South Korean Manufacturing at a Crossroads

A staggering 84% of domestic manufacturing firms in South Korea believe their main products have hit growth ceilings. Despite this, financial hurdles and murky market futures keep more than half from venturing into new business territories.

Survey Reveals Market Saturation

A recent survey by the Korea Chamber of Commerce and Industry (KCCI) involving 2,186 manufacturers nationwide paints a bleak picture: 54.5% see their main products in the maturity stage, and 27.8% report declining demand. Only a tiny fraction remains optimistic about growth or market introduction phases.

Industry-Specific Challenges

Non-metallic minerals, oil refining, petrochemicals, and steel industries are among the hardest hit, with machinery, textiles, automobiles, food, and electronics also facing significant stagnation.

Barriers to Innovation

Financial difficulties, uncertain market prospects, and a lack of viable new business ideas are the main culprits behind the hesitation to innovate. Nearly half of the companies cite uncertain market prospects as a major obstacle, exacerbated by global economic tensions and domestic downturns.

Call for Government Support

The KCCI urges immediate action, proposing investment incentives, tax support, and subsidies to revive the manufacturing sector. "Sharing the risk of failure with companies is crucial to fostering innovation," says Kim Hyun-soo of the KCCI, highlighting the need for a collaborative approach to navigate these challenging times.