Exports of 12 Key Industries Forecast to Fall 9.1% in 2020
The Korea Institute for Industrial Economics & Trade said in its recent report that most key industries of South Korea would have to continue to struggle in the second half of this year in the wake of COVID-19 and only a handful of sectors benefiting from the rise of the contactless economy would be free from the worldwide slump.
According to the institute, South Korea’s 12 key industries recorded a decline in exports of 13.5 percent in the first half of this year and the figure is estimated at negative 6.1 percent for the second half and negative 9.1 percent for this year as a whole.
Specifically, the exports from the information and communications equipment, semiconductor, general machinery and shipbuilding sectors are estimated to edge up 5.5 percent, 6.2 percent, 1.4 percent and 1 percent in the second half, respectively. On the other hand, those from the oil refining industry is estimated to plummet by 42.5 percent due to low international oil prices and the ongoing economic recession is predicted to result in a 6.5 percent decline in automobile exports. Likewise, display and textile exports are forecast to fall 14.2 percent and 12 percent due to demand contraction, respectively.
On the production side, textile (-5.7 percent), steel (-4.1 percent), automobile (-2.5 percent) and consumer electronics (-2.3 percent) are likely to retrogress in the second half while semiconductor (11.1 percent), information and communications equipment (4.3 percent) and secondary battery (3.6 percent) show some growth. The institute stressed that more financial and tax assistance, more labor market flexibility and additional investment attraction measures are urgent to maintain industrial foundations.