Lecture VIISouth Korea’s Major Industries

Automobile IndustryLecture 7: South Korea’s Major Industries

The first Korean produced automobile in 1960s

Ulsan Hyundai Motor Plant

Automobile Industry

• Huge inter-industry relation:

steel, machinery, material, IT, BT, ET, ET, and so on.

• Representative capital intensive industry

• A new model’s R&D cost amounts to 300 Billion won

• The crucial industry that leads S. Korea’s economic growth

in 21st century

The first independently designed automobile: PONY

Forward and Backward Effects of Auto Industry

Rear Industry

Front Industry

Transport Industry Distribution & Maintenance Industry

Construction, Oil, and Finance Industry

Material Industry Machinery Industry

Global Automobile Industry

2002 2003 2004 2005 2006 2007증감률

'07 '02~'07

Toyota 6,535 7,053 7,811 8,502 9,289 9,716 4.6 48.7

GM 9,063 9,288 9,428 9,475 9,601 9,615 0.1 6.1

Ford 7,941 7,822 7,878 7,812 7,728 7,823 1.2 -1.5

VW 5,063 5,113 5,131 5,250 5,926 6,540 10.4 29.2

Renault/Nissan

5,060 5,381 5,728 6,020 5,611 5,914 5.4 16.9

Hyundai 2,757 2,868 3,311 3,716 3,982 4,269 7.2 54.8

Honda 2,916 2,971 3,179 3,409 3,631 3,914 7.8 34.2

PSA 3,101 3,090 3,081 3,084 3,103 3,232 4.2 4.2

Chrysler 2,792 2,603 2,708 2,797 2,577 2,569 -0.3 -8.0

단위: 천대, %

자료: Fourin

Thousand, %

growth

Automobile Industry

• 11.8% of Manufacturing, 13.4% of EX

• Huge job creation industry: 9.1% of manufacturing employment

• The largest single EX item: $ 49.7 Billion EX

Contribution of Auto Industry(2006)

Production(Billion Won)

Value Added(Billion Won)

Employment(thousand)

EX(Million Dollar)

Trade Balance(Million Dollar)

Investment(100

Million Won)

Auto Industry 107712.0 35842.0 264.0 49720.0

42553.0

58581.0

Share in Manufacturing

11.8 11.0 9.1 13.4 12.3

Source: Major Industry Data

Automobile Industry

• Large effect on production inducement industry:

auto (2.5), elec (1.7), shipbuilding (2.0)

• Employees in auto related region:

154 million → 10.4% of total employment

• Rear Industry:

Materials and component, steel, plastic industries are highly related

• Front Industry:

Auto, service, machinery industries are highly related

Automobile Industry

• Position in global mkt as of 2007:

production 5.6% 5th largest producer, EX 284 million cars.

• More than 1 million cars are produced in foreign located plants

from 2007

• The quality of product is greatly improved recently.

• Export region:

North America (29.3%), Western Europe (19.3%),

Eastern Europe (15.7%), Middle East (11.6%),

South America (10.6%)

Location of Korean Auto Industry

Entering Phase

GrowthPhase

MaturedPhase

DecliningPhase

Core Competitiveness

High

LowChina

Korea

Mexica

Brazil

Japan US

France

Spain

UK

Germany

Location of Korean Auto Manufacturers

350

Good Initial Quality + Bad

Durability

Bad Initial Quality + Bad

Durability300

250

200

150

Good Initial Quality + Good

Durability

Bad Initial Quality + Good

Durability100

80 90 10 110 120 130 140 150 160 170

VW

Chrysler

BMW

GM

Audi

Kia

VolvoHyundai

Toyota

M. Benz

HondaLexus

Industry Average

Industry Average

Source: J. D. Power

Automobile Industry

• Strong Points

- P competitiveness against developed countries

- Top notch level IT infra → Intelligent auto competitiveness

- Diversified mkt experiences

• Weak Points

- Not competitive component manufacturers

- Not strong brand power

- Opposing labor-mgmt

Automobile Industry

• Visions

- 2015’s domestic prod: 5.2 million and foreign prod: 2.4 million

- Global mkt share: 11% ← 6.7% (2005)

- 2015’s EX: $ 58 Billion

2015’s Expected Contribution of Auto Industry

2005 2015

Automobile Production (Domestic)370

ten-thousand520

ten-thousand

Automobile Production (Foreign)66

ten-thousand240

ten-thousand

Global Market Share 6.70% 11%

100th largest part company 4 14

Automobile EX (including parts)

37.9 Billion dollar 58.0 Billion dollar

Parts EX 8.4 Billion dollar 16.0 Billion dollar

Employment24

ten-thousand28

ten-thousand

Dept. of Finance and Economy

Global Automobile Manufacturers (2016)

• Toyota 11.5 million

• VW 9.9 million

• GM million

• Nissan-Renault 8.2 million

• Hyundai-Kia 7.8 million

• FORD 6.6 million

• Shanghai 6.0 million

Communication Device IndustryLecture 7: South Korea’s Major Industries

World famous Korean Cellulars

Communication Device Industry

• A crucial industry that leads establishment of advanced information

oriented society

• Various ripple effects on mobile contents, software, computer,

display, semiconductor, and etc.

• Huge early stage investment, advanced tech, huge R&D, well

trained workforce needed

Development of Network

Digital Multimedia Service Ubiquitous

2GVoice

IS95B/GPRS

(154kbps)

3GVoice + Data

WCDMA/HSDPA(2Mbps/14Mbps)

3.5GVoice + Data

+ InternetWiBro/WIMax

(1~30Mbps)

4G+USNOFDM

(100Mbps)

Past Now To Be

CameraMP3

Camcorder

Digital TVPMP

Game Player

PCProjector

PrinterScanner

Health-Care….

+ + +All in One

Size of Communication Device Market

1995 2001 2003 2005 2006 2007 2008(E) 2009(E)

MarketSize

158,814 282,259 242,181 292,350 314,853 341,277 354,223 368,653

(0.3) (-10.7) (6.9) (6.5) (4.8) (8.4) (3.8) (4.0)

Source: Reed Electronics Research, Yearbook of World Electronics Data, ( ) indicates growth against previous year

Million dollar, %

Major Countries’ Communication Device Production

• Infra euip: 37%, Corp network: 15%, Cellular: 40%

1995 2000 2005 2006 2007(E) 2008(E)

US 39.8 37.5 25.8 25.5 24.8 24.1

Japan 17.0 14.0 11.1 10.2 9.5 8.3

China 1.9 3.8 15.6 17.4 19.7 22.1

Korea 2.1 5.1 9.0 9.0 8.8 7.3

Germany 6.1 4.2 4.9 4.7 4.4 4.2

Reed Electronics Research, Yearbook of World Electronics Data

unit : %

Global Cellular Phone Market

20062007 2008 2009

1Q 2Q 3Q 4Q all 1Q 2Q 3Q 4Q all 1Q 2Q 3Q

Nokia 34.7 36.9 38.9 38.9 40.6 38.9 40.9 41.0 38.9 38.4 39.8 38.1 37.8 37.4

Samsung 11.3 14.1 14.4 14.8 14.1 14.4 16.4 15.4 17.1 17.9 16.7 18.7 19.2 20.7

LG 6.4 6.4 7.4 7.6 7.2 7.2 8.6 9.3 8.4 8.7 8.6 9.2 10.9 10.9

Motorola 21.7 18.4 13.7 12.9 12.4 14.2 9.7 9.5 8.4 6.4 8.5 6.0 5.5 4.9

Sony-Ericson

7.5 8.8 9.6 9.0 9.4 9.2 7.9 8.2 8.5 8.2 8.2 5.9 5.1 4.7

source : SA.

unit: %

Communication Device Industry

• As of 2008, CDI forms 5% of in total

• Number of firms in CDI forms 2.8% of total firms (or 920 firms)

• CDI‘s EX is $30.9Billion in 2009 (93% cellular phone)

Samsung Kumi Plant

million

Global Smart Phone Market Share (revenue)

• 2016 Q4

Apple 20.3%

Samsung 18.5 %

Huawei 11.3 %

• 2017 Q1

Samsung 26.1 %

Apple 16.9 %

Huawei 11.4 %

Semiconductor IndustryLecture 7: South Korea’s Major Industries

Semiconductor Industry

Semiconductor Industry

• Key industry of all electronic related industries

• Structure of global SC mkt btwn memory and non-memory

• Global SC mkt’s demand is volatile. The demand highly deps on

global business cycle: 2009’s over 20% demand decrease

• Global event like World Cup, Olympic,

and etc also affect demand of SC

Begging of Samsung Elec Chip1987 and 30 years after

Different Chip Products Mkt Share (2008)

Total Chip (248.6 billion $)

Non-memory (18.6%)Memory (81.4%)

RAM(10.4%) ROM(8.2%)

D ram (9.7%) S ram (0.7%) Nand (4.9%) Etc (3.3%)

source: WSTS (2009.6)

Global Chip Mkt Growth

2007 2008 2009 2010 2011

Total Chip 3.2 -2.8 -21.7 7.5 8.8

System Chip 4.5 2.3 -22.0 7.0 8.9

Memory -1.1 -19.9 -20.3 9.8 8.6

D ram -7.4 -23.2 -26.9 11.9 12.0

Nand Flash 26 -15.4 -2.1 13.7 9.5

source: WSTS (2009.5)

Growth against previous year, %

Semiconductor Industry

• Global SC mkt has been undergoing serious competition:

chicken game

• Frequent bankruptcies and large M&As are common phenomenon

• German and Taiwan manufacturers are suffering from production

cost and distribution structure problems: Kimonda (Germany),

Nanya, Powerchip (Taiwan) bankrupted in 2009.

Semiconductor Industry

• Global D-ram mkt: Samsung, Hynix, Elphida-TMC, and Micron-

Nanya-Inotera survived the chicken game.

• Japnese Govnt strongly supports Elphida and Taiwanese Govnt

also strongly supports TMC: not successful yet

• In Korea, SI was started by US coms in 1965 for cheap labor cost.

Semiconductor Industry

• In 1983, Samsung, LG, and Hyundai elec started semiconductor

prod in earnest.

• Caught up developed Cs in 1992 after developing 64M dram.

After that, led the global mkt until now.

• 4 reasons of SI success

1) Started with memory chips

2) The 3 manufacturers’ co-work through Govnt’s support

3) Timely investment and develop distribution network

4) Decisive and quick decision by owners of companies

Korean Chip Export Growth

2001 2002 2003 2004 2005 2006 2007 2008

Export14,259 16,631 19,550 26,516 29,986 37,360 39,045 32,793

(-45.2) (-16.6) (17.6) (35.7) (13.1) (24.6) (4.5) (-16.0)

Import15,547 17,476 21,840 23,618 25,133 28,043 30,817 32,018

(-22.0) (12.4) (25.0) (10.7) (6.4) (11.6) (9.9) (3.9)

source: KOTIS( ) indicates growth against previous year

Million $, %

Semiconductor Industry

• In 2009, Korea supply 53% of global memory chips.

• However, non-memory mkt is dominated by U.S.

• In the future, China will be rising as a major provider thanks to rich

semiconductor design experts and related software development.

Global Chip Mkt Share by Country

Q2-2008 Q3-2008 Q4-2008 Q1-2008 Q2-2008

ChipTotal(%)

US 47.4 47.6 48.8 51.2 49.2

Japan 23.0 23.5 24.4 21.2 21.6

Korea 10.0 9.0 7.9 8.8 10.1

China 0.4 0.4 0.4 0.4 0.3

Taiwan 4.5 4.6 3.6 4.2 4.8

DRAM(%)

US 11.4 10.6 14.2 13.3 14.4

Japan 15.6 16.0 15.7 14.9 16.6

Korea 50.0 49.5 50.9 55.2 56.0

China 14.1 14.2 9.8 10.0 11.9

NandFlash(%)

US 14.1 11.7 15.9 15.5 15.4

Japan 28.0 30.8 34.5 32.3 29.5

Korea 55.7 55.0 47.3 49.9 52.6

자료 : iSuppli.

Global Chip Mkt Manufacturers’Sales Ranking

Q2.08rank

Q2.09rank

companyQ2-08(sales)

Q1-09(sales)

Q2-09(sales)

growth share

1 1 Intel 8,469 6,680 7,494 -11.5 14.2

2 2 Samsung 4,756 2,920 3,876 -18.5 7.3

4 3 Toshiba 2,790 2,009 2,310 -17.2 4.4

3 4 TI 2,895 1,975 2,251 -22.2 4.3

5 5 ST Micro 2,721 1,660 1,993 -26.8 3.8

8 6 Qualcomm 1,762 1,316 1,786 1.4 3.4

6 7 Renaissance 1,986 1,207 1,351 -32.0 2.6

7 8 Hynix 1,774 898 1,295 -27.0 2.5

9 9 Infineon 1,600 975 1,150 -28.1 2.2

12 10 AMD 1,336 1,135 1,133 -15.2 2.1

Million $,%

source : iSuppli, 2009 . 8

%

Samsung Elec Suwon Plant and SK Hynix Icheon Plant

Global Chip Market Share

(Memory and Non-Memory Combined)• 2017 Q1

Intel 14.7%

Samsung 13.4 %

• 2017 Q2

Samsung 15.1 %

Intel 14.0 %

Steel IndustryLecture 7: South Korea’s Major Industries

Steel Industry

Steel Industry

• Capital and tech intensive industry.

• The ‘rice’ of all industries!:

The largest forward-backward linkage effects

• Forward:

Construction, Auto, Shipbuilding, Machinery,

Home elec applicance, and etc

• Backward: Coal mining, power, nonferrous metals, and etc

POSCO’s Global Competitiveness

• In June 2017, POSCO has been named the world's most

competitive steelmaker for the eighth year in a row.

• World Steel Dynamics, a U.S. information service, announced the

steelmaker rankings at a meeting in New York on Monday.

• POSCO topped the list with a score of 8.31, up 0.26 points from

last year. The Korean company received perfect scores in

technology innovation, cost reduction, skill proficiency, corporate

restructuring and investment environment.

• Russian steelmaker Severstal ranked second followed by U.S.

steelmaker Nucor with improved profitability, Russian steelmaker

NLMK and Japanese steelmaker NSSMC.

Global Competitiveness

(June 2017, source: World Steel Dynamics)• POSCO (Korea)

• Severstal (Russia)

• Nucor (US)

• NLMK (Russia)

• NSSMC (Japan)

• JSW Steel (India)

• JFE (Japan)

• Voest Alpine (Austria)

• Arcerl Mittal (India)

• Bao-Steel (China)

Steel I’s Relating Effects

2005 1995

steel chemical Auto Shipbuilding steel chemical Auto Shipbuilding

Front IndustryEffect Index

2.94 2.80 0.99 0.43 2.57 2.70 0.91 0.47

Backward IndustryEffect Index

1.43 1.35 1.41 1.26 1.42 1.24 1.25 1.19

source : KIEP

Steel Industry’s Forward and Backward Is

SteelProduction 96,283

Demand 74,285

Import10,514

Intermediate Demand66,052

Auto/Ship11,039

(10.7%)

Construction9,567

(9.3%)

Metal Goods10,887

(10.6%)

Machinery8,300

(8.1%)

2005

Forward Industry

Crude & pig iron43,617

(55.2%)

Coal2,904

(3.7%)

Electric power2,427

(3.1%)

Transportation2,181

(2.8%)

Final Demand -128

Capital -1,043

Export 9,484

SteelTotal production

96,283

Intermediate Input79,035(80.4%)

Value added19,24

8 (19.6%)

- Equity 5,431 (28.2%)

- Return onAsset

9,735 (50.5%)

- Depreciation 3,907 (20.3%)

- Tax 175 (0.9%)

Billion Won

Backward IndustryBillion Won

2005

Steel Industry’s Backward I: Mining in Australia

Steel Industry

• Economies of scale is applied.

• Large changes of product prices because of slow adjustment to

excess demand and excess supply

• Facility size adjustment and emigration of facility are not easy.

• Generally facility investment goes behind business cycle.

Steel Industry

• Steel I generates 2.9% of GDP, 11.6% of manufacturing,

and $ 25 Billion (or 6.5%) of EX in 2008.

• Crude steel prod 5,363 million ton and 6th largest producer:

POSCO and Hyundai steel have the strongest competition power in

global mkt.

• POSCO started in 1970 and built up today’s competitiveness.

Production Size by Country

Rank 2000 2008

1 China 127.2 China 500.5

2 Japan 106.4 Japan 118.7

3 US 101.8 US 91.4

4 Russia 59.1 Russia 68.5

5 Germany 46.3 Germany 55.1

6 Korea 43.1 Korea 53.6

7 Ukraine 31.8 Ukraine 45.8

8 Brazil 27.9 Brazil 37.1

9 India 26.9 India 33.7

10 Italy 26.8 Italy 30.6

World total 847.7 1,326.1

Steel Industry

• Because of active M&As in 1990s and 2000s, only Nippon Steel,

POSCO, US Steel survived from 1996.

• Global steel mkt experiences excess supply and more competitions:

top 5 coms mkt share will increase from 20% to 40% by 2020.

• Chinese steel producers’ big progress → Largest producer.

Also, India, Russia, and Brazil’s production is increasing quickly.

Production Size by Company

1N ippon

Steel28.8 N ippon Steel 28.4

A rcelor

M ittal103.3

2U sinor

Sacilor23.3 PO SC O 27.7

N ippon

Steel36.9

3 PO SC O 16.2Ispat

International22.4 Baosteel 35.4

4 British Steel 13.8C orus

Thyssen-Krupp Steel20.0 PO SC O 34.7

5 U S Steel 12.4 Shanghai 17.7 JFE Steel 33.8

6 N KK 12.1 Baosteel 17.7H eibei

Steel G .33.3

7 ILV A 11.5 N KK 16.0 W uhan 27.7

8 Thyssen 11.1 Riva 15.6 Tata Steel 24.4

9 Sum itom o 11.1 Kaw asaki 13.0Jiangsu

Shagang23.9

10 Kaw asaki 11.1Sum itom o

M etal11.6 U S Steel 23.2

Prod-

uction

Rank1990 2000 2008

C om pany C om pany C om panyProd-

uction

Prod-

uction

source: WSA, Metal Bulletin.

Steel Industry

• Intensifying competition btwn China, Japan, and Korea for global

mkt (particularly US)

• Major demander in domestic market (2008)

• POSCO 3,282 million ton, Hyundai steel 978 million ton,

and Dong Guk steel 290 million ton in 2008.

33%

23%

22%

5%

Construction

Shipbuilding

Auto

Machineries

Production Size and Mkt Share By Company

Thousand ton, %

source: Korea steel association

Rank company2008 2007

production growth share rank production

1 POSCO 32,823 5.3 61.6 1 31,160

2 Hyundai Steel 9,738 -2.6 18.3 2 9,996

3 Dong Guk 2,896 -1.2 5.4 3 2,932

4 Se-A 1,743 18.9 3.3 4 1,466

5 Korea Steel 1,208 2.3 2.3 5 1,180

6 Daihan Stell 1,167 77.1 2.2 6 659

7 YK Stell 1,051 -2.5 2 7 1,079

8 POSCO special steel 882 -27.5 1.7 8 1,216

9 Hwan Young steel 725 -5.7 1.4 9 769

10 Hankook steel 645 0.1 1.2 10 644

Total production 53,625 3.2 100 51,517

Steel Industry

• International competitiveness: 1) Japan, 2) Korea, 3) US, 4) China

• Japan and Korea: quality and production cost competitiveness

• Strong Pts of Korean Steel I: 1) superior manpower of tech,

2) production tech, 3) new tech development,

4) facility efficiency, 5) steady growth of forward Is

Competitiveness Comparison By Steel Products

Korea China Japan US

Section steel 100.0 101.5 100.0 84.8

General steel 100.0 95.5 106.1 103.0

Rebar 100.0 100 101.5 100.0

Timber 100.0 95.5 98.5 95.5

Rod 100.0 98.5 101.5 97.0

Panel 100.0 97 104.5 95.5

Hot rolled 100.0 92.4 106.1 93.9

Cold rolled 100.0 89.4 103.0 109.1

Zinc coated 100.0 89.4 112.1 107.6

Board 100.0 90.9 104.5 101.5

Pipe 100.0 89.4 97.0 84.8

Total 100.0 93.9 103.0 98.5

Steel Industry

• Weak Pts of Korean Steel I:

1) low R&D expenditure, 2) weak basic tech,

3) iron ore and coal are all imported, 4) new product

development, 5) weak demand driven product

Shipbuilding IndustryLecture 7: South Korea’s Major Industries

Shipbuilding Industry

Shipbuilding Industry

Shipbuilding Industry

• Large forward and backward related industry effect

• Steel, machinery, elec, chemical, and etc industries

• Top noch IT tech, design, and production tech are needed. Also

highly trained workforce is needed.

• Huge facilities (docks and cranes), land, managing budget are

necessary: capital intensive industry

Shipbuilding Industry

• Forward and Backward Industries

Forward Is Backward Is

shipping

fisheries

defense

leisure

Machineries

steel

electronics

chemical

furniture

Non-steel

shipping

Shipbuilding Industry

• Changes of Backward Industry

machinery535

(26.0%)

steel502

(24.4%)

Ship parts285

(13.8%)

chemical77

(3.7%)

machinery2,050

(23.7%)

steel1,313

(15.2%)

Ship parts904

(10.5%)

machinery643

(7.5%)

steel3,778

(22.6%)

machinery3,304

(19.8%)

Non-steel1,000

(10.0%)

Ship parts1,311

(7.9%)

1990 2000 2005

Billion won

Major Products of Shipbuilding Industry

LPG ship Ro-Pax ferry Cruise ship

Drill ship Container ship FPSO

Shuttle tanker Off shore construction Leisure boat

Shipbuilding Industry

• China industry’s rapid growth due to

1) strong domestic demand and

2) Govnt’s strong support.

• As of 2009, China’s shipbuilding capacity exceeded Korea:

World mkt share of 42.1%

• Major shipbuilding coms’ global mkt share

• Japan’s shipbuilding coms are undergoing active M&As

Korean Shipbuilding Industry’sLocation

1995 2000 2005 2009Annual growth(%)

(1995~2009)

Global production(ten-thousand CGT)

1,468 2,004 2,897 4,369 8.1

Production(ten-

thousandCGT)

Korea 305 648 1,009 1,447 11.8

Japan 576 641 831 961 3.7

China 76 114.5 419.4 1,239 22.1

Global market share

(%)

Korea 20.8 32.3 34.8 33.1 -

Japan 39.2 32.0 28.7 22.0 -

China 5.2 5.7 14.5 28.4 -

Relative size

Korea/Japan

0.5 1.0 1.2 1.5 -

Korea/China

4.0 5.7 2.4 1.2 -

source : Lloyd's.

Production of Ships by Country

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

Source: Lloyd’s

(ten-thousand CGT)

1960 1965 1970 1980 1990 2000 2005 2009199519851975

world

Korea

China

Japan

Major Domestic Companies’ Global Mkt Share

(unit: %) 1995 1996 1997 2000 2002 2006 2007 2008

HyundaiHeavy

construction 11.1 12.8 10.5 10.8 12.2 9.2 8.5 10.7

order 8.5 10.5 12.5 10.1 10.7 11.3 6.2 11.3

SamsungHeavy

construction 6.3 6.4 5.4 6.7 8.6 7.0 6.0 6.1

order 7.5 6.0 5.9 9.0 12.7 6.6 5.7 5.8

DaewooMarines

construction 6.6 8.5 8.0 6.7 9.5 6.1 5.1 6.4

order 4.6 7.4 10.5 6.5 6.6 5.1 5.1 7.1

HanjinHeavy

construction 1.7 1.4 2.6 2.9 1.8 1.8 1.8 1.1

order 1.6 1.9 0.8 1.7 1.9 1.3 0.5 0.7

Hyundai-SamhoHeavy

construction 1.5 2.5 3.3 1.1 5.5 4.5 2.1 4.1

order 3.8 2.5 3.9 3.4 4.1 4.6 3.0 3.7

Ranking by Company

rank

2004. 5 2006. 5 2010. 3

company countrybacklog

(thousand CGT)

company countrybacklog

(thousand CGT)

company countrybacklog

(thousand CGT)

1 Hyundai H K 8,995 Hyundai H K 11,161 Daewoo M K 8,167

2 Samsung H K 6,283 Samsung H K 8,295 Samsung H K 7,988

3 Daewoo M K 4,695 Daewoo M K 7,497 Hyundai H K 7,661

4 Hyundai-Mipo K 2,957 Hyundai-Mipo K 4,170 STX K 4,647

5Hyundai-Samho

K 2,805 Hyundai-Samho

K 2,776 Hyundai-Mipo K 4,101

6 Mitsubishi J 2,127 STX K 2,307 Hyundai-Samho

K 3,810

7 STX K 1,916 Hanjin H K 2,193 DaeRyun C 2,967

8 Hanjin H K 1,592 DaeRyun C 1,897 KangNam C 2,979

9 Shina K 862 Kawasaki J 953 JangSoo C 2,726

10 New Century C 698 Shina K 915 SeongDong K 2,602

source : Clarkson

K: Korea, C: China, J: Japan

Shipbuilding Industry

• Shipbuilding I has large employment effect:

129,827 workers as of 2008, 5.3% of total employment.

Shipbuilding Indus’ Job Creation

2002 2003 2004 2005 2006 2007 2008

ShipbuildingIndustry

86,213 86,201 90,304 92,213 104,367 118,818 129,827

Total Employment

2,712,310 2,752,175 2,814,598 2,881,003 2,878,582 2,855,426 2,466,716

Coverage ofTotal

Employment3.2 3.1 3.2 3.2 3.6 4.2 5.3

source : Statistics Korea

person, %

# 1 Item over countries (Nihon Geizai News, 2015)

• Out of 50 # 1 items, US: 16, Europe: 10, Japan: 9, Korea: 8, China: 6 items.

• Korea’s # 1 Item

* Shipbuilding: Hyundai, Daewoo, Samsung

* LCD display: LG display, Japan display, Sharp

* Smart phone: Samsung (25.4%), Apple (14.8%), Lenovo (7.2%), Huawei (5.7%)

* Lithium ion battery: Samsung SDI, Panasonic

• Japan’s # 1 Item

* Carbon Fiber: Toray

* Image sensor: SONY

# 1 Item over countries (Nihon Geizai News, 2015)

• Japan’s # 1 Item

* Robot: FANUC

* Image sensor: SONY

* Automobile: TOYOTA

* LED: Nichia chemical

* Game device: SONY

* Digital camera: Cannon

* DSLR camera: Cannon