Jungjingong Industry Analysis Report
Post-Corona Era
[Asia Economy Reporter Kim Daeseop] In the post-COVID-19 era, the growth of the non-face-to-face (untact) IT and content industries is expected to remain prominent in the second half of this year through expanded policy support and increased service demand. In contrast, the textile and fashion industry, which was directly hit in the first half of the year due to reduced consumption and global supply chain disruptions, is forecasted to have an uncertain recovery in the second half.
According to the "Post-COVID-19 Era Industry Analysis Report" published on the 10th by the Small and Medium Business Corporation, the IT industry is expected to continue growing due to the spread of untact services, policy support and institutional improvements, and investment activation. In particular, among the non-face-to-face sectors after the COVID-19 pandemic, the e-commerce industry has emerged as the biggest beneficiary, with companies such as Market Kurly and Coupang continuing their growth.
Additionally, the content industry is drawing attention to the gaming sector. Game companies posted favorable results as the number of users and usage time increased due to social distancing measures related to COVID-19. With the prolonged COVID-19 situation expected, good performance is anticipated through the second half of this year and into next year.
Unlike the IT and content industries, which are expected to sustain growth, the outlook for the textile and fashion industry is bleak in the second half. As a discretionary consumer goods sector rather than an essential one, the textile and fashion industry was directly impacted by COVID-19. The economic contraction caused by COVID-19 led to consumers’ financial deterioration and production stoppages in the global supply chain, hitting both supply and demand sides.
As a result, production, operating rates, and retail sales (clothing) in the textile and fashion industry declined, while inventories increased. Companies that fail to expand online customer bases, activate new distribution channels, and strengthen digital capabilities are expected to be eliminated from the market.
The Small and Medium Business Corporation’s report forecasted the post-COVID-19 industry outlook for 13 industries across 7 sectors. The sectors were divided into ▲ Machinery (automobiles, shipbuilding, general machinery) ▲ Metals (steel) ▲ Chemicals (refining, petrochemicals, cosmetics) ▲ Food and textile fashion ▲ ICT manufacturing (semiconductors, smartphones, displays) ▲ Pharmaceuticals and bio ▲ IT and content.
The second half industry outlook was categorized as 'Clear,' 'Partly Cloudy,' 'Cloudy,' and 'Overcast.' The results were ▲ IT and content as 'Clear' ▲ Pharmaceuticals, bio, shipbuilding, and food as 'Partly Cloudy' ▲ Refining, petrochemicals, and cosmetics as 'Cloudy' ▲ Automobiles, general machinery, steel, textile fashion, and semiconductor-smartphone-display as 'Overcast.'
Since last year, the Small and Medium Business Corporation has been publishing industry analysis reports through its Corporate Evaluation Center, composed of 14 professional examiners. This year, the reports include COVID-19 related trends and forecasts for major industrial sectors to help small and medium enterprises utilize them in their business activities.
Kim Hakdo, Director of the Small and Medium Business Corporation, stated, "Experts worldwide predict that COVID-19 will cause significant changes beyond short-term shocks, affecting politics, the economy, and generations. We aim for the Small and Medium Business Corporation’s industry analysis report to serve as a reliable beacon guiding small and medium enterprises during this period of paradigm shifts in industrial structures such as the digital transformation."
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