Korean machine tool industry looks forward to recovery

In the fourth quarter of 2008, the average factory operating rate of the Korean manufacturing industry fell below 70%. South Korea's economic growth rate fell 3.4 percent from the same period in 2007. This is the first time that South Korea's economy has experienced negative growth since the 1998 financial crisis, and it also marks that the negative impact of this financial crisis has fully spread to the real economy. Affected by the global economic contraction, the major industries facing the Korean machine tool industry have been slowing down since the fourth quarter of 2008. As the 'worldwide consumption recession' and 'export slowdown' intensified, both orders and production in the machine tool industry fell sharply. Among them, due to the severe impact of the auto industry in the current financial crisis, many domestic auto companies have chosen to reduce production. Correspondingly, the demand for machine tools in the automotive industry also fell by 21.3%. However, the shipbuilding industry saw a 33% increase in demand for the machine tool industry as several major manufacturers continued to receive large orders. In 2008, the foreign trade balance of the Korean machine tool industry was 580 million. Among them, the export value was 1.91 billion, an increase of 5.1% over the same period last year, but the growth rate of exports has been slowing down since the second half of 2008. Imports amounted to 1.33 billion, down 1.2% year-on-year due to tightening domestic demand and a high Korean won exchange rate According to the latest research released by Samsung Economic Research Institute (SERI), South Korea's economic growth is expected to decline by 2.4% in 2009, but financial The impact of the crisis will be delayed. It is estimated that in the second half of 2009, with the signing of a free trade agreement between South Korea and the European Union and a series of government policies to stimulate the economy, South Korea's economic situation will 'bottom out' and gradually recover. Under this situation, the recovery of the demand for machine tools can be expected from some large-scale manufacturing enterprises. With the new development plans of major manufacturing companies such as Hyundai and Doosan, as well as plans in the energy industry such as Siwha Lake tidal energy development and Jeju Island solar energy development, the machine tool industry's needs may be resolved. It is estimated that the level of demand for the machine tool industry in the manufacturing industry can return to the level before 2008 after the depression at home and abroad is alleviated.