Major Light Industries
in Korea
Food and Beverage
This industry includes two sectors, food and beverages. The
food sector consists of 8 subsectors: 1) meat and poultry 2) dairy products, 3)
seafood processing, 4) fruits and vegetables, 5) grains, 6) oil and fat, 7)
baked and confectionary goods and noodles, and 8) food additives. The beverage
sector includes both alcoholic and non-alcoholic beverages.
In the 1990s, the Korean food and beverage industry showed an
annual growth rate in production of 6 percent. The industry's total value added
for 1995 was US$7.6 billion. Just over 8 percent of the manufacturing sector is
attributed to this sector. In 1995, the total output value of the industry
amounted to US$34.3 billion, a figure representing an annual increase of 9
percent in output value over the same period of the previous year. In 1997,
however, the output value in U.S. dollar terms declined due to the Won's
depreciation.
Among the subsectors of the food industry, the baked and
confectionary goods and noodles hold the largest market share, at approximately
20 percent. Dairy products, alcoholic beverages, grains, and seafood follow in
descending order. The output growth rates of the meat and poultry, bakery and
confectionary goods and noodles, and grain processing sectors remained
relatively high while the beverage sector has shown a very low growth rate in
the past few years. The non-alcoholic beverage subsector has suffered a decrease
in output in recent years.
Korea's economic crisis, through peoples' belt-tightening and
the general mood of austerity, has caused a reduction in purchasing power. This,
in turn, has affected the production of the sub-sectors of the industry. The
output of instant noodles (ramyon), for example, is
on the increase while production of the dairy and meat and poultry sub-sectors
is decreasing.
Korea imported US$4 billion worth of processed foods in 1997.
A large portion of this total is spent on processed seafood and meat products:
US$903 million and US$820 million, respectively. US$433 million is spent on
imported processed fruits and vegetables. The import totals for both the oil and
fats and alcoholic beverages sub-sectors are US$300 million. The import of
processed foods will decrease significantly this year with the devaluation of
the Korean Won.
The quality of food consumed has been steadily improving in
accordance with the rising income levels. In addition, the rising number of
health-conscious consumers has lead to a growing demand for health foods.
However, the slowing of the economy that began in the mid-1990s resulted in
decreased food demand due to the decrease in real income and increase in
unemployment attributable to the current economic crisis. Consumption will
center on price rather than quality.
At the end of 1997, processed food exports totaled US$2.5
billion. Major Korean exports include chewing gum, chocolate, ginseng tea, kimchi (fermented cabbage), monosodium glutamic acid (MSG), processed
crab meat, and instant noodles (ramyon), among
others. A dramatic rise in exports is expected as a result of the ongoing
devaluation of the Korean Won. However, the rate of imports will lower.
Back to Top...
Textiles
In 1997, Korea's textile exports were valued at approximately
US$18.3 billion, up 3.3 percent from the previous year. This increase stemmed
from the growth in synthetic textile yarn and knit goods exports. However, due
to Hong Kong's reduced demand for polyester fabrics, exports were down.
In 1997, the nation's general business slump inhibited
investment in new facilities by most local textile producers. In particular,
synthetic fabric manufacturers with abundant facilities saw a sharp reduction of
exports, which suffocated most new investment. Further investment in facilities
will be diminished or eliminated. Synthetic textile companies, which have long
led the build-up, have already halted expansion. Foreign investment in
facilities will also decline.
In 1998, the economic depression is expected to continue. Most
companies plan to reduce production. Textile imports will also fall as a result
of the reduction in imported apparel and other goods.
Back to Top...
Paper and Paper Products
The paper and paperboard industry consists of separate
manufacturing companies which process pulp, recycled paper and paperboard, and
other cellulose fiber sources. The sector is divided into three major commodity
groupings: primary product manufacturers covering the production of pulp, paper
and paperboard, paperboard container producers and box producers.
Korea's paper and paperboard industry is recognized worldwide
as a high-quality, high-volume, and low-cost producer that benefits from a
number of key operating advantages. Korea's paper and paperboard production
increased by 4.29 million metric tons, or 52 percent as a result of the
considerable increases in export volume and domestic demand throughout the past
five years. According to a 1992 KIET survey, total capacity reached 6 million
metric tons. From 1990-1997, the total exports of this industry grouping grew
from US$0.45 billion to US$1.64 billion, peaking at a 20.3 percent annual growth
rate due in large part to increasing demand from China, Hong Kong and Central
Asian countries.
Back to Top...
Information
provided by the Korean Embassy
|