The manufacturing industry of this year will be hauled by the IT industry such as in semiconductors.household appliances and info-communications fields. Automobiles, shipbuilding and general machinery industries are also showing improvements that may allow the manufacturing industry to be the key to the recovery of Korea’s economy. 

According to the announcement made by the Ministry of Commerce, Industry and Energy (MOCIE) about “2004 Outlook for Major Industries” on Jan. 9, the report on IT.semiconductors.automobiles.shipbuilding.steel and other major industries are continuing to grow with the increased demand and production here and abroad. Overall recovery pace are expected to be better than the previous year but still economy of both ends of the major industries will deepen and the growth rate of shipbuilding.petrochemicals.steel industries will continue to rise but at a slower pace compared to the previous year. 

* The IT, semiconductor, and home appliances industries will continue to be strong in 2004. These sectors will post strong growth with increased demand and production here and abroad. This is especially true as more and more consumers show a preference for high value-added products. The semiconductor industry is becoming active in both production and export due to the great demand of high-grade memory (DDRⅡ, Flash) and also the recovery of the world IT market. The improvement of the image of Korean products and the increase of overseas demand are having favorable influence upon exportation. 

* General machinery, automobile, heavy electric equipment/cable and shipbuilding industries will continue to grow. 

* Petrochemicals, steel, and cement will continue to rise but at a slower pace. The growth rate is expected to slow down as global steel prices maintain the same level as last year. 

* Textiles are forecasted to rebound from last year’s declining trend for reasons of the recovery of the Korean economy and increase in overseas demand. 
In addition, MOCIE is positively considering the requirements requested by the major industries such as, * adjusting the taxation standard on medium-sized automobiles (1500 -> 1600 cc) * augment of government policy fund support on increasing tax deduction on investment, industrial foundation and etc. * abolishing special taxation on general machinery * establishing a productive and cooperative labor-management * developing futuristic automobile technology * preliminary preparations for the Gaeseong industrial complex and occupancy support and other matters related with the invigoration of the Korean economy are being discussed with related organizations . 
Source: Ministry of Commerce, Industry and Energy, January 8, 2004