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Changes in Domestic and External Conditions and their Impact on Industries in 2025
Prospects for Korea’s 13 Major Industries in 2025
(Exports) The IT industry is expected to lead the overall growth of exports for the 13 major industries following the previous year, but the growth is expected to slow down due to the base effect.
ㆍExports of the 13 major industries in 2024 are expected to record a significant increase of 10.3% compared to 2023, driven by strong exports of semiconductors, information and communication devices, shipbuilding and bio-health.
- (Machinery Industries: The shipbuilding industry (4.1%) will continue to grow, but exports of automotive (-2.7%) and general machinery (0.2%) will stagnate, and overall exports of the machinery industries group are expected to fall by 0.8% compared to 2024.
- (Material industries: Despite an increase in steel (5.0%) and petrochemicals (0.1%), the impact of a significant decrease in exports of refined oil (-7.5%) will result in a year-on-year decrease of 1. 5%, continuing the sluggish performance of last year.
- (IT and new industries: The exports of the IT and new industries group, which surged to 28% in 2024, is expected to continue growing by 6.9% in 2025 as demand for IT devices increase, driven by the growth in demand for AI and the improvement in consumer sentiment, and the increase of exports of semiconductors (8.5%), information and communication devices (8.4%), and bio-health (4.9%). However, the stagnation in demand for electric vehicles and China's increased competitiveness are weighing on export growth.

(Domestic demand Domestic demand in most industries is expected to increase slightly year-on-year as consumer sentiment improves and companies launch new products.
- (Machinery industries: Domestic demand in major industries such as general machinery (1.1%) and automotive (3.6%) is expected to turn to growth in 2025 as manufacturers increase investment and companies focus their sales strategies on the domestic market.
- (Materials industry: The recovery in downstream industries will enable a rebound in domestic demand of the petrochemical industry (4.2%), and the oil refining industry is expected to maintain the scale of domestic demand (0.1%). However, the steel industry (-2.1%) is expected to see domestic demand fall for two straight years due to the delayed recovery in demand from the construction sector.
- (New and IT industries: Domestic demand for major IT industries such as information and communication devices (4.3%) and semiconductors (17.3%) is expected to increase, supported by strong IT exports and consumers replacing their devices, and the bio-health industry is expected to maintain its strong growth (13.3%) by introducing new drugs. However, domestic demand for secondary batteries (-21.8%) is expected to continue to decline due to the shrinking production and sales of electric vehicles.
(Production) The IT and new industries group with a high dependence on exports is expected to increase production, while the production of other industries, such as automotive, is expected to contract following the previous year due to weak improvements in domestic demand and export conditions.
- Machinery industries: Overseas production expansion is expected to cause a second consecutive year of decline in automotive (-1.5%) production, and a slight decline in shipbuilding (-1.5%) is expected due to the base effect, but machinery (0. 2%) production is expected to increase.
- Material industries: Due to the weak improvement in domestic demand and export conditions, the sluggish performance of steel (-0.6%) and textiles (-1.0%) is expected to continue. The production of petrochemicals is expected to start growing albeit slowly (0.8%) as sales unit price improves.
- New and IT industries: As the strong export performance and improved domestic demand continue, the production of information and communication devices (5.6%), semiconductors (11.1%), and bio-health (12.7%) is expected to continue growth, while secondary batteries (-4.4%) are expected to continue shrinking due to weak export and domestic demand.

(Imports) Imports will grow by 3.6% year-on-year as IT and new industries increase imports in line with the recovery of domestic demand.
- Machinery industries: Increased imports related to electric vehicles are expected to boost automotive imports, and general machinery is expected to continue to see an increase in imports due to the recovery of the manufacturing industry. Imports of the shipbuilding industry are expected grow as the industry imports more ships from China and build more LNG carriers.
- Material industries: The continued influx of general-purpose products from China is a factor leading to the increase in imports of steel, petrochemicals, and textiles, but domestic growth stagnation is expected to limit the increase. Imports of refined oil are expected to decline due to falling unit prices.
- New and IT industries: Imports of major IT industries are expected to continue growing as domestic demand recovers, new products are launched, and reverse imports spread. Imports of the bio-health industry are expected to turn positive, while the secondary batteries industry is expected to cut imports due to sluggish domestic demand.
- (Machinery industry) Automotive, Shipbuilding, General Machinery
- (Material industry) Steel, Oil Refining, Petrochemicals, Textiles
- (IT & new industries) ICT Devices, Home Appliance, Semiconductor, Display, Secondary Battery, Bio-health
※Source: Korea Institute for Industrial Economics and Trade (kiet.re.kr) (kiet.re.kr)