A New Turning Point in Korea-China Industrial Cooperation: The Launch of the KS Ingma Platform

Industrial cooperation between Korea and China is entering a new phase. The recently launched ‘KS Ingma’ platform seems poised to become a turning point that could fundamentally change the way companies from both countries collaborate. It appears that the shared understanding between the two nations that economic cooperation must continue, despite the complexities of their relationship, has led to the establishment of such a platform.

Personally, I believe the launch of KS Ingma signifies more than just a simple cooperation platform. In 2025, as the reorganization of the global supply chain accelerates, Korea and China are presenting a new model of industrial cooperation. Particularly considering the difficulties Korean companies face in the Chinese market amid ongoing US-China tensions, the importance of such an official cooperation channel is growing.

The involvement of S2W, a Seoul-based cybersecurity company, in the platform’s establishment is an intriguing point. S2W’s participation highlights new possibilities for digital cooperation between Korea and China. However, cooperation in the cybersecurity sector is a highly sensitive area, as both countries have significant concerns regarding digital sovereignty and data security.

Looking at the trade volume between Korea and China clarifies the significance of this platform. As of 2024, the trade volume between the two countries recorded approximately $240 billion, accounting for about 20% of Korea’s total trade. Although China remains Korea’s largest trading partner, its share has been gradually declining in recent years. Korea’s trade dependency on China, which was 25.1% in 2019, fell to 19.8% in 2024.

Evolution of the Cooperation Model through a Digital Platform

The core of the KS Ingma platform lies in establishing a digital-based cooperation system. The plan is to enhance the cooperation efficiency of companies from both countries through real-time information sharing, digital contracts, and blockchain-based transactions, moving away from traditional trade methods. This aligns with the recent growth trends in the global B2B platform market.

For instance, Alibaba, based in Hangzhou, China, recorded a 12% increase in B2B platform revenue in 2024, reaching approximately $18 billion. Meanwhile, Korea’s KOTRA operates the Global Window platform, but it has had limitations in providing China-specific services. KS Ingma could fill this gap.

This platform could present significant opportunities, especially for small and medium-sized enterprises (SMEs). Previously, entering the Chinese market required finding local partners or navigating complex procedures, but now access is simpler through the platform. According to the Korea International Trade Association, the export share of Korean SMEs to China accounts for about 15% of total SME exports, and these companies are expected to benefit the most.

It is important to note that this is not merely a platform for trade transactions. It encompasses a comprehensive platform for various forms of cooperation, including technological collaboration, investment attraction, and personnel exchange. This differentiates it from existing trade platforms.

For example, looking at the display technology cooperation case between Samsung Electronics, based in Suwon, Gyeonggi Province, and China’s BOE, based in Beijing, we can see the need for such a platform. The two companies have been jointly developing OLED technology since 2023, which involved significant time and costs at the initial cooperation stage. A platform like KS Ingma could have facilitated a more efficient process.

Strategic Significance Amid Global Supply Chain Reorganization

The launch of this platform should be viewed in the broader context of global supply chain reorganization. With countries like the US and Europe pursuing domestic-centric supply chains through measures like the CHIPS Act and the Net-Zero Industry Act, Korea and China seem to be responding with a strategy of complementary cooperation.

Take the semiconductor sector as an example. Korea leads in memory semiconductors (with SK Hynix and Samsung Electronics holding a combined market share of about 70%), while China excels in packaging and testing. JCET, based in Jiangsu, China, holds about 21% of the global semiconductor packaging market. Cooperation leveraging such complementarities could be further systematized through the KS Ingma platform.

The battery sector is similar. Although competition between LG Energy Solution, based in Seoul, and CATL, based in Fujian, China, is fierce, cooperation is necessary in the raw material supply chain. China holds a dominant position in processing key raw materials like lithium and cobalt, with a market share of about 60% in lithium processing as of 2024.

However, we must not overlook the risk factors. Recent challenges faced by Korean companies in China reveal structural issues that cannot be resolved through cooperation alone. Political risks are significant, as seen in the withdrawal of Lotte Mart following the THAAD deployment and recent issues related to the Ukraine war.

Personally, I believe for such a platform to succeed, it must operate based purely on economic logic. Can it be managed independently, separated from political issues? This seems to be the most crucial point. Looking at the economic cooperation between Germany and China, Volkswagen, based in Wolfsburg, Germany, sells about 4 million units annually in the Chinese market while maintaining a degree of separation from political issues.

Another consideration is data security and the risk of technology leakage. Given the digital platform’s nature, a significant amount of corporate information and technical data is shared, posing a risk of core technology leakage. This requires a cautious approach, especially in Korea’s strong sectors like semiconductors, displays, and battery technology.

Nevertheless, the launch of the KS Ingma platform is a meaningful attempt. It is positive in that it establishes a practical cooperation channel led by the private sector, moving away from government-led cooperation. If it can provide services that companies from both countries truly need, it could become a new model for Korea-China economic cooperation.

We should watch how this platform develops, but it seems clear that economic cooperation between Korea and China is evolving to a new stage. Especially at a time when digital transformation is accelerating, this platform-based cooperation model could serve as a reference for cooperation between other countries. Ultimately, its success will depend on how much tangible results it can produce.

This article was written by adding personal opinions and analysis after reading the Untitled article.

Disclaimer: This blog is not a news outlet, and the content written is the author’s personal opinion. The responsibility for investment decisions lies with the investor, and no responsibility is taken for investment losses based on the content of this article.