Korea's chip-led export diversifying into EVs, robots: report
[THE INVESTOR] Korea’s exports mainly, led by the chip industry, are becoming more diversified as eight new industries related to the “fourth industrial revolution” are emerging as new growth engines, a study suggested on Feb. 11.
According to the trade report released by the Korea International Trade Association, all of the new eight industries saw double-digit growth last year.
The eight new industries -- electric cars, robots, bio health, aerospace, energy, new materials, next-generation display and next-generation semiconductor –are designated by a joint committee of private and public sectors in 2016.
The exports of electric cars rose the most by 186 percent, followed by aerospace and robots, which grew 37.3 percent and 36.2 percent, respectively. The list also included next-generation display and chip which saw a 34.4 percent and 27.1 percent increase in exports. Overseas shipments of energy and new material also rose 23.7 percent and 15.2 percent, respectively, and bio health with 13.7 percent.
Overall, the combined exports of the eight industries stood at $73.6 billion last year, accounting for 12.8 percent of the nation’s total exports.
By destination, China was the biggest importer buying products worth $20 billion from the eight industries, followed by Vietnam and the European Union.
The emerging nations, including China and Vietnam, accounted for 55 percent of the nation’s total exports. The growth rate of exports to emerging nations stood at 34.3 percent, compared to 20.5 percent for advanced nations last year.
The industries also created a large number of jobs. The exports created 92,000 new jobs last year, accounting for 29 percent of the total of new jobs.
As to job creation per $1 million in exports, the robot industry created the largest amount with 10.9 new hires, followed by electric cars and bio health with 9.7 and 9.4, respectively.
“For the continued growth of new industries, the nation should foster more advanced materials and products such as subminiature sensor and intelligent chips that can realize base technologies for the fourth industrial revolution,” said Moon Byeong-ki, a senior researcher of KITA’s trend analysis division.
By Shin Ji-hye / The Korea Herald (firstname.lastname@example.org)