Export Outlook for 10 Domestic Major Industries

Production and export of domestic major industries except for steel is likely to grow by 10 percent this year.

According to the report on `the outlook for major 10 manufacturing industries` that the Ministry of Commerce, Industry and Energy (MOCIE) announced on the 2nd, production of semiconductor (14.9 percent), color TV set (23.8 percent), communication devices (20.4 percent), and PC (23.4 percent) is likely to increase 10 percent.

The report estimated that the export of semiconductor (39.8 percent), PC (35.9 percent), communication devices (29.6 percent) would increase. Especially, the export of digital TV set will increase 67.3 percent from last year.

Thanks to the increase of domestic demand by 20.5 percent in the first quarter (January to March), the production of automobiles increased 8.0 percent, and will increase 6.8 percent this year.

The production and export of communication devices continues to rise this year from last year’s improvement.

MOCIE estimated that telecom equipment export would rise by 29.6 percent with production increase by 20.4 percent, while domestic demand in saturation point would decrease 13.3 percent after last year’s 6.0 percent decrease.

Orders are likely to fall off in shipbuilding by 14.2 to 22 percent, while amount of construction would increase 2.3 to 5.4 percent.

The production of steel is estimated to stay at the same level as last year, as export decreased 5.1 percent due to the safe guard measurement of U.S. and EU. Kim Kyung-Shik chief of Industry Policy Bureau in MOCIE said, “it is urgent to develop high value-added products, as lots of domestic major industry products are losing demands in the world market due to the surplus of supply and the threat of later starters like China.”

Ja-Ryong Koo bonhong@donga.com