April 27, 2024

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Korea’s Industry Ministry said on March 4 it will seek to foster new growth engines for the country’s exports and diversify the portfolio to ease the dependency on semiconductors.

According to the ministry, chips accounted for 20.9 percent of the country’s exports in 2018, rising sharply from 12.6 percent tallied in 2016.

China, the biggest trading partner for Asia’s fourth-largest economy, accounted for 26.8 percent of outbound shipments, also rising from the 25.1 percent posted two years earlier, the ministry said.

Accordingly, the government said it is necessary to find new export products and markets to seek long-term growth and cope with uncertainties.

The government designated bio, health, secondary cells, cultural content Hallyu, consumer goods, agricultural products and overseas construction industries as the new growth engine for Korea’s exports and plans to roll out measures to foster the sectors on a long-term basis.

Korea’s exports of bio and health products especially came to US$8.1 billion in 2018, with secondary cells, which cover batteries for electric cars and mobile phones, posting outbound shipments of US$7.23 billion, the ministry said.

The ministry said the performance of the two industries is significant as the amount surpassed the exports of US$7.2 billion posted by home appliances, which are considered one of the country‘s top 13 export industries.

The government said it will continue to make efforts to maintain the growth of the two industries, including providing customized consulting to exporters and help them expand ties with overseas buyers.

The ministry also plans to lower tariffs for materials needed for producing batteries, helping related firms save some US$93.2 billion.

By Ram Garikipati and newswires (ram@heraldcorp.com)