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2016 Outlook for 12 Key Industries

Author Leading Industry Research Division Date 2016.06.23 Issue No 629

Exports of the 12 key industries will continue to decline, albeit at a pace slower than that of the first half of 2016.

○ Key export industries will struggle as demand from favorable emerging markets grows weaker, while their Chinese competitors become stronger. However, the rate of decline will slow, as last year’s poor performance will ensure a large base effect.

○ A few exceptions to this trend will likely be display devices, machinery, and food and beverages, due to their rising global demand, as well as steel, as its export value is predicted to increase in the near future.


The IT, food service, and oil refining industries will perform slightly better in the domestic market, while most other industries will continue to decline.

○ The 2016 Rio Olympics will have a somewhat positive impact on the sales of electronics, display devices, and data communication equipment (DCE), while oil refining companies will benefit from increased demand for petroleum products, caused by falling oil prices. The food and beverage industry will also show growth, due to the expected expansion of the processed food market.


In the second half of 2016, the economic recession will lead industries to report a general decrease in production. The leading industries of Korea’s economy will be particularly affected by this trend, especially the shipbuilding and semiconductor industries.
○ A severe lack of orders in the shipbuilding sector, which is currently undergoing a restructuring process, will cause a major decline in production, and semiconductor manufacturing is expected to come to a halt due to a reduction in DRAM production, as a means of controlling supply and demand, and expansion of overseas production.