No industries to enjoy boom next year: report

No Korean industries are likely to prosper next year, despite some business improvements in several sectors, such as the information and communication technology, automotive and steelmaking industries, a report by a research institute showed Monday.

According to the Hyundai Research Institute’s report on the future of seven Korean industries, the ICT industry will continue to gradually recover next year, particularly in the production and export of semiconductors. However, the tougher competition with foreign companies and saturated smartphone market will likely limit its growth. 

The vehicle industry, which suffered a slump in exports this year, will likely see a rebound in both production and exports as the economy of the US and emerging countries gradually improve.

Korean steelmakers will also see improvements in steel prices and exports as the oversupply issue of Chinese steel has been alleviated upon Beijing’s restructuring initiatives.

The report, however, stressed that no particular boom is expected in any of the seven industries.

The Korean construction and petrochemical industries are instead anticipated to further suffer setbacks next year.

The construction industry showed gradual improvement earlier this year, but growth in the amount of orders is slowing, said the report. The government’s attempt to cut the budget for social overhead capital will also impact the private construction market.

The petrochemical industry may also face a retreat in its business as sluggish export performance, restructuring moves and rising oil prices damper its growth, despite the growing domestic need, the report said.

Shipbuilders will continue to have difficulties in obtaining contracts, like this year, it added.

“The measures are needed to fit the characteristics of each industry. (The government) should also put efforts into improving economic health and diversifying the export market amid rising global and domestic uncertainties from spreading economic protectionism,” said HRI head researcher Joo Won.

By Lee Hyun-jeong (rene@heraldcorp.com)