Samjong KPMG Analyzes Major Domestic Industry Outlook for Next Year... Semiconductor and Mobile Phones Show 'Some Positivity'

Samjong KPMG announced on the 11th that demand in certain sectors such as semiconductors and mobile phones is expected to improve slightly next year.

Through the report "2024 Domestic Major Industry Outlook," which includes observations on the domestic economy and 23 key industries, Samjong KPMG presented response strategies for companies by industry.

In 11 specific sectors including semiconductors, mobile phones, energy, utilities, and non-life insurance, it is expected that new growth engines will be discovered through new products and services, expanding market scope or actively targeting the global market, thereby generating demand and improving profitability.

The global semiconductor market is projected to grow by 13.1% in 2024, recovering from the 9.4% decline in 2023. In particular, the memory semiconductor market is expected to show a significant increase of 44.8% next year compared to the previous year, and companies are urged to establish strategies focusing on new business areas such as AI (artificial intelligence) semiconductors. The smartphone market is expected to increase by 3.8% compared to the previous year. The report suggests that smartphones equipped with on-device AI functions will be officially launched starting next year, and competition in the foldable smartphone market is expected to intensify due to the influence of Chinese mid-to-low priced foldable phones.

Domestic energy demand is expected to increase by 2.6% next year compared to the previous year, indicating a recovery trend. While increased demand in the gas power generation sector and strong government policies on renewables and nuclear power will drive total energy consumption growth, coal demand is expected to decline compared to the previous year due to global trends. The report stated, "Active consideration of next-generation nuclear power projects such as Small Modular Reactors (SMR) and diversification of gas import countries are necessary to secure energy supply stability."

The insurance industry is expected to see improved profitability for domestic non-life insurers, who have focused on selling protection insurance, with the full implementation of the new International Financial Reporting Standard (IFRS17), due to lower loss ratios and adjustments in actual loss insurance premiums. However, as automobile insurance premiums are expected to decrease, limiting profit growth, it is necessary to manage soundness such as loan delinquency in preparation for increased economic volatility, and the report emphasized the importance of exploring new avenues such as pet insurance and digital healthcare.

However, as global economic growth is predicted to be modest, 12 major domestic industries with high export impact, including display, automobile, steel, gaming, and distribution, are expected to show limited growth.

Samjong KPMG Economic Research Institute stated, "In 2024, domestic industries will face various issues such as limited global economic growth and industrial restructuring through AI expansion," and emphasized, "Domestic companies must closely monitor changes by industry along with macroeconomic trends and adopt customized strategies such as proactive responses to emerging sub-sectors, strategic portfolio diversification, and active exploration of emerging markets and channels."