Exports of key products forecast to grow 12% in 2021: biz body

Exports of South Korea's key industries are expected to grow nearly 12 percent in 2021 thanks to economic rebounds in major economies, a business body said Tuesday.

The Korea Industry Alliance Forum (KIAF) projected overseas shipments of chips, automobiles and nine other major business sectors to expand 11.9 percent on-year to $422.2 billion next year.

Annualized growth forecasts are 14 percent for ships, 10.3 percent for automobiles, 6.4 percent for machinery and 3.9 percent for electronics.

"With vaccinations likely to end the new coronavirus, the global economy is expected to make a V-shaped recovery in the coming year, boosting South Korea's exports," KIAF chief Jeong Marn-ki said in an online forum.

Capital spending by chips, autos, electronics and four other sectors is forecast to reach 53.2 trillion won ($48.1 billion), down 3.1 percent from this year and 14.3 percent from 2019.

The semiconductor industry is predicted to expand 8 percent on-year in 2021, backed by economic recoveries in major markets and a limited increase in supply.

On the back of a base effect and eco-friendly policies across the globe, the battery sector is expected to grow a whopping 65 percent in 2021 from this year.

Output of South Korea's auto industry, the world's fifth-largest, is estimated to increase 10.3 percent on-year in 2021. Domestic demand is expected to drop 4.4 percent on-year to 1.82 million units, with exports likely to soar 22.9 percent to 2.34 million, according to the KIAF. (Yonhap)