken and develop the manufacturing DNA within us. We must AI-ify the skills and spirit of these masters. POSCO’s “Lighthouse Factory” is one example. It captures artisans’ movements with sensors and vision AI, teaches robots, and digitizes problem-solving processes. This must spread across all manufacturing. New motivation must also be injected into research labs and production sites. Mannerism permeates our entire industry.
China does everything. It will not change. This means we cannot avoid it. Then, the only option is to fight and win.