According to Yonhap News,

(SEOUL = Yonhap News) Korea’s economy is likely to recover at a moderate pace in 2014, supported by export growth in the auto, petrochemicals and electronic appliance industries.

Shipbuilding, machinery and steel industries are likely to rebound from the prolonged slump of the last year, but display manufacturers will continue to see negative growth throughout the year.

The global economy, particularly developed nations including the United States, is expected to show signs of moderate recovery in 2014. However, Korea may face unfavorable factors including the reform of the manufacturing sector by the United States, which has gained confidence from its economic recovery and the shale gas boom in recent years, as well as Japan’s low yen policy and China’s domestic market-oriented growth strategies.

The Ministry of Trade, Industry & Energy announced its “2014 key industry outlook and measures” to provide detailed information about the trend of exports across industries.

Korea’s car production will soar to 4.6 million units in 2014, up by 2.2 percent from 2013. Factors including demand for new cars, individual consumption tax reduction in January (7→6 percent) and tariff reductions through the Korea-EU free trade agreement are opportunities for the Korean auto industry. However, there are risks, such as the expansion of ordinary wages and tightened environmental regulations.

In 2014, the auto industry is forecast to record the largest export volume in history due to increased demand worldwide. The industry is likely to post a 4.7 percent increase in exports, to USD 51 billion.

The export of petrochemicals is expected to rise by 4.1 percent to USD 50.4 billion, while the export of electronic appliances will post 3.9 percent growth, to USD 15.3 billion. In particular, the electronic appliance industry is likely to enjoy positive growth in both domestic and international markets thanks to increased demand for smart TVs and major sporting events including the Sochi 2014 Winter Olympics and the 2014 FIFA World Cup.

The export volume of semiconductors is forecast to increase by 2.6 percent to USD 58.6 billion. The government will encourage Korean businesses to secure core technologies and carry out restructuring for business expansion to compete against Japanese semiconductor manufacturers who are backed by the low yen phenomenon.

The shipbuilding, offshore plant, machinery and steel industries, which recorded negative growth in exports in 2013, are likely to rebound somewhat this year. However, risks remain due to a recession in the global shipbuilding market and oversupply of steel plates.

The export of display products is expected to continue seeing negative growth for the second straight year and fall by 5.3 percent to USD 32.2 billion due to the oversupply of liquid crystal displays (LCD). The industry recorded -2.4 percent in exports in 2013.

The government plans to establish a real-time monitoring system for export items and hold conferences with a committee for the fortification of industrial infrastructure and the trade and investment promotion meeting as well as meetings with Korea’s top 30 companies and other businesses across industries to discuss measures to vitalize investment and expand exports.