Korea Employers Federation: "Korea's 6 Major Advanced Industry Export Market Share Down 25.5% in 4 Years"

An analysis revealed that South Korea's export market share in six major advanced industries has decreased by about 25% over the past four years.

The Korea Employers Federation (KEF) announced a report titled 'Analysis of Export Market Share of Six Major Advanced Strategic Industries' on the 21st, containing these findings.

According to the report, South Korea's export market share in the six major national advanced strategic industries fell from 8.4% in 2018 to 6.5% in 2022, a decline of 25.5%. The six major national advanced strategic industries refer to semiconductors, displays, secondary batteries, future cars, bio, and robotics, as mentioned in the government's 'National Advanced Industry Development Strategy' announced last March.

KEF explained that while applying the general rate of change formula results in a decline rate of 22.6%, using the 'log difference' method yields a decline rate of 25.5%.

According to KEF, South Korea's total export value of the six major advanced industries in 2022 was $186 billion, a 1.2% decrease compared to $188.4 billion in 2018. The proportion of exports from the six major advanced industries in South Korea's total industrial exports also decreased from 31.1% to 27.2% during the same period.

In particular, the export market share dropped by 25.5%, a larger decline than that of competing countries such as China (-2.7%) and the United States (-1.3%). Taiwan (31.8%) and Germany (4.6%) saw increases in their export market shares.

Accordingly, in the 2022 ranking of export market shares for the six major advanced industries, South Korea ranked 5th, following China (14.1%), Germany (8.3%), Taiwan (8.1%), and the United States (7.6%). This is three positions lower compared to 2018, when South Korea held 2nd place.

KEF explained that although the total global exports of the six major advanced industries increased by 24.2% from 2018 to 2022, South Korea's exports in these industries decreased by 1.2%, ultimately leading to a decline in export market share.

Hahm Sang-woo, head of KEF's Economic Research Department, stated, "As global technological competition intensifies, the export market share of South Korea's advanced industries, including semiconductors, is weakening," and added, "More proactive measures must be implemented to enhance the nation's growth potential."