Market Tends in Korean Electronics Industry

发布时间：2016年05月06日 来源：中国化学会

Jin-Nyoung Yoo, 
Director Advanced Materials Research Institute, LG Chem Research Park 
LG Chemical Ltd., Korea

The internet and digital revolution in the information and electronics industry is transforming the traditional economic paradigm. It means the structure of the global industry has been changed from its old format including electronic equipment, parts and hardwares. Now we are facing the new structure of the global information and electronics industry as a globally networked one that contains not only hardwares but the softwares, contents and infra networks. In the 21st century, the information and electronics industry can be characterized with a few aspects. Internet electronics technology makes it possible that information system, entertainment including TVs, navigation applications and mobile communication systems are globally networked. Another important characteristic is that the demands for communication equipment will be propelled by the continuing development of the information society. In addition, aworldwide demand for information processing equipments such as computers and peripherals fueled by the diffusion and expansion of the internet users will continue. 

In 2000, the information and electronics industry composition is forecast as totalvolume of 1077 billion US$. Among them, information processing (computers) market reaches 310 billion US$ followed by communications (259 billion US$), consumer appliances (189 billion US$), industrial uses (140 billion US$) etc.1 One of the remarkable changes in the area of communication is that communication infrastructureand data communications devices are showing favorable market trends but cable communications equipment and services are in surplus. The global market volume is expected to reach 1.21 trillion US$ in 2002 through the rapid devotion of digital integration and internet revolution of e-business. Figure 1 shows the world market trends in electronic industry.

In terms of growth rate for the year of 2000, electronic parts for automobiles took the lead reaching 12.8 %.Computers and communications were showing relatively high growth rates of 8.4 % and 8.0 % respectively. Consumer appliances and industrial uses, however, indicate rather low growth rates (4.8 % and 4.2 % respectively).2

TOTAL 1077 Billion $

Since receiving the IMF bailout, most Korean business corporations are actively trying to restructure themselves in order to improve their financial status and boost their competitiveness. As a result of these restructuring processes, the Korean economy is overcoming the current hardships and taking off again. In 2001, the information and electronics industry in Korea is expected to experience an economic recovery together with the Asian regions' recovery and completion of business restructuring. Future outlook will also be promising due to the favorable circumstances such as CDMA commercial service expansion in South-Eastern Asian countries, Australia, and Middle and South America, increasing demand for digital products and high value-added products.

The production of the domestic electronics industry in 2000 is expected to reach 90 billion US$ and annually about 10 % increase of growth rate is also expected. Exports estimated at the end of 2000 will amount to 61.1 billion US$: 18.7 % increase over year 1999. In view of this trend, the global electronic parts market in which Korea has emphasized for the share will also grow more than 10 % every year. The global market volume for LCDs reached about 14 billion US$ in 2000. Among them Korea shares 4.1 billion US$ including exports and domestic uses. The semiconductor market reaches 164 billion US$ in 2000, up 16% compared with 1999, and for DRAM, the market grows by 21%. Japan takes the first place in production up to 27.6 %, USA takes the second as 26.4 % share and Korea reaches the third place sharing 10.5% of world production of semiconductors.3 Due to the restructuring of semiconductor business and appearing the network multimedia and communication era, the growth of the semiconductor market can't be inhibited. Table 1 shows Korea's electronic components production including semiconductor in recent two years. Rapid progress in speed, capacity and integration will bring more restructuring in semiconductor industry.

Table 1. Electronic components production in Korea including semiconductor

In terms of technology, the development of electronic devices in 21st century will be shifted from its device-design based competition to materials based one. Technology fusion and integration are of more importance. In semiconductor industry, microelectronic materials and processing chemicals takes only less than 10 % of the manufacturing cost of the product. However, in the fields of display, for instance, the price of microelectronic materials forms more than 40 % of the total manufacturing cost. The portion is even higher for the secondary battery industry and takes up to 60 %. Because of this, partnership between the device makers and materials makers are of importance in order to take the prior occupation in the global market. 

Thanks to the economic recovery and increasing demand in the export and domestic markets, investment will expand especially emphasizing facilities expansion, R&D and replacing obsolete facilities. Accordingly, electronics industry in Korea is expected to grow continuously and focuses the high value-added products such as LCDs, computers, PCBs, semiconductors and mobile phones in a global export market. Both leading companies having highly competitive products and niche companies specializing in top-class innovative products are dominating the world market and sharing the huge profits. And only companies having world class strategic products and sustaining high profits will survive in the severe competitive global market.

* References
1. Nomura Research Institute Report 1998/1999
2. EIAK Report 1999
3. KDI Resources