Industry Information

Title 9 of 10 Korean Pillar Industries See Domestic Demand Rise in 2018
Manager Ralphy Song Department in charge Exhibition Managment Team
Contact 02-3459-0028 Date 2017-12-28 14:46:08.337

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9 of 10 Korean Pillar Industries See Domestic Demand Rise in 2018


 

Nine of ten major Korean industries see positive growth in terms of domestic demand, riding on overall business pickup at home and abroad in 2018, according to forecast by Korea Institute for Industrial Economics & Trade (KIET).

Semiconductor, blessed with the feasible progress of the 4th Industrial Revolution, is seen to register 17.7% expansion yoy in the domestic demand horizon. The sole major industry whose domestic demand will decrease is steel with -2.6 % yoy ,according to KIET forecast.


 

Division

Change (%)

Major Factors for Domestic Demand Status

1st

2nd

Annual

Upbeat

Semiconductor

42.3

2.4

17.7

- Expansion of semiconductor-demand sectors including IoT, big data, cloud, etc.

- Simultaneous demand increase both from enterprises evolving data centers, etc and individual sectors with sophistication of smart phone spec. and high capacity demand increase in consumer electronics.

Consumer Electronics

8.2

7.9

8.0

- Improvement of consumption psychology generated by economic recovery, hikes of minimum wage, and job creation-oriented policies.

- Demand increase for new products such as high-efficiency consumer electronics, IoT consumer electronics, apparels dryer, etc.

Favorable

ICT Appliances

4.1

4.4

4.3

- Expanded alternative demand for new smart phones and PCs.

- New service demand increase for artificial intelligence-associated voice recognition, etc.

General Machinery

1.6

5.6

3.7

- Investment demand increase on the strength of high-tech industries promotion policies.

- Continuous expansion for major industrial facilities including semiconductor, display, etc.

Textiles

0.3

4.9

2.5

- Private consumption increase for apparels with the increase of minimum wage system and improvement in employment and income distribution policies.

- Demand increase for textile materials for apparels and for industrial textiles.

Display

2.0

2.5

2.2

- Rising expectation for Olympics and World Cup event stimulus, larger-size TV preferences and supply expansion of OLED smart phones.

- Growth limits with ripening status of demand industries such as TV, smart phones and PCs.

Petrochemical

1.9

2.1

2.0

- Recovery of private consumption despite stagnated construction businesses.

- Improvement of demand industries such as automobiles, textiles and ICT.

Automobile

1.9

0.0

1.0

- Enhanced consumption psychology thanks to increase in welfare budget, increase in minimum wage system, etc

- Launching of diverse financing commodities, conducive to sti domestic demand increase.

Food & Beverage

0.1

0.5

0.3

- Government's income-led growth strategy and big events including Pyeongchang Winter Olympics

- Launching of new products attractive for consumers

Sluggish

Steel

-4.1

-1.0

-2.6

- Sluggish production activities of such steel-demand industries as shipbuilding, consumer electronics, automobiles, etc.

- Demand decrease from construction investment sector.