Production Scaled at 454 Trillion Won in 2013
Korean production in five major machinery sectors, i.e, general machinery, precision machinery, electric machinery, fabricated metalwork and transportation machinery, except shipbuilding, is expected to reach 454 trillion won in 2013, up 5.1% year-on-year, according to the Korea Association of Machinery Industry (KOAMI).
KOAMI also projected exports at US$194.6 billion (up 8.9%) and imports at US$104.7 billion (up 9.0%) for 2013, meaning that the nation would achieve a trade surplus of US$89.9 billion.
In its '2012 Machinery Industry Trends and Prospects for 2013' released on Dec. 28 last year, the association estimated that in 2012, general machinery production, exports, imports and trade surplus would post 112.9 trillion won, US$47.6 billion, US$38.3 billion and US$9.3 billion, respectively.
The association forecast that in 2013, export profitability may worsen due to sharp declines in the won-U.S. dollar exchange rate, etc. and that domestic production would shrink.
In the second half of the year, however, the industry is projected to recover slightly thanks to the Chinese government's economic stimulus policy and recovery of U.S. housing and construction investments.
In 2013, production of machine tools is expected to brisk, while production of construction & mining machinery, molds and heavy electrical machinery are projected to maintain 2012 levels. Exports of machine tools, molds and heavy electrical machinery are likely to post good performances. Meanwhile, business conditions for textile machinery and bearings are feared to worsen in 2013.