Korean exports′ leading industries, semiconductors and automobiles losing muscle

Korean exports′ leading industries, semiconductors and automobiles losing muscle


With Korea′s domestic consumption picking
up in recent months,… the need for a rebound on the EXPORT front has become all the more
important. But according to Shin Se-min, shoring
up leading export industries might not be that easy.
Despite Korea′s outbound shipments posting a decline of ten straight months in October,…
falling nearly 16-percent on-year, the country′s chipmakers,… put up a good
fight. Samsung Electronics, the country′s top
producer, is expected to rake in 11-billion U.S. dollars in operating profit this year,…
while number two SK Hynix earned in 880-million just in the third quarter.
But industry watchers are worried that looming ahead is a downward spiral for global demand.
Already outbound shipments for chips in October fell seven-percent on-year,… down
five-and-a-half billion dollars. ″The unit cost has more than halved, as
manufacturers increased their production for D-RAM chips. On top of that, a slump in
PC markets has dampened demand.″ New smartphones rolling out aren′t expected
to prop up sagging demand either. Both Samsung and LG Electronics have been
logging lower sales, after each reaching their pinnacles in 2013 and 2014. ″Korean automakers aren′t doing much better.
In the first nine months of this year, Hyundai Motor and its affiliate Kia Motors saw their
overseas sales drop nearly three-and-a-half percent, compared to the same period last
year. This, as Korean automakers are increasingly being squeezed out of the U.S. and Chinese
markets as their price competitiveness erodes away.″
Under-performing Eurozone economies, weaker local currencies in emerging markets,….
as well as cheaper oil and material prices are just a few other factors driving down
automobile shipments. And experts say the outlook for Korea′s
exports will remain low for some time,… with no immediate sign of global demand picking
up. ″Given the circumstances, local exporters
will have to improve the quality of their products,… whether it be with lighter
chips or diversified cars with green technology to outpace Chinese competitors.″
Shifting away from slowing China and towards countries like India, while stepping up
exports on consumers goods is also key, as Korea is set to face long-term headwinds
on the export front. Shin Se-min, Arirang News.

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