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Characteristics and Driving Factors of the South Korea-China Digital Trade

  • Journal of Asia-Pacific Studies
  • Abbr : JAPS
  • 2026, 33(2), pp.5~40
  • DOI : 10.18107/japs.2026.33.2.001
  • Publisher : Institute of Global Affairs
  • Research Area : Social Science > Social Science in general
  • Received : April 20, 2026
  • Accepted : June 2, 2026
  • Published : June 30, 2026

Jin, Huizhen 1 Zhao, Xuanyi 2

1Jilin University
2City University of Hong Kong

Accredited

ABSTRACT

As the global digital economy continues to develop and regional economic and trade patterns constantly adjust, digital trade between South Korea and China is gradually becoming a new breakthrough point for bilateral cooperation and a new driving force for regional integration. Based on UNCTAD data on South Korea-China digital trade from 2015 to 2024, this paper explores the characteristics and competitiveness of South Korea-China digital trade using indicators such as RCA and ESI, and analyzes its driving factors using the CMS model. Empirical results show that the growth rate of South Korea-China digital trade exhibits characteristics of high structural concentration, differentiated competitiveness, and asymmetrical market dependence. Regarding driving factors, the primary driver of China's digital trade export growth to South Korea is the structural effect. Second-order decomposition results show that the contribution of the growth effect in the first and second stages is greater than that of the product structure effect, while the contribution of the product structure effect in the third and fourth stages is greater than that of the growth effect. Similarly, the primary driver of South Korea's digital trade export growth to China is the structural effect. Further,second-order decomposition reveals that the contribution of the product structure effect is higher than that of the growth effect. The findings of this paper enrich the applied research on the driving factors of digital trade and promoting the development of digital trade between South Korea and China, and the Asia, and for reshaping China's competitive advantage in digital trade.

Citation status

* References for papers published after 2024 are currently being built.