Excluding semiconductors, exports show negative growth... ”Improvement of the economy” is too hasty - Korean media column

South Korea's exports are expected to exceed $700 billion (approximately 109.68 trillion yen) this year for the first time in history. Cumulative exports through November are already at $640.2 billion (approximately 100.3 trillion yen),
This is a 2.9 percentage point increase from the previous year. This is a valuable achievement achieved amid growing protectionism, but there are concerns about the other side of the story. This is because the majority of growth is due to "semiconductors."
Excluding semiconductors, the cumulative export value from January to November actually fell by 1.5 percentage points, and many traditional industries, such as general machinery, steel, petrochemicals, and secondary batteries, continue to stagnate.
This appears to expose the country's gradually weakening export structure. It is good to see that semiconductors are supporting the Korean economy through their export effects, but excessive dependence on them is a cause for concern.
Demand and prices for semiconductors fluctuate rapidly due to cycles in the global information and communications industry and trends in AI investment. If a recession occurs, it will have a major impact on the entire economy, including not only exports but also employment and finances.
The general public will inevitably be hit hard at the same time. In addition, the export structure centered on large corporations is also a weakness. Large corporations have recently been increasing production overseas in order to secure global competitiveness.
This will cause the domestic parts and intermediate materials industry to shrink, and the balance and vitality of the industrial ecosystem will inevitably decline. Korea's export environment is currently more severe than ever.
The rise of rivals and the onslaught of low prices have weakened export companies' competitiveness, and with the addition of US tariffs, companies are facing enormous hardship.
In the export-oriented structure of the Korean economy, what is urgently needed is to fundamentally strengthen the entire industry. Traditional industries should be improved to adapt to the AI era, and new industries should be developed.
We must quickly create an environment in which businesses can grow. Improved working conditions, deregulation, and policy support are also essential. However, businesses currently lack confidence in the government.
It is important to be trusted by the industry.