Invest KOREA

Results of the business survey index (BSI) of the manufacturing sector in the second quarter of 2013 showed weaker performance. The economic sentiment of companies also showed a slow recovery.

However, there was a gap between industries as the performance of semiconductors and three other sectors improved compared to the previous quarter, whereas six sectors including electronics and electronic devices showed weaker performance.

Performance in terms of sales, domestic demand, exports and ordinary income slowed relative to the first quarter.

However, as the prospective index, which represents economic forecasts, exceeds the standard (100) at 102, the Korean economy is expected to recover gradually in the second half of this year.

With a strong semiconductor industry, the textile (117) and steel (108) industries are expected to improve. However, shipbuilding (96), electronic devices (92) and machinery and equipment (95) are predicted to weaken slightly.

Sales (106), domestic demand (105), and exports (104) are likely to improve, and ordinary income will be close to that in the first quarter.

The Ministry of Trade, Industry and Energy (MOTIE) analyzed that the BSI reflected expectations for fewer uncertainties, with economic recovery in major countries.

MOTIE will reinforce its efforts to improve the business environment and facilitate investment and exports, so that the positive expectations of companies can lead to an improved real economy.

Source: Ministry of Trade, Industry and Energy (July 3, 2013)

** This article was translated from the Korean.