Growth outlook for key Korean industries

Growth outlook for key Korean industries
Published: 17 August 2005

The South Korean government on Wednesday cast a rosy outlook for the nation’s major industries, saying solid gains in exports and domestic demand will boost their growth in the second half. The nation’s 11 key industries, including shipbuilding, semiconductors and machinery are likely to do well in the July-December period after pulling off gains in the first half, the Ministry of Commerce, Industry and Energy said. Textiles should rebound after a weak start, while telecommunication, steel and automobiles should continue to post positive growth, it said.

"The industries will post solid growth in the coming months, while the recovery in domestic consumption should help fuel industrial growth and add vibrancy," a ministry official said. The domestic economy is making a slower-than-expected comeback, but overall industrial conditions are improving after slowed growth in the first half, he said. The South Korean economy grew 2.7 per cent in the first quarter of this year, and its growth accelerated to 3.3 per cent in the April-June period.  The ministry, however, said sectors such as industrial systems businesses and wires, cement and consumer electronics may remain in the dumps in the second half.