Korea’s trade surplus reaches $100bn in the components and materials industry

February 23, 2015 by Leave a Comment

Korea achieved a trade surplus in the components and materials industry topping the $100 billion mark for the first time in its history. This means the components and materials industry grew in qualitative and quantitative terms, serving as a cornerstone for the manufacturing industry, despite the fact that the rise in exports of components and materials is partly attributable to the relocation of the local manufacturing bases to overseas.

Korea’s-trade-surplus The Ministry of Trade Industry & Energy recently reported that exports of the sector posted $276 billion while imports reached $168.1 billion, putting the sector’s trade surplus at $107.9 billion to exceed $100 billion for the first time.

The nation’s components and materials industry accomplished $100 billion worth of trade surplus in 17 years since 1997 when the trade in the industry turned to surplus for the first time. Trade surplus in components and materials amounts to 2.3 times higher than the nation’s total trade account of $47.4 billion last year.

Korea’s-trade-surplus_1 Last year, exports of components increased 5.9 percent from a year ago to $188 billion backed by the recovery of demand industry in major advanced nations. Exports of materials reached $88.1 billion, up 3.0 percent from 2013, as the demand for non-metallic minerals and primary metal products picked up.

Such impressive growth of the industry represents basics to the domestic industry has been improved. And it is also a noticeable fact that the local companies’ relocation of their production facility to China and Southeast Asia is another important factor leading the industry’s growth.

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Korea records USD 33.7 billion in contracts for overseas plants in the 1st half of 2014

August 14, 2014 by Leave a Comment

The Ministry of Trade, Industry and Energy has recently announced that Korea had recorded a historichigh contract amount for overseas plants in the 1st half of 2014, amounting to USD 33.7 billion.

It is even more meaningful that this achievement was reached considering the numerous challenges, such as political uncertainty in Middle Eastern markets including Iraq and the decline in contracts for offshore plants.

Contracts in the 1st half of 2014 grew by 20.2% yearon-year (from USD 28 billion), thanks to robust contracts for oil and gas plants and healthy performance in traditional markets, including the
Middle East, Africa and the Americas.

More notably, contracts in Africa as a new plant market reached a historic high in the 1st half of 2014 (USD 5.6 billion), signaling steady growth in the African market. In addition, the growth in contracts won through consortiums of domestic businesses is a noteworthy trend.

By region, contracts in the Middle East, Africa and the Americas increased significantly compared to the same period in the previous year, thanks to robust contracts for large-scale oil, gas and power projects, but contracts in the EU and in Asia decreased due to declines in contracts for offshore plants and industrial facility projects.

In terms of facilities, contracts for power generation, oil refinery and petrochemical projects led the growth in contract amount for the 1st half, accounting for 87% of the total contract amount, while contracts for offshore plants, industrial facilities, materials and equipment

It is expected that contracts for large-scale projects will continue to be secured in the 2nd half of 2014, thanks to expectations of a global economic recovery and industrial infrastructure building in emerging countries, but there are factors that may decrease contracts won due to extended difficulties in the Middle East.

Meanwhile, the Ministry of Trade, Industry and Energy, Korea Plant Industries Association and the Korea Association of Machinery Industry jointly organized “the Forum for Plant EPC Materials and Equipment Cooperation” to discuss measures to reinforce the competitiveness of domestic materials and equipment.

 
 
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S. Korea- Turkey FTA records one-year passage of effectuation with 31% trade increase

June 19, 2014 by Leave a Comment

According to the Korea Customs Service, the trade volume between S. Korea and Turkey has increased by almost 31 percent within one year after the S. Korea- Turkey FTA (Free Trade Agreement) came into effect.

The trade volume between the two nations is estimated to have increased to $6.76 billion, a volume of 30.8% up since May 1, last year, compared to the comparable previous period (estimated $5.17billion). This record outnumbers the average trade increase rate (1.7%) with all trade partners in the same period.

FTA-news The agency said the export to Turkey came to $6.06 billion, up 33.6% than last year while import from the nation reached at $0.7 billion (up 11.1%), consequently S. Korea’s trade surplus made at $5.36 billion(up 37.2% than last year).

The agency analyzed that the export growth rate (35.0%) of beneficiary items from the pact surpassed that(30.4%)of unbeneficial items from it and so the pact contributed to the nation’s trade
growth to the Turkey.

While the import of unbeneficial items by the FTA from Turkey significantly increased to $200 mil. from $60 mil in the last year, the import of beneficiary items from the partner country rather
decreased (12.3%).

The export of synthetic resins, steels, petrochemical raw materials, TV parts, textiles and clothing products, for which tariffs were eliminated upon effectuation of FTA, is founded to have
noticeably increased compared to the same period of the previous year.

The import of machinery parts (valves, bearings), transformers, and clothing also increased. Korean export companies’ usage rate of the FTA with the Turkey recorded 71.4%, a number surpassing that (70.2%) of FTA with the USA.

 
 
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