Gwangju Employers Federation Analyzes Regional Mining and Manufacturing Data
In the Gwangju region, the manufacturing sector's dependence on a specific industry-automobiles-is deepening, while the decline of traditional key industries such as electronics and home appliances, which once formed a pillar of the regional economy, is accelerating.
On November 17, the Gwangju Employers Federation analyzed the latest data from Statistics Korea on the region’s mining and manufacturing sectors. According to the analysis, the number of manufacturing businesses in Gwangju stands at approximately 5,500, with about 130,000 employees, a slight increase compared to the previous year. However, the 'value added,' which reflects the actual performance of the region’s manufacturing sector, remains at around 21 trillion won, showing stagnation in the low 20 trillion won range for several years.
This trend contrasts with other metropolitan cities, where the value added in manufacturing continues to grow, indicating that the growth engine for Gwangju’s manufacturing sector is weakening.
The concentration in certain industries is particularly pronounced. The 'automobile and trailer manufacturing' sector accounts for about 45% of Gwangju’s total manufacturing output and more than 40% of its value added, effectively single-handedly supporting the region’s manufacturing economy. This structure means that Gwangju’s entire economy is highly vulnerable to the performance of the finished car industry, making it susceptible to direct impacts from recent global automotive market changes, such as delays in the transition to electric vehicles and weakening demand.
The 'electronic components, computers, visual, audio, and telecommunications equipment manufacturing' sector (including home appliances), which once drove Gwangju’s economy alongside automobiles, is experiencing a continuous decline in the number of businesses, employees, and production output. Furthermore, new growth industries have yet to show tangible results to fill the gap left by these traditional sectors. The 'artificial intelligence (AI)' and 'future mobility' industries, which Gwangju City is actively promoting, still occupy only a minor share of the overall manufacturing sector, and are not keeping pace with the decline of existing industries, according to the analysis.
Yang Jinseok, Chairman of the Gwangju Employers Federation, stated, "We must not miss the golden time for transitioning to future vehicles. To enable internal combustion engine parts manufacturers to swiftly transform into suppliers for electric and hydrogen vehicles, bold tax incentives and financial support for R&D and facility investment are needed." He also emphasized, "It is necessary to aggressively remove regulations so that the AI new industry can take root in manufacturing sites, and to support the application and commercialization of AI-based autonomous driving and smart factory solutions in actual factories."
He added, "It is also necessary to expand consulting and policy funding support for companies seeking to transition their businesses to ensure employment stability and to help revitalize shrinking traditional key industries."
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