Outlook for S. Korean key sectors' exports dour: report
Exports by Korea's key industrial sectors are likely to lose steam during the remainder of the year due to slumping major economies and slowing emerging economies, a report showed Tuesday.
The report by the Federation of Korean Industries (FKI) warned shipbuilding, steelmaking and petrochemical industries could see their exports lapse into a serious downturn in the second half, buffeted by unfavorable global economic conditions.
The shipbuilding sector is feared to see exports shrink 28 percent on-year in the second half of the year, as new orders are likely to drop in the face of the global economic slump, according to the report. The segment is expected to recover starting from 2014 on the back of a global economic rebound.
Exports by the steel industry are expected to fall 14 percent on-year in the second half following a 7.9-percent decline in the first half, as demand from shipbuilding and other sectors remains sluggish.
Overseas shipment of petrochemical products is also likely to remain weak in the face of slowdowns in major economies such as China, it said.
The FKI, the lobby for family-controlled conglomerates, said exports of electronic goods may gain 5.2 percent on-year in the second half, however, on the back of improvements in the semiconductor and display panel industries.(Yonhap)