South Korea: Sino–Korean Cooperation in a Competitive Era

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Author(s): Xi Li (Beijing Normal-Hong Kong Baptist University, China)
Copyright: 2026
Pages: 28
Source title: Cases on China's Partnerships and International Development in Asia
Source Author(s)/Editor(s): Youssef Elhaoussine (Beijing Normal-Hong Kong Baptist University, China), Edoardo Monaco (Beijing Normal-Hong Kong Baptist University, China), Selçuk Çolakoğlu (Beijing Normal-Hong Kong Baptist University, China)and Michal Vavřík (Beijing Normal-Hong Kong Baptist University, China)
DOI: 10.4018/979-8-3373-2990-1.ch012

Keywords: Business & Management / Business Science Reference / Global Business

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Abstract

This case examines the evolution of China–South Korea relations since 1992, highlighting how deep economic interdependence has developed alongside intensifying geopolitical constraints. Bilateral trade has expanded and upgraded from low-value to high-tech sectors, supported by the China–Korea FTA, RCEP, and growing two-way investment in semiconductors, new energy, and infrastructure. Financial ties moved from crisis-driven swaps toward wider RMB–won use, while cooperation broadened into development aid, agriculture, climate and clean energy initiatives, and rich cultural, educational, and tourism exchanges. At the same time, U.S. export controls, Korean agricultural protectionism, and security shocks such as THAAD expose the fragility of these links. The case argues that future Sino–Korean prosperity will depend on whether both sides can leverage complementarities in emerging industries while managing external pressure and domestic political resistance within a contested regional order.

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South Korea: Sino–Korean Cooperation in a Competitive Era

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