Production of Local Manufacturing Industry, ‘Big Difference Between Areas’

The production of the local manufacturing industry entirely increased for the second quarter (April to June), but there is a big difference between regions.

According to ‘trend of the local financial economy’ reported by Bank of Korea on August 14, the production of manufacturing industry of Gyeonggi, Chungnam, Chungbuk, Gwangju and Ulsan area of the second quarter increased by 10∼30% over the second quarter of the last year owing to the favorable tendency of semiconductor, communication equipment, household electronic appliances and shipping.

Besides, Incheon, Gyeongbuk, Gyeongnam, Jeonnam, Daejeon, Gangwon and Jeju area showed the decrease on the production of the second quarter’s manufacturing industry, decreased by 0.4∼3.7% over the same period of the last year, owing to a slump in a chemical product, shipping, communication equipment and food & beverage products.

The national production of the manufacturing industry increased by 6.8% for the second quarter.

Hwang Gwang-Myeong, the assistant manager of regional economy, Bank of Korea forecasted “As the result of investigation on a business prospect of the third quarter for local manufacturing industries, the estimate(119) considerably exceeded the base (100). However, this estimate is lower than one of the previous quarter, and so the rate of local economic growth will slow down.”

For the local consumption of the second quarter, the sales of department stores and discount stores increased by 15.4% over the same period of the last year, focused on the electric home appliances and clothes. Also, as the number of registered motorcars increased by 11.5%, it showed the high growth rate.

However, in terms of a facility investment, there is a new investment only in certain areas such as Geyonggi (semiconductor), Chungnam & Daejeon(office equipment), Gwangju & Jeongnam (machinery equipment) and Gyeongnam (shipping). The remaining areas showed the alternative investment for maintenance.

Sang-Chul Kim sckim007@donga.com