Boosted by strong domestic and overseas sales, industrial output in March surged 18.4 percent over the same month of last year. Booming overseas shipments of semiconductors, office and computer-related equipment, as well as domestic sales of primary metal, automobiles and audio, video and communications equipment contributed to the rise in production. The heavy industry sector registered an increase of 23.1 percent from the corresponding period of last year, due to rises in almost all divisions, notably office and computer-related products which underwent a 61.4 percent growth. The only exception was non-metal mining products in which output contracted by 6.6 percent. Output from the light industry sector recorded a 4.9 percent increase from a year earlier, as growth occurred in most divisions such as wood and wood products (up 40.6 percent), and furniture and other manufacturing (up 21.6 percent), despite decreases in the areas of cigarettes (off 4.3 percent), rubber, bags and shoes (off 11.1 percent) and printing and publications (off 10.4 percent). Forwarding Increases 21.1 Pct from a Year Earlier Producer shipments in March rose 5.9 percent on a year-to-year basis, due to growth in most sectors particularly automobiles, audio-video and communication equipment and primary metals. Forwarding for export purposes also grew, registering an increase of 28.2 percent over the same period, boosted by brisk shipments of semiconductors and computer-related products, and despite lackluster forwarding of primary metal and oil refinery products. In the heavy and chemical industry sector, automobiles and trailers (up 40.9 percent), audio-video and communications equipment (up 58.2 percent) and computer-related goods (up 54.6 percent) recorded remarkable rates of growth, while shipments of non-metal mining goods shrank by 7.8 percent. In the light industry sector, shipments by the wood and wood products (up 39.5 percent), furniture and other manufacturing (up 23.1 percent) and the food and beverage industries (up 7.8 percent) were up markedly; while those from printing and publications businesses (off 9.1 percent), clothing and fur products (off 11.8 percent) and cigarette producers (off 18.4 percent) slumped. Inventories Decline 18.7 Pct in March Producer inventories in March decreased 18.7 percent from a year earlier, amid a steady decline in almost all areas with the exception of cigarette and oil refinery products, which registered gains of 24.7 and 2.1 percent, respectively. Inventories of non-metal mining products (off 25.9 percent), machinery equipment (off 26.9 percent) and automobiles (off 30.4 percent) underwent the sharpest declines. Average Operational Rate up 4.9 Pct The average operational rate in the manufacturing sector rose 4.9 percent in March from a month earlier, mainly due to gains in the areas of other transport equipment, textile and machinery equipment. The overall rate for March of 74.6 percent represented the first breakthrough of the 70 percent level since September of last year. The operational rate index for the month stood 11 percentage points higher than the corresponding month of last year as a result mainly of increases in capacity utilization in the automobile, food and beverage and other transport equipment industries. By industry, the operational rate index increased by 31 percent for automobiles, 28.5 percent for other transport equipment, and 38.6 percent for computer-related products. However, rates in other manufacturing (off 5.5 percent) and among producers of non-metal mining goods (off 5.1 percent), and semiconductors (up 0.3 percent) either fell or remained constant. On a month-to-month basis, rates among producers of other transport equipment (up 21.8 percent), and textiles (up 9 percent) were up sharply while non-metal mining goods (off 4.9 percent), optical machinery and watches (off 5.1 percent) and computer-related goods (off 0.1 percent) posted decreases. Meanwhile, overall production capacity surged by 4.8 percent from a year earlier, and by 0.6 percent from a month earlier, respectively.
Domestic Capital Goods Orders Increases 15.8 Pct in March Orders received by domestic machinery makers in March amounted
to 1,760.4 billion won, up 15.8 percent from a year earlier, in
sharp comparison to the same month of last year which registered
a massive falloff of 50.1 percent. Orders from the public sector
recorded a huge 45.2 percent growth on a year-to-year basis,
due in part to a rise in orders from its communications sector.
The value of private sector orders issuance registered growth
of 12.3 percent from a year earlier, boosted by an increase in orders
for communications and logistical equipment. March's Construction Orders off 51.1 Pct Orders received by the nation's 292 major construction enterprises in March plummeted by 51.1 percent from the same month of last year to 2.3 trillion won, but was up 30.7 percent on February's totals. Public sector orders nosedived overall by 70.2 percent on a year-to-year basis, as demand for road and bridge (off 88.1 percent), and railroad (off 85.3 percent) construction all but collapsed. By comparison, private sector orders slid by only 4.2 percent, buoyed by a sharp rise in orders for factories and warehouses (up 154.2 percent), and in the face of a decrease in orders for housing (off 8.4 percent).
Wholesale and Retail Sales up 8.2 Pct in March Wholesale and retail sales grew for their third consecutive month in March, and up 8.2 percent on a year-to-year basis. Resurgent sales of automobiles and in the wholesale sector generally contributed to an overall positive picture. Wholesale sales were up 8.5 percent from the corresponding period of last year, boosted by the continual rise in sales of oil and coal products (up 13 percent) and communications and electrical machinery (up 64.6 percent). On the other hand, sales of fruit and vegetables (off 18.2 percent), and home appliances, furniture and similar products (off 5 percent) ran counter to the trend. Retail sales were up 5.4 percent on a year earlier. Sales of other general retail merchandise (35.5 percent), clothing and accessories (up 14.3 percent) continued their upward growth patterns established earlier this year, while those of food and beverages (off 9 percent) and shoes and bags (off 12 percent) slid. Shipments of consumer goods for the domestic market increased 19 percent amid continual growth in the demand for durables such as mobile phones and automobiles. Forwarding of durable goods rose overall by 37.7 percent, buoyed by high sales of cellular phones (up 54.9 percent) and automobiles (86 percent). Significant exceptions were shipments of air conditioners (off 75.7 percent) and electric fans (off 59.3 percent). Shipments of non-durable goods rose marginally by 2.2 percent. Prime movers in this area were kerosene (up 73 percent), and cosmetics (up 32 percent), while forwarding of books (off 19.3 percent), processed seaweed (off 59.1 percent), and cigarettes (off 17.4 percent) showed marked erosion.
Exports Slide 3.6 Pct in April; Rate of Decline Slows from 1st Qtr Exports fell 3.6 percent to $11.63 billion in April, compared to the same month in 1998. They were also down 2.7 percent on February's total due to the continual worldwide economic downturn and a steady appreciation of Korean won against the U.S. dollar. On a yearly comparison, the falloff in export volume is due to a combination of the relatively large amounts of outbound shipments in the same month of last year and a loss of one clearance day this year. However, the figures point to a levelling off in the rate of decline, exports having slowed by 5.2 percent in the entire first quarter period against a 5.9 decrease registered in the same period of last year. The arrival of letters of credit for exports fell to $5.27 billion, down 5.7 percent overall from a year earlier, but showing renewed strength in certain areas, notably, tires and tubes (up 124.3 percent), oil products (up 70.2 percent) and machinery (up 62.3 percent). Light industry exports amounted to $2.58 billion, a decrease of 15.6 percent from the same period last year, while those of heavy and chemical goods sector rose 4.5 percent to $8.35 billion. In the light industry sector, shipments of clothing increased 5.3 percent while those of textile yarn and fabric goods declined 22.9 and 13.8 percent, respectively. In the heavy and chemical industry sector, exports of steel and metal products and chemical manufacturing goods decreased 20 percent and 11.7 percent, respectively, while those of semiconductors and information and communication equipment increased 10.1 percent and 50.2 percent, respectively, from a year earlier.
Imports Increase 10.5 Pct in April from a Year Earlier Imports in April increased to $9.07 billion, up 10.5 percent
from a year earlier, boosted by a rise in industrial output
and the purchase of capital and consumer goods amid a steady recovery
in domestic consumption. Consumer goods imports increased to $1.21 billion, up 8.9 percent from a year earlier, encouraged by the rise in purchase of end-use consumer goods (up 58.6 percent) and durable goods (up 4.7 percent), despite a falloff in imports of food grain (off 14.1 percent). Imports of raw material rose to $4.16 billion, up 2.5 percent from a year earlier, boosted by an influx of light industry material (up 9.6 percent) and chemical engineering goods (up 8.9 percent). Imports of crude oil, however, decreased 10 percent over the same period. Capital goods imports rose 26 percent to $3.93 billion, as inbound shipments of information and communication equipment and semiconductors surged.
Exports of electronic products rose to $3,241 million in January, up 15.6Exports of electronic goods in March rose 20.3 percent on a year earlier to hit $4,016 million, as overseas shipments of industrial electronic products, electronic components and electronic home appliances boomed. Overall exports from this sector in the entire first quarter rose to $10,770 million, an increase 15.9 percent from the same period of last year. Outbound shipments of industrial electronic products soared 34 percent to reach $1,008 million, due to strong performances by wired and wireless communications equipment and computers. Mobile telephone exports have increased rapidly of late, in the wake of an image-building drive on behalf of domestic products in world markets. Exports of wired communications equipment continued to increase, prompted mainly by demand from Europe, Ukraine, Hong Kong and Australia. Exports of computers, mainly lower-end market goods, began to increase. Exports of electronic parts amounted to $2,437 million, an increase of 19.6 percent over the same month of last year. A major part of the increase was accounted for by strong sales of semiconductors which recorded a 10.1 percent increase. Overseas sales of semiconductors were underpinned by the expanded sales of high-function computers. Exports of electrical home appliances continued to decrease for the second consecutive month since January, but marked an increase of 3.9 percent over March of 1998, as sales of air conditioners, cassette radios and MP3 products recovered and those of audio-video products remained weak.
(US$ million , % change from previous month)
The automobile industry underwent a conspicuous recovery in terms of domestic sales and production in March, despite continued weakness in its overseas markets. Car production increased 36.3 percent from a year earlier, as domestic sales boomed and inventories shrank. Total sales amounted to 214,000 units, the highest since the nation entered the International Monetary Fund's (IMF) financial restructuring program. Domestic sales soared to 92,000 units, up 48.8 percent from the corresponding month of last year, a direct result of a recovery in local business activity and consumer sentiment, plus various sales incentives and promotion of new models. Sales of passenger cars increased to 92,000 units, up 48.8 percent from a year earlier, led by booming sales of small-sized compact cars and new models. Sales of mid-to-large sized cars also underwent a steady recovery in sales. Sales of commercial vehicles surged 54.9 percent from a year earlier. Sales of buses, due to aggressive marketing of minibuses, rose 75.4 percent while those of trucks soared 45.6 percent. Automobile exports, however, contracted to 111,000 units, down 3.4 percent on March of 1998, impacted by torpid sales in developing countries and the downward adjustment of inventories in other markets, despite relatively booming sales in the United States. By region, sales in the North America increased 29.5 percent from the corresponding month of last year, a result of aggressive sales tactics on the part of domestic car builders and efforts to enhance the image and quality of locally made products. Car exports to Western European soared 11.2 percent, amid buoyant sales of compact cars. Exports to Eastern Europe and Latin America, on the other hand decreased 43.1 and 43.3 percent, respectively. Sales of domestic cars to the rest of Asia recovered slightly, boosted by a rise in sales of passenger cars in Malaysia.
(Cars, % change from previous month)
Textile exports were down again in March, falling 9.2 percent
from a year earlier as economic slowdown continued to cripple demand
in China and Hong Kong, the main export markets for Korean yarn
and fabric goods. By item, exports of textile material fell to $57
million, down 31.3 percent from a year earlier as demand in the
Chinese market continued to wane. Exports of textile
yarn also fell, declining 22.7 percent on the year to $126 million
as exports of the major export item in this category, polyester,
continued to weaken. Exports of textile end-products, on the other
hand, surged to $429 million, up 5.7 percent on a year-to-year
basis as sales in the United States, Japan and the European Union
continued their upswing.
Orders received by domestic machinery manufacturers increased 15.8 percent in March over the corresponding month of last year. First quarter orders rose 16.9 percent from the same period of last year. The value of public sector orders grew by 45.2 percent, due chiefly to a rise in orders from the manufacturing area (58 percent). Private sector orders also upticked sharply, rising by 12.3 percent on the crest of a wave of demand for communications equipment and transportation machinery, and despite continued weak order issuance from the shipbuilding sector. The recovery in machinery orders was interpreted as heralding a full-fledged recovery in the domestic economy. General machinery production in March increased 1.7 percent over the same month of last year, after experiencing contractions in the first two months of this year. By item, production of construction and mining, metal manufacturing and air-conditioning machinery continued its increase in March, while that of wood-processing, textile, and rubber and plastic machinery remained torpid. Production from this sector in the entire first quarter dwindled 9 percent from the same period of last year. Exports of general machinery amounted to $824 million, up 0.1 percent from a year earlier, due mainly to strong sales in the European Union. Imports decreased 3.4 percent to $786 million, edged by the decline in purchases from the European Union in general and Germany in particular.
(US$ million, % change from previous month)
Production of crude steel products in March increased to 3,473,000 M/T, due to a rise in domestic demand and the number of operational dates. Production of revolving furnace steel goods climbed to 1,415,000 M/T, up 10.8 percent from a month earlier while that of electric furnace products rose to 1,415,000 M/T, up 41.5 percent on a month-to-month basis. As of the end of March, cumulative production for the year was
off 4.9 percent in comparison to the same period last year.
The decrease reflects the move by industry members to reduce their
production to meet domestic demand, which has yet to recover the
levels achieved before the era of IMF financial control of the economy. Exports of steel materials in March sank 31.1 percent on a yearly comparison to $587 million. Despite a general decline in most areas, exports of stainless hot-rolled steel boards rose to $22 million in March, up 73.7 percent from the same month of last year, while that of electric zinc-coated steel boards increased to $2 million, a 7.9 percent increase over the corresponding period of last year.
(1,000 M/T, US$ million, % change from previous month)
The petrochemical industry achieved an increase in output for the third straight month running in March, buoyed by expanded forwarding for the domestic market and exports. Manufacturers of the three major industry items of synthetic resin, material and rubber, operated at 88 percent of capacity, almost the same rate of utilization as in March of 1998. Due to newly-installed production lines coming on stream, industry output of the three major products increased 4 percent on a year-to-year comparison. Forwarding for the domestic market also increased for the third consecutive month in March, reaching a total of 640,000 tons. The advance reflects the recovery in domestic client industries, particularly autos and synthetic material processing, and represents a slight increase from 1997's pre-crisis monthly average of 634,000 tons. Petrochemical exports also increased, rising by 14.6 percent on a yearly comparison, stimulated by the resurgence in the production of synthetic resin and synthetic textile material. However, the rate of increase was lower than in the same month of last year. Despite the growth in exports, shipments in value terms contracted 11.8 percent in comparison with the same month of last year, due to a steady erosion of international market prices.
Orders received by the nation's major shipbuilders amounted to 130,000 gross tons for 13 ships, down 72.2 percent from a year earlier, impacted by deteriorating conditions in the global shipbuilding market and the fact ultra large-sized oil carrier projects have been put on hold. All orders in March were for small-sized cargo carriers. Shipbuilding performance, boosted by improved labor-management relations and enhanced productivity, increased 52.2 percent to reach 889,000 gross tons for 16 ships in March. The remaining orders on shipbuilders's books as of the end of March represented amounted to 19,224,000 G/T for 309 vessels, up 9 percent from the same period of last year, sufficient to provide Korean yards with work for the next two years.
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