March 1995 No. 1

Industry

Petrochemical Investment Up

In the first half of 1994, the rate of increase of petrochemical product exports was down to 5.1% over the same period of 1993 because of the drop in oversupply resulting from domestic demand growth and voluntary reductions in production. The export of synthetic resins constituted the majority of total exports, 1.1 million tons a 5.1% increase. Synthetic rubbers realized a 29.7% export increase with 57.6 thousand tons. Synthetic fiber raw materials, however, experienced a drop in exports, down 15.9% to 43.4 thousand tons.

For more information, call the Basic Chemicals Industry Division of MOTIE at (02) 503-9466.

Semiconductors Lead Korean Electronics Industry

A closer look at industrial development in Korea, however, shows that while massive investment has given the appearance of an industrialized economy on the surface, structural problems and contradictions remain. However, an analysis of the domestic semiconductor industry shows that these problems can be satisfactorily addressed.

Since the demand for ASIC and other semiconductor products is expected to increase in the future, Korean companies should first secure competitiveness in the DRAM and other memory markets, then eventually concentrate on the development on non-memory product lines using technical know-how accumulated from memory product development. Individual companies should focus on the diversification of product portfolios, to minimize investment risk, and expand the scope of R&D activity.

KOREA FOREIGN TRADE ASSOCIATION NEWSLETER