Posted on 08 Nov 2022
The Federation of Korean Industries said at a recent seminar that every main industry of South Korea will have to struggle next year, with the only exception of shipbuilding.
According to the federation, South Korean shipbuilders’ order backlogs are already large, with the global LNG carrier demand continuing to increase and international ship prices expected to keep rising until June next year. “In addition, the global energy demand is expected to recover in the third quarter of 2023 to result in an increase in tanker orders and warship orders are likely to increase as well,” it said.
When it comes to the semiconductor industry, a significant increase in inventory is ongoing due to a sluggish consumer market demand and a decrease in orders from enterprise clients. “The DRAM market segment is likely to hit the bottom late next year and the NAND flash segment is likely to do so in summer next year,” it explained.
In the automotive industry, a low level of inventory attributable to chip undersupply continued for two years, but the chip shortage issue is likely to be solved next year to lead to an increase in inventory. “The fact that consumer demand is on the decline these days is likely to combine with the inventory conditions and an increase in sales promotion expenditures to lead to a decline in profit,” it said.
“In the steel industry, demand contraction related to the ongoing recession of the housing market and the economy as a whole is likely to more than offset increase in automobile and ship outputs,” it went on to say, continuing, “The biggest concerns lie in the petrochemical industry, which will face the triple whammy of energy prices likely to remain high throughout next year, demand shrinkage ongoing amid interest rate hikes, and increasing supply from China.”
Source:Business Korea
