Delving deeper into S. Korean exports on 55th Trade Day
- 5 years ago
Generally when a country is enjoying booming exports... there's more investment and domestic consumption.
But in South Korea, not everyone seems to be enjoying the fruits.
Yes, that's because most of the outbound shipments are related to the IT and electronics sector... which aren't labor intensive... and the link to employment is weak.
Regarding facility investment, recent data out of the Bank of Korea shows it actually dropped on-quarter in the third quarter... and I asked an expert why that might be.
"The machinery used by Korean conglomerates, which make up most of the country's facility investments, are not produced by local small-and-mid-sized companies but are imported from overseas."
To resolve the deepening divide, South Korea is trying to diversify its trade partners... expanding to India and Southeast Asia as seen in the Moon Jae-in administration's New Southern Policy... as well as opening up more trading channels with Russia.
Another is to promote investments made for the development of new industries considered crucial in the era of the Fourth Industrial Revolution... and to do that... deregulation regarding new tech is vital.
But in South Korea, not everyone seems to be enjoying the fruits.
Yes, that's because most of the outbound shipments are related to the IT and electronics sector... which aren't labor intensive... and the link to employment is weak.
Regarding facility investment, recent data out of the Bank of Korea shows it actually dropped on-quarter in the third quarter... and I asked an expert why that might be.
"The machinery used by Korean conglomerates, which make up most of the country's facility investments, are not produced by local small-and-mid-sized companies but are imported from overseas."
To resolve the deepening divide, South Korea is trying to diversify its trade partners... expanding to India and Southeast Asia as seen in the Moon Jae-in administration's New Southern Policy... as well as opening up more trading channels with Russia.
Another is to promote investments made for the development of new industries considered crucial in the era of the Fourth Industrial Revolution... and to do that... deregulation regarding new tech is vital.