South Korean textile sector may suffer trade deficit for the second time in the row due to the cheap Chinese products flooding the market, according to industry data compiled by the Korean International Trade Association (KITA).
As per the data, the textile industry witnessed a decrease of 4.8 per cent year-on-year in the first 11 months of the year to make US $ 12.4 billion and imports of clothing and textiles increased 1 per cent. The imports in the country reached US $ 13.52 billion over the period of January-November in 2016.
If the scenario continues to remain the same in the last month of 2016, imports may exceed the previous record of US $ 14.65 billion in 2014. The textile industry of Asian country has already logged a trade deficit of US $ 1.09 billion, exceeding last year’s deficit of US $ 157 million for a huge margin. High labour costs and competition from foreign countries like China affected the industry’s profitability.