Eight New Industries Emerge as Export Growth Engines

https://korean-machinery.com///inquiryThe eight new industries related to the 4th Industrial Revolution, such as robots and electric vehicles, are emerging as new export growth engines of Korea, while contributing to an increase in jobs.
According to the report, “Trend Analysis of Job Creation in the Eight Emerging Export Industries and Trade with China” published by the Institute for International Trade (IIT) of the Korea International Trade Association (KITA), exports of the eight emerging industries in Korea have increased from an average of US$47.8 billion in 2014 to US$73.6 billion in 2017. The share of total exports rose from 8.3% to 12.8%. In particular, exports of the eight emerging industries increased by 27.7 percent last year, creating 415,000 jobs.
The figures for employment inducement per US$ million of exports also increased considerably from 5.16 persons in 2014 to 5.63 persons in 2017. The largest employment inducement figure was recorded in the next-generation semiconductor sector, while the robot industry was found most effective in inducing employment. The employment inducement figures were the largest in the next-generation semiconductor sector (188,000), followed by nextgeneration display (8.0 million), new energy (4.5 million) and bio-health (4.3 million) in 2017. Inducement per US$ million of exports varied relatively largely ranging from 10.7 in the robot sector, 9.7 for electric cars, 9.4 for bio-health, and 8.7 for nextgeneration display in 2017.
Last year, exports of the new industries have shown outstanding results in all the eight sectors and major regions of the world except Japan.
By sectors, exports of electric vehicles (186.8%), aerospace (37.3%), robots (36.2%), next-generation displays (34.4%), next-generation semiconductors (27.1%), new energy products (23.7%), high-tech materials (15.2%), and bio-health goods (13.7%) have grown in more than double-digit figures. Among the developed countries, on the other hand, the USA (29.2%), the EU (34.6%), and Vietnam (87.8%), which are emerging as overseas production bases for Korean companies among rising countries, have increased their exports to ASEAN nations (48.5%) and India.
Exports of the eight new industries to China grew at a CAGR of 5.2% from US$ 17.4 billion in 2014 to US$ 20.3 billion in 2017. Revenues for the same period increased by an annual average of 24.6%, from US$ 3.9 billion to US$ 7.5 billion. The increase in imports outstripped the growth in exports. This reflects China’s relentless pursuit in the new industries.
Exports of new industries to China amounted to 27.6% in 2017, which was 2.8% higher compared to exports of all sectors to China (24.8%). In particular, the dependence on exports of next-generation displays (37.6%), advanced materials (36.0%) and nextgeneration semiconductors (29.8%) to China turned higher than 30%, underscoring an urgent need for market diversification.
“Nurturing the new industries requires a management strategy aimed at overseas markets that can manifest the scale-oriented economy from the earliest stages,” said Moon Byung-gi, a researcher at the IIT of KITA. “In order for the new industry to continue to grow and create employment, It is necessary to establish a system for effective cooperation and division of labor such as joint investment and technical cooperation between Korea and China along with the development of composite materials, parts and products matching with the trend of the 4th Industrial Revolution.”

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Staying Ahead of the Competition in the Robot Industry through Cooperation and Service Robots

https://korean-machinery.com///inquiryThe Korean government made a full-fledged start to advance the robot industry. According to the “New Government’s Industrial Policy Direction” announced in December last year, the Ministry of Trade, Industry and Energy (MOTIE) recently held the Intelligent Robot Industry Development Strategy Conference at the Korea Institute for Robot Industry Advancement to discuss development plans for the robot industry.
While the world’s leading companies are competitively launching high-tech robots equipped with artificial intelligence, and the market for cooperative robots design to work with humans in industrial fields, is expected to grow rapidly from US$200 million in 2016 to JPY$ 3.24 billion in 2022. The United States and Japan invested US$22.5 million and JP¥ 29.41 billion in 2016, respectively. With the growing demand for service robots to improve the quality of life due to the increase of the elderly population and the demand for personalized service, the International Federation of Robotics (IFR) expects an average annual growth rate of 10% with US$ 14.9 billion in 2020.
On the other hand, the growth of the Korean robot industry is centered on large companies manufacturing automobiles and electronic appliances. This resulted in more than three times the difference in manufacture robot production with KRW 2.67 trillion and service robot production with KRW 770.4 billion in 2016, thus posing a concern that it will be fixed as manufactureroriented.
Therefore, the Ministry of Trade, Industry and Energy (MOTIE) announced a plan in the conference to create leading markets and support growth centered on cooperative and service robots, which are expected to lead the global market in the future.
First, the companies equipped with smart factory construction and root companies will be provided with cooperative robots to improve the productivity of small and medium-sized manufacturers suffering from the burden with minimum wage and manpower shortage. In addition, the commercialization of service robots is planned for the five promising areas including smart home, medical, rehabilitation, disaster and safety, unmanned transportation, and agricultural robots.
In order to strengthen the innovation capability, MOTIE will concentrate its support on research and development of the three major robot parts including operation, sensing, and control, for the robot-mounted platform and the CNC control machine standard model, with a plan to specialize the research and support organizations by dividing them into three regions. This growth support measures include preparing cooperative robots safety guidelines, improving regulations that may impede the proliferation of robots, and expanding new jobs related to robot service.
Moon Seung-Wook, Director-General of MOTIE, urges the industry, academia, and research field to work together to contribute to the global competitiveness of the robot industry and to the creation of jobs for youths. The government also emphasized efforts to create tangible outcome through speedy promotion of development strategy regarding the intelligent robot industry.

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